By: Smithee H.B. No. 3604
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to enforcement of certain insurance provisions in
  construction contracts.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is
  amended by adding Article 21.75 to read as follows:
         Art. 21.75.  INSURANCE AND RISK TRANSFER AGREEMENTS IN
  CERTAIN CONSTRUCTION CONTRACTS
         Sec. 1.  DEFINITIONS. In this article:
               (1)  "Additional insured" means a person covered under
  another person's insurance policy for an occurrence caused by
  something other than the sole negligence of the named insured under
  the policy, or an indemnitor under an indemnification agreement.
               (2)  "Construction contract" means a contract or
  agreement made or entered into by an owner, contractor,
  subcontractor, or supplier concerning the construction,
  alteration, remodeling, repair, or maintenance of a building,
  structure, appurtenance, or other improvement to or on real
  property, including moving, demolition, and excavation connected
  with the real property.
               (3)  "Construction insurance provision" means a
  covenant, promise, agreement, or understanding contained in a
  construction contract, or in an agreement collateral to or
  affecting a construction contract, that:
                     (A)  requires a person to provide insurance
  coverage;
                     (B)  provides insurance coverage; or
                     (C)  requires insurance coverage for an
  indemnitee under an indemnification agreement.
         Sec. 2.  CERTAIN INSURANCE PROVISIONS UNENFORCEABLE.  (a)  A
  construction insurance provision is void and unenforceable to the
  extent that the provision requires that:
               (1)  a person, including an indemnitee under an
  indemnification agreement, be an additional insured; or
               (2)  the insurance policy be endorsed to provide a
  waiver of subrogation.
         (b)  An insurance policy provision or endorsement that
  provides for an additional insured or a waiver of subrogation in
  contravention of this article is void.
         Sec. 3.  WAIVER PROHIBITED. The provisions of this article
  may not be waived by contract or otherwise.
         Sec. 4.  APPLICABILITY OF OTHER LAW. This article prevails
  over any other law that conflicts with or is inconsistent with this
  article.
         SECTION 2.  The changes in law made by this Act apply only to
  a contract or agreement entered into on or after the effective date
  of this Act.  A contract or agreement entered into before the
  effective date of this Act is governed by the applicable law in
  effect immediately before the effective date of this Act, and that
  law is continued in effect for that purpose.
  SECTION 3.  This Act takes effect September 1, 2011.