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A BILL TO BE ENTITLED
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AN ACT
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relating to reducing coverage for certain insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2002, Insurance Code, is amended by |
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amending Section 2002 to read as follows: |
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Sec. 2002.001. NOTICE REQUIRED FOR ENDORSEMENTS REDUCING |
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AMOUNT OF COVERAGE. |
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An insurer may not reduce coverage or use an |
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endorsement to a policy form to which Article 5.35, Subchapter B, or |
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Subchapter B, Chapter 2301, applies that reduces coverage that |
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would otherwise be provided under the policy unless: |
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(1) the insured requests the reduction in coverage or change
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made by the endorsement; or |
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(2) the insurer provides the policyholder with a written |
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explanation of the reduction in coverage change made by the |
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endorsement not later than the 30th day before the day on which the |
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policy expires. |
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SECTION 2. This Act takes effect September 1, 2013. |