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A BILL TO BE ENTITLED
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AN ACT
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relating to the cancellation of homeowners insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 551.104(g), Insurance Code, is amended |
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to read as follows: |
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(g) An insurer may cancel any insurance policy other than a |
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personal automobile [or homeowners] insurance policy if the policy |
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has been in effect less than 90 days. An insurer may cancel a |
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personal automobile insurance policy if the policy has been in |
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effect less than 60 days. [An insurer may cancel a homeowners
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insurance policy if the policy has been in effect less than 60 days
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and:
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[(1) the insurer identifies a condition that:
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[(A) creates an increased risk of hazard;
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[(B)
was not disclosed in the application for
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insurance coverage; and
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[(C) is not the subject of a prior claim; or
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[(2)
before the effective date of the policy, the
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insurer does not accept a copy of a required inspection report that:
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[(A)
was completed by an inspector who is
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licensed by the Texas Real Estate Commission or who is otherwise
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authorized to perform inspections; and
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[(B)
is dated not earlier than the 90th day
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before the effective date of the policy.] |
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SECTION 2. Section 551.104(h), Insurance Code, is repealed. |
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SECTION 3. The change in law made by this Act applies only |
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to a homeowners insurance policy that is delivered, issued for |
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delivery, or renewed on or after January 1, 2012. A homeowners |
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insurance policy that is delivered, issued for delivery, or renewed |
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before January 1, 2012, is covered by the law in effect at the time |
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the policy was delivered, issued for delivery, or renewed, and that |
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law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |