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A BILL TO BE ENTITLED
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AN ACT
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relating to the provision of title insurance coverage by more than |
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one title insurance company in a single title insurance |
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transaction. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2704, Insurance Code, is |
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amended by adding Section 2704.005 to read as follows: |
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Sec. 2704.005. COINSURANCE OF RISK. (a) A title insurance |
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company authorized to engage in business in this state may not issue |
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a title insurance policy for a risk insured by one or more other |
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title insurance companies unless each other title insurance company |
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executes a coinsurance endorsement prescribed by the commissioner. |
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(b) The premium for the title insurance policy described by |
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Subsection (a) shall be determined for the total risk insured and |
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apportioned between or among the title insurance companies insuring |
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the risk based on the amount of risk insured by each insurer. |
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(c) The title insurance company issuing the title insurance |
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policy is responsible for collecting the title insurance premium |
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and distributing the premium as apportioned under Subsection (b). |
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SECTION 2. This Act applies only to a title insurance policy |
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that is delivered or issued for delivery on or after January 1, |
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2014. A policy delivered or issued for delivery before that date is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |