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A BILL TO BE ENTITLED
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AN ACT
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relating to the disclosure of certain information under a |
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consolidated insurance program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 151, Insurance Code, is |
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amended by adding Section 151.003 to read as follows: |
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Sec. 151.003. REQUIRED DISCLOSURE. (a) An insurer or the |
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insurer's agent shall timely provide information to a contractor or |
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potential contractor of a construction project that is covered |
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under or that may be covered under an insurance policy under a |
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consolidated insurance program. |
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(b) The commissioner shall adopt rules establishing |
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requirements governing the provision of information under |
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Subsection (a). The rules must require an insurer or the insurer's |
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agent to provide: |
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(1) within a reasonable time, sufficient information |
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to a potential bidder for a contract on a construction project to |
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meaningfully compare the bidder's own insurance program with the |
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coverages, exclusions, limits, deductibles, credits, and costs of |
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the coverage provided under the consolidated insurance program; |
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(2) before the construction contract is entered into, |
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and with sufficient time for a prudent businesslike analysis, |
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detailed information to a successful bidder on: |
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(A) the conditions, insuring agreement, |
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coverages, exclusions, deductibles, and limits of each policy |
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issued or to be issued under the consolidated insurance program; |
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(B) the claims processing procedures and other |
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administrative policies or procedures under the consolidated |
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insurance program; and |
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(C) the methods to be used in calculating costs, |
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deductibles, and credits under the consolidated insurance program; |
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and |
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(3) on the contractor's enrollment in the consolidated |
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insurance program, a copy to each contractor of: |
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(A) each policy under the consolidated insurance |
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program, including any renewal or replacement policy; or |
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(B) if the insurer has not issued the policy, a |
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copy of an insurance binder and all related endorsements. |
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SECTION 2. Section 151.003, Insurance Code, as added by |
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this Act, applies only to a construction contract that is entered |
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into on or after January 1, 2016. A construction contract that is |
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entered into before January 1, 2016, is governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |