By Moreno of Harris H.B. No. 1461 77R3036 AJA-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to homeowners insurance policies covering the percentage 1-3 of the replacement or market value of a home designated by the 1-4 insured. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter C, Chapter 5, Insurance Code, is 1-7 amended by adding Article 5.35-2 to read as follows: 1-8 Art. 5.35-2. COVERAGE FOR PERCENTAGE OF REPLACEMENT OR 1-9 MARKET VALUE. (a) In this article, "homeowners insurance" means 1-10 insurance coverage written by an insurance company or other entity 1-11 authorized to engage in the business of fire and residential allied 1-12 lines insurance in this state, including coverage written by: 1-13 (1) a farm mutual insurance company; 1-14 (2) a county mutual insurance company; 1-15 (3) a Lloyd's plan insurer; or 1-16 (4) a reciprocal or interinsurance exchange. 1-17 (b) An insurer writing homeowners insurance in this state 1-18 must offer a policy that provides coverage for the percentage, not 1-19 to exceed 100 percent, of a home's market or replacement value that 1-20 the homeowner designates at the time the policy is purchased. 1-21 (c) The commissioner shall adopt rules as necessary to 1-22 implement this article. 1-23 (d) This article does not affect any right of a person who 1-24 holds a lien on a home under Section 50, Article XVI, Texas 2-1 Constitution, or another law, to require a homeowner to obtain 2-2 homeowners insurance coverage in an amount specified by the lien 2-3 holder. 2-4 SECTION 2. (a) This Act takes effect September 1, 2001. 2-5 (b) An insurer is not required to comply with Article 2-6 5.35-2, Insurance Code, as added by this Act, until September 1, 2-7 2002. 2-8 (c) The commissioner shall adopt all rules necessary to 2-9 implement Article 5.35-2, Insurance Code, as added by this Act, not 2-10 later than January 1, 2002.