1-1 AN ACT 1-2 relating to certain practices of title insurance companies in 1-3 providing area and boundary coverage. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 9, Insurance Code, is amended by adding 1-6 Article 9.07C to read as follows: 1-7 Art. 9.07C. AREA AND BOUNDARY COVERAGE. (a) In this 1-8 article, "area and boundary coverage" means title insurance 1-9 coverage relating to discrepancies, conflicts, or shortages in area 1-10 or boundary lines, or any encroachments or protrusions, or any 1-11 overlapping of improvements. 1-12 (b) The commissioner may adopt rules allowing a title 1-13 insurance company to accept an existing real property survey and 1-14 not require a new survey when providing area and boundary coverage 1-15 if the title insurance company is willing to accept evidence of an 1-16 existing real property survey, and an affidavit verifying the 1-17 existing survey, as prescribed by the commissioner, notwithstanding 1-18 the age of the survey or the identity of the person for whom the 1-19 survey was prepared. 1-20 (c) A title insurance company may not discriminate in 1-21 providing area and boundary coverage in connection with residential 1-22 real property solely because: 1-23 (1) the real property is platted or unplatted; or 1-24 (2) a municipality did not accept a subdivision plat 1-25 in relation to the real property before September 1, 1975. 2-1 (d) A title insurance company may not require an indemnity 2-2 from a seller, buyer, borrower, or lender to provide area and 2-3 boundary coverage. 2-4 SECTION 2. This Act takes effect immediately if it receives 2-5 a vote of two-thirds of all the members elected to each house, as 2-6 provided by Section 39, Article III, Texas Constitution. If this 2-7 Act does not receive the vote necessary for immediate effect, this 2-8 Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1707 passed the Senate on May 3, 2001, by the following vote: Yeas 30, Nays 0, one present, not voting. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1707 passed the House on May 17, 2001, by the following vote: Yeas 139, Nays 1, two present, not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor