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A BILL TO BE ENTITLED
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AN ACT
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relating to replacement cost coverage in policies issued by the |
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Texas Windstorm Insurance Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2210.207(c) and (d), Insurance Code, |
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are amended to read as follows: |
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(c) If, on the effective date of an association policy [at
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the time of loss], the total amount of insurance applicable to a |
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dwelling is equal to 80 percent or more of the full replacement cost |
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of the dwelling or equal to the maximum amount of insurance |
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otherwise available through the association, coverage applicable |
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to the dwelling under the policy is extended to include the full |
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cost of repair or replacement, without a deduction for |
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depreciation. |
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(d) If, on the effective date of an association policy [at
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the time of loss], the total amount of insurance applicable to a |
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dwelling is equal to less than 80 percent of the full replacement |
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cost of the dwelling and less than the maximum amount of insurance |
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available through the association, liability for loss under the |
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policy may not exceed the replacement cost of the part of the |
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dwelling that is damaged or destroyed, less depreciation. |
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SECTION 2. Section 2210.207, Insurance Code, as amended by |
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this Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after January 1, 2018. A policy |
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delivered, issued for delivery, or renewed before January 1, 2018, |
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is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |