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A BILL TO BE ENTITLED
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AN ACT
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relating to the continuation of title insurance coverage of certain |
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transferred property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2703.101(g), Insurance Code, is amended |
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to read as follows: |
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(g) For an owner's title insurance policy on residential |
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real property that is issued to an individual, the commissioner |
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shall adopt terms that provide for continuation of coverage subject |
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to rights and defenses against the original named insured for: |
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(1) a person who inherits the original named insured's |
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title on the original named insured's death; |
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(2) the original named insured's spouse who receives |
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title in a dissolution of marriage with the original named insured; |
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(3) the trustee or successor of a trust established by |
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the original named insured to whom the original named insured |
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transfers title after the date of policy; [or] |
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(4) the beneficiaries of a trust described by |
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Subdivision (3); |
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(5) a person who receives the original named insured's |
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title by gift; or |
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(6) an entity to which the original named insured |
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transfers title as a capital contribution to the entity [on the
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death of the original named insured]. |
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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 title insurance policy delivered or issued for delivery |
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before January 1, 2014, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |