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A BILL TO BE ENTITLED
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AN ACT
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relating to notice requirements before cancellation of certain |
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insurance coverage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Insurance Code, is amended |
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by adding Chapter 561 to read as follows: |
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CHAPTER 561. NOTICE REQUIRED BEFORE CANCELLATION OF CERTAIN |
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INSURANCE COVERAGE |
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Sec. 561.001. DEFINITIONS. In this chapter: |
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(1) "Personal automobile insurance" means motor |
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vehicle insurance coverage for the ownership, maintenance, or use |
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of a private passenger, utility, or miscellaneous type motor |
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vehicle, including a motor home, trailer, or recreational vehicle, |
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that is: |
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(A) owned or leased by one or more individuals; |
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and |
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(B) not used primarily for the delivery of goods, |
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materials, or services, other than for use in farm or ranch |
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operations. |
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(2) "Personal lines insurance" means an insurance |
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policy or contract that is issued to an insurance consumer. The |
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term includes: |
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(A) personal automobile insurance; |
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(B) residential property insurance; |
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(C) a whole life or term life insurance policy |
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issued to an insurance consumer; and |
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(D) an individual health insurance policy. |
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(3) "Residential property insurance" means insurance |
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coverage against loss to real or tangible personal property at a |
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fixed location that is provided through: |
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(A) a homeowners policy, including a tenants |
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policy; |
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(B) a condominium owners policy; or |
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(C) a residential fire and allied lines policy. |
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Sec. 561.002. APPLICABILITY. This chapter applies to each |
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policy or contract of personal lines insurance that is delivered, |
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issued for delivery, or renewed in this state. |
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Sec. 561.003. NOTIFICATION REGARDING CANCELLATION. (a) |
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Notwithstanding any other law, an insurer that delivers, issues for |
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delivery, or renews a policy or contract of personal lines |
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insurance in this state shall notify the policyholder of |
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cancellation of the policy or contract through a written statement |
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delivered by certified mail. Any notice concerning cancellation of |
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a personal lines insurance policy or contract required by any other |
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provision of this code or commissioner rule must comply with this |
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section. |
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(b) An insurer that violates Subsection (a) commits an |
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unfair or deceptive act or practice in the business of insurance |
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under Chapter 541. |
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Sec. 561.004. RULES. The commissioner shall adopt rules as |
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necessary to implement this chapter. |
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SECTION 2. This Act applies only to an insurance policy or |
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contract that is delivered, issued for delivery, or renewed on or |
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after January 1, 2010. A policy or contract delivered, issued for |
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delivery, or renewed before January 1, 2010, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |