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.