By: Burnam H.B. No. 124
A BILL TO BE ENTITLED
AN ACT
relating to property insurance coverage for certain jewelry.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 5, Insurance Code, is
amended by adding Article 5.35-2 to read as follows:
Art. 5.35-2. JEWELRY COVERAGE
Sec. 1. DEFINITION. In this article, "personal property
insurance" means insurance against damage to or loss of tangible
personal property, including coverage provided in a homeowners
policy, residential fire and allied lines policy, or farm and ranch
owners policy.
Sec. 2. APPLICABILITY. This article applies to each insurer
that provides personal property insurance in this state, including
a county mutual insurer, farm mutual insurer, Lloyd's plan, or
reciprocal or interinsurance exchange.
Sec. 3. ELECTION OF STATED VALUE OR ACTUAL REPLACEMENT OF
THE JEWELRY ITEM WITH ONE OF LIKE KIND AND QUALITY. An insurer that
provides personal property insurance coverage in this state for
jewelry will have the option to elect either to pay the stated value
or actual replacement of the jewelry item with one of like kind and
quality.
SECTION 2. (a) This Act takes effect September 1, 2003,
and applies only to an insurance policy that is delivered, issued
for delivery, or renewed on or after January 1, 2004. A policy that
is delivered, issued for delivery, or renewed before January 1,
2004, is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
this purpose.
(b) Not later than December 31, 2003, the commissioner of
insurance shall, in accordance with Article 5.35, Insurance Code,
adopt any policy forms and endorsements necessary to implement
Article 5.35-2, Insurance Code, as added by this Act.