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A BILL TO BE ENTITLED
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AN ACT
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relating to required use by insurers of certain standard insurance |
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policy forms for residential property insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2301.008, Insurance Code, is amended to |
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read as follows: |
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Sec. 2301.008. ADOPTION AND USE OF STANDARD FORMS. (a) |
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Except as provided by Subsection (b), the [The] commissioner may |
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adopt standard insurance policy forms, printed endorsement forms, |
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and related forms other than insurance policy forms and printed |
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endorsement forms. |
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(b) The commissioner shall adopt standard insurance policy |
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forms, printed endorsement forms, and related forms other than |
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insurance policy forms and printed endorsement forms for use by an |
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insurer in writing residential property insurance. |
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(c) In [, that an insurer may use instead of the insurer's
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own forms in] writing insurance subject to this subchapter other |
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than residential property insurance, an insurer may use the |
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standard forms adopted by the commissioner under Subsection (a) |
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instead of the insurer's own forms. In writing residential |
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property insurance, an insurer shall use the standard forms in the |
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manner prescribed by Section 2301.0525. |
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SECTION 2. Section 2301.052(b), Insurance Code, is amended |
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to read as follows: |
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(b) Subject to Section 2301.0525, an [An] insurer may |
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continue to use an insurance policy form or endorsement |
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promulgated, approved, or adopted under Article 5.06 or 5.35 before |
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June 11, 2003, on written notification to the commissioner that the |
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insurer will continue to use the form or endorsement. |
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SECTION 3. Subchapter B, Chapter 2301, Insurance Code, is |
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amended by adding Section 2301.0525 to read as follows: |
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Sec. 2301.0525. USE OF CERTAIN STANDARD INSURANCE POLICY |
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FORMS REQUIRED. (a) Each insurer that writes residential property |
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insurance in this state shall use the standard insurance policy |
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forms adopted by the commissioner under Section 2301.008 for |
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residential property insurance and, subject to Subsection (b), may |
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also use alternative policy forms approved by the commissioner |
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under Section 2301.006. |
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(b) An insurer may not deliver or issue for delivery in this |
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state a residential property insurance policy unless the insurer |
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informs all applicants for that insurance coverage, in the manner |
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prescribed by commissioner rule, that an applicant otherwise |
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qualified for that insurance coverage under this code may elect to |
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obtain residential property insurance coverage under a standard |
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insurance policy adopted by the commissioner under Section |
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2301.008. |
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SECTION 4. 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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2010. A policy delivered, issued for delivery, or renewed before |
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January 1, 2010, 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 5. This Act takes effect September 1, 2009. |