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78R1797 AJA-D

By:  Seaman                                                       H.B. No. 241



A BILL TO BE ENTITLED

AN ACT

relating to notice of certain changes in residential property 
insurance coverage on renewal.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 5, Insurance Code, is 
amended to add Article 5.45 to read as follows:
	Art. 5.45.  NOTICE ON RENEWAL OF CERTAIN POLICIES.  (a)  An 
insurer, including a farm mutual insurance company, a county mutual 
insurance company, Lloyd's plan, or reciprocal or interinsurance 
exchange, that renews a policy of homeowners insurance, fire and 
residential allied lines insurance, farm and ranch owners 
insurance, or farm and ranch insurance must provide the policy 
holder with written notice of any difference in each form of the 
policy offered to the policy holder on renewal and the form of the 
policy held immediately before renewal.
	(b)  A notice provided under this article must be written in 
plain language.
	(c)  The commissioner may adopt rules as necessary to 
implement this article.
	SECTION 2.  This Act applies only to an insurance policy 
renewed on or after the 30th day after the effective date of this 
Act.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.