By:  Jackson, Van de Putte                                        S.B. No. 581


A BILL TO BE ENTITLED
AN ACT


relating to an optional discount in homeowners' insurance premiums 
for the use of an insulating concrete form system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 5, Insurance Code, is 
amended by adding Article 5.33E to read as follows:
	Art. 5.33E.  OPTIONAL PREMIUM DISCOUNT FOR USE OF INSULATING 
CONCRETE FORM SYSTEM
	Sec. 1.  DEFINITIONS.  In this article:                                 
		(1)  "Applicant for insurance coverage" includes an 
applicant for new coverage and a policyholder renewing coverage.
		(2)  "Insurer" means an insurer authorized to write 
property and casualty insurance in this state.  The term includes:
			(A)  a county mutual insurance company;                               
			(B)  a farm mutual insurance company;                                 
			(C)  a Lloyd's plan; and                                              
			(D)  a reciprocal or interinsurance exchange.                         
		(3)  "Insulating concrete form system" means a building 
construction system primarily used to frame exterior walls in which 
polystyrene foam forms are placed in walls of a structure under 
construction and filled with concrete and steel reinforcing 
material to become a permanent part of the structure.
	Sec. 2.  OPTIONAL PREMIUM DISCOUNT.  (a)  On receipt of 
written verification from an applicant for insurance coverage, an 
insurer may grant a discount, in accordance with the rules adopted 
by the commissioner under this article, in the applicant's 
homeowners' insurance premiums for covered property that is 
constructed using an insulating concrete form system.
	(b)  Verification under this section must comply with the 
requirements prescribed under Section 3 of this article.
	Sec. 3.  RULES; INSPECTION.  (a)  The commissioner:                     
		(1)  shall adopt rules that prescribe the requirements 
for determining that a structure has been built using an insulating 
concrete form system; and
		(2)  may adopt other rules as necessary to implement 
this article.   
	(b)  If determined necessary by the commissioner, the rules 
adopted under this section may require an inspection of the 
property to be insured.  The applicant for insurance coverage shall 
pay the costs of any inspection required under this subsection.
	Sec. 4.  AMOUNT OF PREMIUM DISCOUNT.  (a)  The commissioner 
shall establish by rule the amount of the premium discount 
applicable under this article based on sound actuarial principles.
	(b)  The commissioner may approve a discount greater or less 
than the discount established under Subsection (a) of this section 
if:
		(1)  the insurer files the proposed discount with the 
department; and
		(2)  the commissioner determines that the proposed 
discount is actuarially justified.
	SECTION 2.  Article 5.33E, Insurance Code, as added by this 
Act, applies only to an insurance policy delivered, issued for 
delivery, or renewed on or after January 1, 2004.  A policy 
delivered, issued for delivery, or renewed 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.
	SECTION 3.  This Act takes effect September 1, 2003.