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.