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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. Title 10, Chapter 10, Subtitle D, Section |
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2002.001 is amended to read as follows: |
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Subchapter A. Policy Provisions |
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Section 2002.001. Endorsements reducing amount of coverage |
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An insurer may not use an endorsement to a policy form to which |
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Article 5.35, Subchapter B, Chapter 2301, applies that reduces the
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amount of coverage that would otherwise be provided under the |
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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 written |
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explanation of the changes made by the endorsement not later than |
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the 30th day before the date on which the policy expires. effective
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date of the change
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SECTION 2. Chapter 551, Section 105 is amended to read as |
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follows: |
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Section 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. |