1-1 By: Lewis of Tarrant (Senate Sponsor - Armbrister) H.B. No. 2941
1-2 (In the Senate - Received from the House April 26, 1999;
1-3 April 27, 1999, read first time and referred to Committee on
1-4 Economic Development; May 14, 1999, reported favorably by the
1-5 following vote: Yeas 4, Nays 0; May 14, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to certain home protection insurance.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Article 5.53-A, Insurance Code, is amended to
1-11 read as follows:
1-12 Art. 5.53-A. HOME WARRANTY INSURANCE; HOME PROTECTION
1-13 INSURANCE
1-14 Sec. 1. INSURANCE COVERAGE; LIMITATIONS. (a) Any company
1-15 licensed to engage in the business of fire insurance and its allied
1-16 lines, or marine insurance, or both, is authorized to write home
1-17 warranty insurance or home protection insurance in this state
1-18 [Texas].
1-19 (b) Insurance subject to this article [Home warranty
1-20 insurance] is not inland marine insurance, but shall be governed in
1-21 the same manner and to the same extent as inland marine insurance.
1-22 (c) The amount of coverage under a policy of home protection
1-23 insurance may not exceed $2,000 for any single occurrence.
1-24 Sec. 2. DEFINITIONS. In [As used in] this article:
1-25 (1) "Home [Code, the term "home] warranty insurance"
1-26 means coverage insuring:
1-27 (A) [insurance assuring either (1)] performance
1-28 by builders of residential property of their warranty obligations
1-29 to purchasers of such property; or
1-30 (B) [(2)] against named defects arising from
1-31 failure of the builder to construct residential property in
1-32 accordance with specified construction standards.
1-33 (2) "Home protection insurance" means coverage
1-34 insuring purchasers of home protection services or products against
1-35 actual property loss.
1-36 (3) "Home protection service or product" means a
1-37 service or product used for the protection of residential
1-38 property, including a service or product provided by a person
1-39 regulated under the Private Investigators and Private Security
1-40 Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes).
1-41 SECTION 2. Article 5.53-A, Insurance Code, as amended by
1-42 this Act, applies only to an insurance policy delivered, issued for
1-43 delivery, or renewed on or after January 1, 2000. A policy
1-44 delivered, issued for delivery, or renewed before January 1, 2000,
1-45 is governed by the law as it existed immediately before the
1-46 effective date of this Act, and that law is continued in effect for
1-47 that purpose.
1-48 SECTION 3. This Act takes effect September 1, 1999.
1-49 SECTION 4. The importance of this legislation and the
1-50 crowded condition of the calendars in both houses create an
1-51 emergency and an imperative public necessity that the
1-52 constitutional rule requiring bills to be read on three several
1-53 days in each house be suspended, and this rule is hereby suspended.
1-54 * * * * *