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A BILL TO BE ENTITLED
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AN ACT
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relating to a disclosure regarding flood coverage under a |
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commercial or residential property insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 2002, Insurance Code, is |
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amended by adding Section 2002.103 to read as follows: |
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Sec. 2002.103. DISCLOSURE REGARDING FLOOD COVERAGE |
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REQUIRED. (a) In this section: |
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(1) "Commercial property insurance" means insurance |
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coverage against damage to or loss of real or tangible personal |
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property at a fixed location that is provided through: |
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(A) a commercial fire or allied lines insurance |
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policy; or |
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(B) as authorized by commissioner rule, a |
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commercial property insurance policy covering other perils or |
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providing other coverages or other lines of first party property |
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insurance. |
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(2) "Residential property insurance" means insurance |
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coverage against damage to or loss of residential real or tangible |
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personal property at a fixed location that is provided through: |
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(A) a homeowners insurance policy, including a |
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tenants insurance policy; |
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(B) a condominium owners insurance policy; |
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(C) a residential fire and allied lines insurance |
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policy; |
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(D) a farm and ranch insurance policy; or |
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(E) a farm and ranch owners insurance policy. |
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(b) This section applies to each insurer authorized to |
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engage in the business of commercial or residential property |
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insurance in this state, including a county mutual insurance |
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company, farm mutual insurance company, Lloyd's plan, and |
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reciprocal or interinsurance exchange. |
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(c) An insurer that issues a commercial or residential |
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property insurance policy that does not provide coverage against |
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loss caused by flooding shall include at the top of the policy's |
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declarations page the following statement: "WARNING: THIS POLICY |
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DOES NOT PROVIDE COVERAGE AGAINST LOSS CAUSED BY FLOODING." |
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SECTION 2. Section 2002.103, Insurance Code, as added 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, 2020. A policy |
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delivered, issued for delivery, or renewed before January 1, 2020, |
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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, 2019. |