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.