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A BILL TO BE ENTITLED
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AN ACT
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relating to coverage under residential property insurance policies |
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for certain losses incurred because of compliance with an emergency |
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evacuation order. |
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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, is |
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amended by adding Section 2002.007 to read as follows: |
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Sec. 2002.007. COVERAGE FOR LOSSES INCURRED AS A RESULT OF |
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COMPLIANCE WITH EMERGENCY EVACUATION ORDER. (a) In this section: |
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(1) "Disaster" means the occurrence or imminent threat |
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of widespread or severe damage, injury, or loss of life or property |
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that results from a natural or man-made cause, including fire, |
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flood, earthquake, wind, storm, wave action, oil spill or other |
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water contamination, volcanic activity, epidemic, air |
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contamination, blight, drought, infestation, explosion, riot, |
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hostile military or paramilitary action, or other public calamity |
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requiring emergency action, or an energy emergency. |
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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 to recommend the evacuation of all or part |
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of the population of an area stricken or threatened with a disaster. |
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The term includes a declaration of local disaster under Section |
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418.108, Government Code. |
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(3) "Insurer" means an insurer authorized to write |
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residential property insurance, including: |
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(A) a county mutual insurance company; |
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(B) a farm mutual insurance company; |
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(C) a Lloyd's plan; and |
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(D) a reciprocal or interinsurance exchange. |
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(4) "Political subdivision" means a county, |
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municipality, special district, or authority of this state. |
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(5) "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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(b) A residential property insurance policy delivered or |
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issued for delivery by an insurer must provide coverage that |
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complies with this section for loss incurred as a result of |
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compliance with an emergency evacuation order applicable to the |
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covered property. |
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(c) The coverage required by this section must provide a |
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payment for each day or part of a day that the evacuation order is in |
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effect. The commissioner by rule shall determine the terms and |
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conditions and applicable limits of the required coverage and the |
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amount of the required payment. |
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SECTION 2. This Act applies only to an insurance policy that |
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is delivered, issued for delivery, or renewed on or after the 90th |
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day after the effective date of this Act. A policy that is |
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delivered, issued for delivery, or renewed before the 90th day |
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after the effective date of this Act is governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect 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 on the 91st day after the last day of the |
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legislative session. |