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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation and regulation of certain consolidated |
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insurance programs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 2, Insurance Code, is amended by adding |
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Subtitle C to read as follows: |
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SUBTITLE C. PROGRAMS AFFECTING MULTIPLE LINES OF INSURANCE |
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CHAPTER 151. CONSOLIDATED INSURANCE PROGRAMS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 151.001. DEFINITIONS. In this chapter: |
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(1) "Consolidated insurance program" means a program |
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under which a principal provides general liability insurance |
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coverage, workers' compensation insurance coverage, or both that |
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are incorporated into an insurance program for a single |
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construction project or multiple construction projects. |
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(2) "Construction project" means construction, |
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remodeling, maintenance, or repair of improvements to real |
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property. The term includes the immediate construction location |
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and areas incidental and necessary to the work as defined in the |
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construction contract documents. A construction project under this |
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chapter does not include a single-family home, duplex, triplex, or |
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quadruplex. |
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(3) "Contractor" means any person who has entered into |
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a construction contract or a professional services contract and is |
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enrolled in the consolidated insurance program. |
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(4) "Insurer" means an insurance company, including a |
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mutual insurance company or a capital stock company, a reciprocal |
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or interinsurance exchange, a Lloyd's plan, or another legal entity |
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authorized to engage in the business of general liability insurance |
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or workers' compensation insurance in this state. The term |
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includes an eligible surplus lines insurer. |
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(5) "Principal" means the person who procures the |
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insurance policy under a consolidated insurance program. |
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Sec. 151.002. RULES. The commissioner shall adopt rules as |
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necessary to implement and enforce this chapter. |
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[Sections 151.003-151.050 reserved for expansion] |
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SUBCHAPTER B. GENERAL REQUIREMENTS |
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Sec. 151.051. DURATION OF GENERAL LIABILITY COVERAGE. A |
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consolidated insurance program that provides general liability |
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insurance coverage must provide completed operations insurance |
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coverage for a policy period of not less than three years. |
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[Sections 151.052-151.100 reserved for expansion] |
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SUBCHAPTER C. NONWAIVER |
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Sec. 151.101. NONWAIVER. A provision of this chapter may |
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not be waived by contract or otherwise. |
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SECTION 2. Chapter 151, Insurance Code, as added by this |
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Act, applies only to a new or renewed consolidated insurance |
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program for a construction project that begins on or after January |
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1, 2012. A consolidated insurance program for a construction |
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project that begins before January 1, 2012, 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, 2011. |
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* * * * * |