SRC-SLL H.B. 2941 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2941
By: Lewis, Glenn (Armbrister)
Economic Development
5/13/1999
Engrossed


DIGEST 

Companies that offer home protection services or products often provide
deductible reimbursement benefits to their customers when they suffer a
property loss.  Insurers would like to insure these companies for the risks
associated with providing reimbursement benefits, but the Texas Department
of Insurance has been unable to establish the type of policy and wording
that would provide the required coverage for these benefits.  H.B. 2941
authorizes a fire or marine insurer to write home protection insurance.
Under this bill, coverage under a home protection insurance policy cannot
exceed $2,000 for any single occurrence.  

PURPOSE

As proposed, H.B. 2941 sets forth regulations regarding home protection
insurance. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 5.53-A, Insurance Code, as follows:

ARTICLE 5.53-A.  New title: HOME WARRANTY INSURANCE; HOME PROTECTION
INSURANCE 

Sec. 1.  New heading: INSURANCE COVERAGE; LIMITATIONS.  Includes home
protection insurance among the types of insurance (home warranty
insurance), a fire or marine insurer is authorized to write.  Adds this
subsection to prohibit the amount of coverage under a home protection
insurance policy from exceeding $2,000 for any singleoccurrence.  Makes a
conforming change. 

Sec. 2.  New heading: DEFINITIONS.  Adds definitions for "home warranty
insurance," "home protection insurance," and "home protection service or
product."  Home protection insurance means coverage insuring purchasers of
home protection services or products against actual property loss. Home
protection service or product means a service or product used for the
protection of residential property, including a service or product provided
by a person regulated under Article 4413(29bb), V.T.C.S. ( Private
Investigators and Private Security Agencies Act).  Makes conforming and
nonsubstantive changes.  

SECTION 2.  Makes application of this Act prospective for an insurance
policy delivered, issued for delivery, or renewed on or after January
1,2000.  

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.