1-1                                   AN ACT
 1-2     relating to insurers providing a written explanation of certain
 1-3     endorsements to insurance policies.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter C, Chapter 5, Insurance Code, is
 1-6     amended by adding Article 5.36 to read as follows:
 1-7           Art. 5.36.  WRITTEN EXPLANATION OF CERTAIN ENDORSEMENTS
 1-8     REQUIRED. An insurer may not use an endorsement to a policy form to
 1-9     which Article 5.35 of this code applies that reduces the amount of
1-10     coverage, unless requested by the insured, that would otherwise be
1-11     provided under the policy unless the insurer provides the
1-12     policyholder with a written explanation of the change made by the
1-13     endorsement before the effective date of the change.
1-14           SECTION 2. This Act takes effect September 1, 2001, and
1-15     applies only to an endorsement used on or after January 1, 2002.
1-16     An endorsement used before January 1, 2002, is governed by the law
1-17     in effect immediately before the effective date of this Act, and
1-18     that law is continued in effect for that purpose.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1891 was passed by the House on March
         29, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1891 on May 15, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1891 was passed by the Senate, with
         amendments, on May 10, 2001, by the following vote:  Yeas 29, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor