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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring a coverage summary or other informational |
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material to accompany certain insurance policies; adding a |
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provision that 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 521, Insurance Code, is |
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amended by adding Section 521.006 to read as follows: |
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Sec. 521.006. COVERAGE SUMMARY TO ACCOMPANY CERTAIN |
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POLICIES. (a) In this section: |
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(1) "Insurer" means: |
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(A) an insurer, as defined by Section 38.002(a); |
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or |
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(B) a farm mutual insurance company. |
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(2) "Personal automobile insurance" and "residential |
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property insurance" have the meanings assigned by Section |
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38.002(a). |
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(b) This section applies to an insurer and an insurer's |
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agent. |
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(c) Each personal automobile or residential property |
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insurance policy delivered or issued for delivery in this state |
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shall include with the policy a coverage summary or other |
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informational material that helps the policyholder understand the |
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insurance policy. |
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(d) The coverage summary or other informational material |
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does not: |
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(1) alter, amend, or extend the coverage or terms or |
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conditions provided by the policy; or |
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(2) create a private right of action by an insured |
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against an insurer or an insurer's agent. |
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(e) The commissioner by rule may adopt requirements for a |
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coverage summary or other informational material required by this |
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section. |
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SECTION 2. This Act applies only to an insurance policy that |
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is delivered, issued for delivery, or renewed on or after January 1, |
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2016. A policy delivered, issued for delivery, or renewed before |
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January 1, 2016, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect January 1, 2016. |