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A BILL TO BE ENTITLED
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AN ACT
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relating to notice of coverage reduction on renewal of a |
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property/casualty insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2002.001, Insurance Code, is amended to |
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read as follows: |
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Sec. 2002.001. ENDORSEMENTS REDUCING AMOUNT OF COVERAGE. An |
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insurer may not use an endorsement to a policy form to which Article |
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5.35, Subchapter B, or Subchapter B, Chapter 2301, applies that |
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reduces [the amount of] coverage that would otherwise be provided |
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under the policy unless: |
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(1) the insured requests the endorsement; or |
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(2) the insurer provides the policyholder with a |
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written explanation of the change made by the endorsement not later |
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than the 30th day before the date on which the policy expires |
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[effective date of the change]. |
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SECTION 2. Section 551.105, Insurance Code, is amended to |
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read as follows: |
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Sec. 551.105. NONRENEWAL OF POLICIES; NOTICE REQUIRED. |
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Unless the insurer has mailed written notice of nonrenewal or |
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renewal with notice of change in coverage to the insured not later |
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than the 30th day before the date on which the insurance policy |
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expires, an insurer must renew an insurance policy, at the request |
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of the insured, on the expiration of the policy. |
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SECTION 3. This Act takes effect September 1, 2011. |