Amend CSSB 14 (House Committee Printing) by adding the
following new ARTICLE to the bill and renumbering existing ARTICLES
accordingly:
ARTICLE _____. CANCELLATION OF CERTAIN INSURANCE POLICIES
SECTION _____.01. The heading to Article 21.49-2A, Insurance
Code, is amended to read as follows:
Art. 21.49-2A. CANCELLATION AND NONRENEWAL OF CERTAIN
LIABILITY AND COMMERCIAL PROPERTY INSURANCE COVERAGE.
SECTION _____.02. Subsections (a), Article 21.49-2A,
Insurance Code, is amended by amending Subdivision (2) and adding
Subdivision (3) to read as follows:
(2) "Insurer" means each insurance company or other
entity admitted to do business and authorized to write liability or
commercial property insurance in this state, including county
mutual insurance companies, Lloyd's plan companies, and reciprocal
or interinsurance exchanges but excluding farm mutual insurance
companies and county mutual fire insurance companies writing
exclusively industrial fire insurance as defined by Article 17.02
of this code.
(3) "Commercial property insurance" means insurance
covering direct or indirect loss resulting from property damage to
commercial property.
SECTION _____.03. Subsections (b) and (d), Article 21.49-2A,
Insurance Code, are amended to read as follows:
(b) Except as provided by Section (c) of this article, an
insurer may not cancel:
(1) a policy of liability or commercial property
insurance that is a renewal or continuation policy; or
(2) a policy of liability or commercial property
insurance that is in its initial policy period after the 60th day
following the date on which the policy was issued.
(d) An insurer must deliver or mail to the first-named
insured under a liability or commercial property insurance policy
at the address shown on the policy written notice of cancellation of
the policy not less than the 10th day before the date on which the
cancellation takes effect.
SECTION _____.04. Section 2, Article 21.49-2B, Insurance
Code, is amended to read as follows:
Sec. 2. APPLICATION. This article applies only to:
(1) a personal automobile insurance policy, other than
a policy written through the Texas Automobile Insurance Plan;
(2) a homeowners or farm or ranch owner's policy; and
(3) a standard fire policy insuring a one-family
dwelling, a duplex, or the contents of a one-family dwelling, a
duplex, or an apartment [; and
(4) a policy providing property and casualty coverage
to a governmental unit, other than a fidelity, surety, or guaranty
bond].