|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to required use by insurers of certain standard insurance |
|
policy forms for residential property insurance. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 2301.008, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 2301.008. ADOPTION AND USE OF STANDARD FORMS. (a) The |
|
commissioner may adopt standard insurance policy forms, printed |
|
endorsement forms, and related forms other than insurance policy |
|
forms and printed endorsement forms. |
|
(b) In [, that an insurer may use instead of the insurer's
|
|
own forms in] writing insurance subject to this subchapter other |
|
than residential property insurance, an insurer may use the |
|
standard forms adopted by the commissioner under Subsection (a) |
|
instead of the insurer's own forms. In writing residential |
|
property insurance, an insurer shall use the standard forms in the |
|
manner prescribed by Section 2301.0525. |
|
SECTION 2. Section 2301.052(b), Insurance Code, is amended |
|
to read as follows: |
|
(b) Subject to Section 2301.0525, an [An] insurer may |
|
continue to use an insurance policy form or endorsement |
|
promulgated, approved, or adopted under Article 5.06 or 5.35 before |
|
June 11, 2003, on written notification to the commissioner that the |
|
insurer will continue to use the form or endorsement. |
|
SECTION 3. Subchapter B, Chapter 2301, Insurance Code, is |
|
amended by adding Section 2301.0525 to read as follows: |
|
Sec. 2301.0525. USE OF CERTAIN STANDARD INSURANCE POLICY |
|
FORMS REQUIRED. (a) Each insurer that writes residential property |
|
insurance in this state: |
|
(1) shall use, without endorsements or exclusions, the |
|
Standard HO-A, Standard HO-B, and Standard HO-C forms promulgated |
|
by the department; and |
|
(2) may use: |
|
(A) alternative policy forms approved by the |
|
commissioner under Section 2301.006; or |
|
(B) standard insurance policy forms adopted by |
|
the commissioner under Section 2301.008. |
|
(b) An insurer may not deliver or issue for delivery in this |
|
state a residential property insurance policy unless the insurer |
|
informs all applicants for that insurance coverage, in the manner |
|
prescribed by commissioner rule, that an applicant otherwise |
|
qualified for that insurance coverage under this code may elect to |
|
obtain residential property insurance coverage under a standard |
|
insurance policy adopted by the commissioner under Section |
|
2301.008. |
|
SECTION 4. This Act applies only to an insurance policy |
|
delivered, issued for delivery, or renewed on or after January 1, |
|
2010. A policy delivered, issued for delivery, or renewed before |
|
January 1, 2010, 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 5. This Act takes effect September 1, 2009. |