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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirement that certain information accompany |
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residential property and personal automobile insurance documents. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 521, Insurance Code, is |
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amended by adding Sections 521.006 and 521.007 to read as follows: |
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Sec. 521.006. NOTICE TO ACCOMPANY RESIDENTIAL PROPERTY OR |
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PERSONAL AUTOMOBILE INSURANCE RENEWAL POLICY. (a) At the time a |
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residential property or personal automobile insurance policy is |
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renewed, the insurer shall provide the insured a copy of the renewal |
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policy. The policy must contain on the first page: |
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(1) a table that clearly lists the premium charged |
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under the policy before renewal, the new premium charged under the |
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renewal policy, and the percentage change, if any, between these |
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amounts; and |
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(2) an explanation, in plain language, of any changes |
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in the coverage under the renewal policy. |
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(b) If there is an increase in the premium or change in the |
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coverage under the renewal policy, the first page of the renewal |
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policy must contain a statement advising the consumer of the |
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department's website that is designated by the department to help |
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consumers compare premiums and coverages of different insurers' |
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policies. |
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(c) The commissioner shall adopt appropriate wording for |
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the notices. |
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(d) This section and Section 521.007 apply to personal |
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automobile insurance or residential property insurance issued by an |
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insurance company, a reciprocal or interinsurance exchange, a |
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mutual insurance company, a capital stock company, a county mutual |
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insurance company, a Lloyd's plan, or another legal entity |
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authorized to write residential property insurance or personal |
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automobile insurance in this state, including an affiliate, as |
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described by this code, that is authorized to write residential |
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property insurance, the Texas Windstorm Insurance Association |
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under Chapter 2210, and the FAIR Plan Association under Chapter |
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2211. |
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Sec. 521.007. STATEMENT OF DEDUCTIBLE ON RESIDENTIAL |
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PROPERTY OR PERSONAL AUTOMOBILE INSURANCE DOCUMENT. An insurance |
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policy or other document related to residential property or |
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personal automobile insurance coverage that expresses a deductible |
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as a percentage of the coverage amount must state the actual dollar |
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amount of the deductible next to the percentage. |
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SECTION 2. This Act applies only to an insurance policy |
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delivered, issued for delivery, or renewed on or after January 1, |
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2012. A policy delivered, issued for delivery, or renewed before |
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January 1, 2012, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |