By: Van de Putte, Barrientos S.B. No. 115
A BILL TO BE ENTITLED
AN ACT
relating to providing consumers with information regarding policy
forms for residential and farm and ranch property insurance
coverage.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 5, Insurance Code, is
amended by adding Article 5.45 to read as follows:
Art. 5.45. NOTICE ON RENEWAL OF CERTAIN POLICIES. (a) An
insurer, including a farm mutual insurance company, 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. Article 5.35, Insurance Code, is amended by
adding Subsection (k) to read as follows:
(k)(1) For any policy form and endorsements approved by the
commissioner under Subsections (a), (b), or (c) of this article,
the commissioner shall promulgate a comparison form for that
policy.
(2) The comparison form shall be developed with the
assistance of the office of public insurance counsel and with input
from the public and shall be designed to explain the features and
limitations of the policy compared to other approved policies. An
insurer using a policy form may be required to develop the
comparison form and submit it for approval by the commissioner. The
comparison form shall be made available by an insurer to anyone
inquiring about the policy and shall be made available by the
department via the Internet and other means as prescribed by the
commissioner.
(3) The comparison form shall be designed to be easily
read and understood in order to facilitate comparison and
understanding of the policy and must meet the requirements of
Subsection (h) of this article. At a minimum, the comparison form
shall show the features of the policy compared to the HO-B, HO-A,
and at least one other policy form widely in use in this state.
(4) The commissioner may adopt rules to carry out the
purposes of this subsection.
SECTION 3. This Act applies only to an insurance policy
renewed on or after the 30th day after the effective date of this
Act.
SECTION 4. 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.