78R954 KCR-D

By:  Burnam                                                       H.B. No. 3390



A BILL TO BE ENTITLED

AN ACT

relating to the prompt processing of mold or water claims.                    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 1, Article 21.55, Insurance Code, is 
amended by adding Subdivisions (6) and (7) to read as follows:
		(6)  "Mold" means any form of multicellular fungi that 
lives on plant or animal matter and in indoor environments.
		(7)  "Residential property insurance" means insurance 
issued by an insurer against damage to or loss of a dwelling or its 
contents provided in a homeowner's insurance policy, residential 
fire and allied lines insurance policy, farm and ranch insurance 
policy, or farm and ranch owners insurance policy.
	SECTION 2.  Section 2, Article 21.55, Insurance Code, is 
amended by amending Subsection (a) and adding Subsection (a-1) to 
read as follows:
	(a)  Except as provided by Subsection (a-1) [(d)] of this 
section, an insurer shall, not later than the 15th day after receipt 
of notice of a claim or the 30th business day if the insurer is an 
eligible surplus lines insurer:
		(1)  acknowledge receipt of the claim;                                        
		(2)  commence any investigation of the claim;  and                            
		(3)  request from the claimant all items, statements, 
and forms that the insurer reasonably believes, at that time, will 
be required from the claimant.  Additional requests may be made if 
during the investigation of the claim such additional requests are 
necessary.
	(a-1)  An insurer shall, not later than the second business 
day after receipt of notice of a claim under a residential property 
insurance policy for damage or loss to covered property as a result 
of mold or water:
		(1)  acknowledge receipt of the claim;                                 
		(2)  commence any investigation of the claim;  and                     
		(3)  request from the claimant all items, statements, 
and forms that the insurer reasonably believes, at that time, will 
be required from the claimant.  Additional requests may be made if 
during the investigation of the claim the additional requests are 
necessary.
	SECTION 3.  This Act takes effect September 1, 2003, and 
applies only to a residential property insurance policy  that is 
delivered, issued for delivery, or renewed after January 1, 2004.  A 
policy delivered, issued for delivery, or renewed before January 1, 
2004, is governed by the law as it existed before the effective date 
of this Act, and that law is continued in effect for that purpose.