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A BILL TO BE ENTITLED
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AN ACT
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relating to a residential property insurance premium discount for |
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certain dwellings. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2006, Insurance Code, is amended by |
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adding Subchapter D to read as follows: |
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SUBCHAPTER D. REQUIRED PREMIUM DISCOUNT FOR CERTAIN DWELLINGS |
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Sec. 2006.151. DEFINITIONS. In this subchapter: |
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(1) "Applicant" includes: |
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(A) an applicant for new insurance coverage; and |
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(B) a policyholder renewing insurance coverage. |
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(2) "Residential property insurance" has the meaning |
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assigned by Section 2251.002. |
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(3) "Insurer" means: |
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(A) an insurer subject to Chapter 2251; |
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(B) the Texas Windstorm Insurance Association; |
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and |
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(C) the FAIR Plan Association. |
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Sec. 2006.152. REQUIRED PREMIUM DISCOUNT. (a) The |
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commissioner by rule shall authorize an insurer to grant to an |
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applicant for residential property insurance a discount on the |
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applicant's premium for an insured dwelling that is certified by |
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the Institute for Business and Home Safety (IBHS) as an IBHS |
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Fortified Home for the geographic location in which the dwelling is |
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located or by a similar organization as meeting similar home |
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fortification standards for the geographic location in which the |
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dwelling is located if the commissioner determines that the |
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standards being certified reflect a reduction in the risk being |
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insured under the policy. |
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(b) The commissioner shall prescribe requirements for a |
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policy applicant to submit verification of the certification of the |
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dwelling to the insurer. |
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Sec. 2006.153. DWELLING INSPECTION. (a) The rules adopted |
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under this subchapter may authorize an insurer to conduct an |
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inspection of a dwelling to be insured to confirm that the dwelling |
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meets the applicable standards for the geographic location in which |
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the dwelling is located. |
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(b) The insurer shall pay the costs of an inspection under |
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this section. |
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Sec. 2006.154. PREMIUM DISCOUNT; EXCEPTION. (a) The |
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commissioner by rule shall establish the premium discount under |
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this subchapter based on sound actuarial principles. The |
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commissioner may vary the discount based on the coverage offered or |
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excluded under the insurance policy, including windstorm and hail |
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coverage. |
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(b) The commissioner may approve a premium discount greater |
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or less than the discount established under Subsection (a) if: |
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(1) the insurer files the proposed discount with the |
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department; and |
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(2) the commissioner determines that the proposed |
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discount is actuarially justified. |
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Sec. 2006.155. RULES. The commissioner may adopt rules as |
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necessary to implement this subchapter in addition to other rules |
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specifically required to be adopted under this chapter. |
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SECTION 2. Not later than December 1, 2009, the |
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commissioner of insurance shall adopt rules required by Subchapter |
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D, Chapter 2006, Insurance Code, as added by this Act. |
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SECTION 3. This Act applies only to a residential property |
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insurance policy delivered, issued for delivery, or renewed on or |
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after January 1, 2010. A policy delivered, issued for delivery, or |
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renewed before January 1, 2010, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2009. |