By:  Burnam (Senate Sponsor - Van de Putte)                       H.B. No. 124
	(In the Senate - Received from the House May 19, 2003; 
May 20, 2003, read first time and referred to Committee on Business 
and Commerce; May 23, 2003, reported favorably by the following 
vote:  Yeas 9, Nays 0; May 23, 2003, sent to printer.)


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.



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