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A BILL TO BE ENTITLED
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AN ACT
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relating to title insurance coverage for minerals and surface |
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damage resulting from mineral extraction and development. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 2703, Insurance Code, is |
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amended by adding Section 2703.0515 to read as follows: |
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Sec. 2703.0515. CERTAIN REQUIREMENTS PROHIBITED. (a) A |
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title insurance company is not required to offer or provide in |
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connection with a title insurance policy an endorsement insuring a |
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loss from damage resulting from the use of the surface of the land |
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for the extraction or development of coal, lignite, oil, gas, or |
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another mineral if the policy includes a general exception or |
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exclusion from coverage a loss from damage resulting from the use of |
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the surface of the land for the extraction or development of coal, |
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lignite, oil, gas, or another mineral. |
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(b) In this section, "general exception or exclusion" means |
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a provision in a title insurance policy or other title insuring form |
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that provides that title insurance coverage under the policy or |
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form: |
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(1) is subject to, and the title insurer does not |
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insure title to, and excepts from the description of the covered |
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property, coal, lignite, oil, gas, and other minerals in and under |
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and that may be produced from the covered property, together with |
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related rights, privileges, and immunities; or |
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(2) does not cover a lease, grant, exception, or |
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reservation of coal, lignite, oil, gas, or other minerals, or |
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related rights, privileges, and immunities, appearing in the public |
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records. |
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SECTION 2. This Act applies only to a title insurance policy |
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that is delivered or issued for delivery on or after January 1, |
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2012. A policy delivered or issued for delivery before January 1, |
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2012, is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |