1-1                                   AN ACT
 1-2     relating to certain home protection insurance.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Article 5.53-A, Insurance Code, is amended to
 1-5     read as follows:
 1-6           Art. 5.53-A.  HOME WARRANTY INSURANCE; HOME PROTECTION
 1-7     INSURANCE
 1-8           Sec. 1.  INSURANCE COVERAGE; LIMITATIONS.  (a) Any company
 1-9     licensed to engage in the business of fire insurance and its allied
1-10     lines, or  marine insurance, or both, is authorized to write home
1-11     warranty insurance or home protection insurance in this state
1-12     [Texas].
1-13           (b)  Insurance subject to this article [Home warranty
1-14     insurance] is not inland marine insurance, but shall be governed in
1-15     the same manner  and to the same extent as inland marine insurance.
1-16           (c)  The amount of coverage under a policy of home protection
1-17     insurance may not exceed $2,000 for any single occurrence.
1-18           Sec. 2.  DEFINITIONS.  In [As used in] this article:
1-19                 (1)  "Home [Code, the term "home] warranty insurance"
1-20     means coverage insuring:
1-21                       (A)  [insurance assuring either (1)] performance
1-22     by builders of residential property of their warranty obligations
1-23     to purchasers of such property; or
1-24                       (B) [(2)]  against named defects arising from
 2-1     failure of the builder to construct residential property in
 2-2     accordance with specified  construction standards.
 2-3                 (2)  "Home protection insurance" means coverage
 2-4     insuring purchasers of home protection services or products against
 2-5     actual  property loss.
 2-6                 (3)  "Home protection service or product" means a
 2-7     service or  product used for the protection of residential
 2-8     property, including a service or product provided by a person
 2-9     regulated under the Private Investigators and Private Security
2-10     Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes).
2-11           SECTION 2.  Article 5.53-A, Insurance Code, as amended by
2-12     this Act, applies only to an insurance policy delivered, issued for
2-13     delivery, or renewed on or after January 1, 2000.  A policy
2-14     delivered, issued for delivery, or renewed before January 1, 2000,
2-15     is governed by the law as it existed immediately before the
2-16     effective date of this Act, and that law is continued in effect for
2-17     that purpose.
2-18           SECTION 3.  This Act takes effect September 1, 1999.
2-19           SECTION 4.  The importance of this legislation and the
2-20     crowded condition of the calendars in both houses create an
2-21     emergency and an imperative public necessity that the
2-22     constitutional rule requiring bills to be read on three several
2-23     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2941 was passed by the House on April
         23, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2941 was passed by the Senate on May
         26, 1999, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor