By Lewis of Tarrant                                   H.B. No. 1891
         77R6394 AJA-D                           
                                A BILL TO BE ENTITLED
 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 that would otherwise be provided under the policy unless
1-11     the insurer provides the policyholder with a written explanation of
1-12     the change made by the endorsement before the effective date of the
1-13     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.