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A BILL TO BE ENTITLED
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AN ACT
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relating to residential property insurance coverage for damages |
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arising out of a sanitary sewer system backup. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2002, Insurance Code, as |
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effective April 1, 2007, is amended by adding Section 2002.007 to |
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read as follows: |
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Sec. 2002.007. DAMAGE OR LOSS ARISING OUT OF SANITARY SEWER |
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BACKUP. An insurer that issues a residential property insurance |
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policy must provide coverage in the policy, or an option to purchase |
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additional coverage in connection with the policy, for property |
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damage or loss arising from the backup of a sanitary sewer connected |
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to the covered property. The insurer may not deny a claim for |
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damage or loss for which a governmental unit would be liable under |
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Section 101.021, Civil Practice and Remedies Code, if the damage or |
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loss would otherwise be covered under the policy. |
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SECTION 2. Section 2002.007, Insurance Code, as added by |
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this Act, applies only to an insurance policy that is delivered, |
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issued for delivery, or renewed on or after January 1, 2008. An |
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insurance policy delivered, issued for delivery, or renewed before |
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January 1, 2008, is governed by the law in effect immediately before |
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the effective date of this Act, and that law is continued in effect |
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for that purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |