By Lewis of Tarrant H.B. No. 2941
76R8278 PB-F
A BILL TO BE ENTITLED
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.