By: Patterson S.B. No. 1387 A BILL TO BE ENTITLED AN ACT 1-1 relating to benefits for certain roof damage on property insured 1-2 through the Texas Catastrophe Property Insurance Association. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 8A, Article 21.49, Insurance Code, is 1-5 amended by amending Subsection (b) and by adding Subsections (d) 1-6 and (e) to read as follows: 1-7 (b) If, at the time of loss, the total amount of insurance 1-8 applicable to the dwelling is equal to 80 percent or more of the 1-9 full replacement cost of the dwelling or equal to the maximum 1-10 amount of insurance otherwise available through the Association, 1-11 coverage applicable to the dwelling under the policy is extended to 1-12 include the full cost of repair or replacement, without a deduction 1-13 for depreciation. If, at the time of loss, the total amount of 1-14 insurance applicable to the dwelling is equal to less than 80 1-15 percent of the full replacement cost of the dwelling and less than 1-16 the maximum amount of insurance available through the Association, 1-17 liability for loss under the policy may not exceed the replacement 1-18 cost of that part of the dwelling damaged or destroyed, less 1-19 depreciation. Notwithstanding any other provision of this Act or 1-20 other law, the commissioner, after notice and hearing, may adopt 1-21 rules to: 1-22 (1) authorize the Association to provide actual cash 1-23 value coverage instead of replacement cost coverage on the roof 2-1 covering of a building insured by the Association; and 2-2 (2) determine: 2-3 (A) the conditions under which the Association 2-4 may provide that actual cash value coverage; 2-5 (B) the appropriate premium reductions when 2-6 coverage for the roof covering is provided on an actual cash value 2-7 basis; and 2-8 (C) the disclosure that must be provided to the 2-9 policyholder, prominently displayed on the face of the windstorm 2-10 and hail insurance policy. 2-11 (d) Notwithstanding Article 1.33B of this code, a hearing 2-12 under Subsection (b) of this section shall be held before the 2-13 commissioner or the commissioner's designee. 2-14 (e) For purposes of this section, "roof covering" means: 2-15 (1) the roofing material exposed to the weather; 2-16 (2) the underlayments applied for moisture protection; 2-17 and 2-18 (3) all flashings required in the replacement of a 2-19 roof covering. 2-20 SECTION 2. Section 8A, Article 21.49, Insurance Code, as 2-21 amended by this Act, applies only to an insurance policy that is 2-22 delivered, issued for delivery, or renewed on or after January 1, 2-23 1998. A policy that is delivered, issued for delivery, or renewed 2-24 before January 1, 1998, is governed by the law as it existed 2-25 immediately before the effective date of this Act, and that law is 3-1 continued in effect for this purpose. 3-2 SECTION 3. This Act takes effect September 1, 1997. 3-3 SECTION 4. The importance of this legislation and the 3-4 crowded condition of the calendars in both houses create an 3-5 emergency and an imperative public necessity that the 3-6 constitutional rule requiring bills to be read on three several 3-7 days in each house be suspended, and this rule is hereby suspended.