78R4095 DLF-D

By:  Dukes                                                        H.B. No. 979



A BILL TO BE ENTITLED

AN ACT

relating to property and casualty insurance coverage for certain 
manufactured homes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 5, Insurance Code, is 
amended by adding Article 5.35-4 to read as follows:
	Art. 5.35-4.  COVERAGE FOR MANUFACTURED HOMES.  (a)  An 
insurer, including a Lloyd's plan or a reciprocal or interinsurance 
exchange, may not issue a residential fire insurance policy 
providing coverage for damage to a manufactured home unless the 
insurer first offers, and the applicant for coverage rejects in 
writing, a comprehensive property and casualty insurance policy 
issued in accordance with Article 5.35 of this code that provides at 
least dwelling, personal property, liability, medical payment, and 
loss of use coverages.
	(b)  A county mutual insurance company or a farm mutual 
insurance company may not issue a residential fire insurance policy 
providing coverage for damage to a manufactured home unless the 
insurer first discloses in writing to the applicant for coverage 
that a more comprehensive property and casualty insurance policy 
may be available from another insurer.
	(c)  This article does not apply to renewal of an insurance 
policy.   
	(d)  The commissioner shall adopt rules to implement this 
article, including rules prescribing the form of the written 
rejection required by Subsection (a) of this article and the form of 
the written disclosure required by Subsection (b) of this article.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to an insurance policy that is delivered or issued for 
delivery on or after January 1, 2004.  A policy that is delivered or 
issued for delivery 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 that purpose.