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A BILL TO BE ENTITLED
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AN ACT
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relating to disclosure of insurance coverage for certain expenses |
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incurred because of compliance with an emergency evacuation order. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle D, Title 10, Insurance Code, is amended |
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by adding Chapter 2009 to read as follows: |
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CHAPTER 2009. DISCLOSURE REGARDING COVERAGE FOR EXPENSES INCURRED |
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BECAUSE OF COMPLIANCE WITH EMERGENCY EVACUATION ORDER |
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Sec. 2009.001. DEFINITIONS. In this chapter: |
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(1) "Disaster" has the meaning assigned by Section |
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418.004, Government Code. |
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(2) "Emergency evacuation order" means an official |
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statement issued by the governing body of this state or a political |
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subdivision of this state, including a declaration of a local |
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disaster under Section 418.108, Government Code, to recommend the |
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evacuation of all or part of the population of an area stricken with |
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or threatened with a disaster. |
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(3) "Insurer" means an insurer authorized to write |
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residential property insurance, including a county mutual |
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insurance company, a farm mutual insurance company, a Lloyd's |
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plan, and a reciprocal or interinsurance exchange. The term |
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includes the FAIR Plan Association. |
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(4) "Residential property insurance" means property |
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or property and casualty insurance covering a dwelling, including: |
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(A) homeowners insurance; |
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(B) residential fire and allied lines insurance; |
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(C) farm and ranch insurance; and |
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(D) farm and ranch owners insurance. |
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Sec. 2009.002. DISCLOSURE TO POLICYHOLDER REQUIRED. (a) An |
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insurer that issues a residential property insurance policy in this |
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state shall disclose to each policyholder in writing: |
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(1) whether the coverage provided under the policy |
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includes coverage for any additional living expenses incurred by |
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the policyholder because of compliance by the policyholder with an |
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emergency evacuation order; and |
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(2) if coverage for the additional living expenses is |
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provided, the limits applicable to that coverage. |
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(b) An insurer shall provide the disclosure in a statement |
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separate from the policy on issuance and on renewal of the policy. |
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Sec. 2009.003. COMMISSIONER RULES. The commissioner by |
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rule shall prescribe the form and content of the disclosure notice |
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required under Section 2009.002. |
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SECTION 2. This Act applies only to an insurance policy |
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delivered, issued for delivery, or renewed on or after January 1, |
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2008. A policy delivered, issued for delivery, or renewed before |
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January 1, 2008, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |