Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

         By:  Patterson                               S.B. No. 1387

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to authority by the Association, after prior approval by

 1-2     the Commissioner, to issued policies paying actual cash value

 1-3     benefits instead of replacement cost benefits for damage to roofs

 1-4     when underwriting criteria approved by the Commissioner are met.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  The Texas Catastrophe Property Insurance Pool Act

 1-7     (Article 21.49, Insurance Code) is amended to read as follows:

 1-8           Sec. 8A(b).  If, at the time of loss, the total amount of

 1-9     insurance applicable to the dwelling is equal to 80 percent or more

1-10     of the full replacement cost of the dwelling or equal to the

1-11     maximum amount of insurance otherwise available through the

1-12     Association, coverage applicable to the dwelling under the policy

1-13     may be extended to include the full cost of repair or replacement,

1-14     without a deduction for depreciation.  If, at the time of loss, the

1-15     total amount of insurance applicable to the dwelling is equal to

1-16     less than 80 percent of the full replacement cost of the dwelling

1-17     and less than the maximum amount of insurance available through the

1-18     Association, liability for loss under the policy may not exceed the

1-19     replacement cost of that part of the dwelling damaged or destroyed,

1-20     less depreciation.  Notwithstanding anything to the contrary in

1-21     this Act or other law, and subject to the prior approval and

1-22     conditions of the Commissioner after a public hearing, the

1-23     Association may implement underwriting guidelines allowing it to

 2-1     insure roofs of a building covered by a TCPIA policy based on

 2-2     actual cash value instead of replacement costs.

 2-3           SECTION 2.  This Act takes effect on September 1, 1997.

 2-4           SECTION 3.  The importance of this legislation and the

 2-5     crowded condition of the calendars in both houses create an

 2-6     emergency and an imperative public necessity that the

 2-7     constitutional rule requiring bills to be read on three several

 2-8     days in each house be suspended, and this rule is hereby suspended.