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A BILL TO BE ENTITLED
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AN ACT
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relating to notice of punitive and exemplary damages coverage in |
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certain insurance policies or contracts; adding a provision that |
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may be subject to a criminal penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is |
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amended by adding Section 2301.011 to read as follows: |
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Sec. 2301.011. NOTICE OF PUNITIVE AND EXEMPLARY DAMAGES |
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COVERAGE FOR CERTAIN PERSONAL LINES. An issuer of a policy or |
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contract for personal automobile insurance, personal umbrella |
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insurance, or residential property insurance must disclose on the |
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policy's declarations page the coverage provided by the policy for |
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an award of punitive or exemplary damages against the insured. |
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SECTION 2. The change in law made by this Act applies only |
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to an insurance policy or contract delivered, issued for delivery, |
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or renewed on or after January 1, 2016. A policy or contract |
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delivered, issued for delivery, or renewed 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, 2015. |