78R157 MXM-D
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 ACTUAL CASH VALUE OR REPLACEMENT COST
VALUE. An insurer that provides personal property insurance
coverage in this state for jewelry may provide a policyholder the
option to elect either actual cash value or replacement cost value
coverage for the jewelry.
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.