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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. Subchapter L-1, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.5741 to read as follows: |
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Sec. 2210.5741. REPLACEMENT COST COVERAGE CLAIM |
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PROCESSING. (a) After the association accepts coverage for a claim |
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in full or in part, a claimant whose association policy includes |
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replacement cost coverage for the claim may request the replacement |
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cost payment by submitting to the association documentation of the |
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cost and completion of the repairs related to the claim not later |
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than the 545th day after the date the claimant receives a |
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notification under Section 2210.573(d)(1) or (2). |
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(b) Not later than the 30th day after the date the |
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association receives documentation under Subsection (a), the |
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association shall provide the claimant, in writing, notification |
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of: |
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(1) the amount of the replacement cost payment the |
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association will make; and |
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(2) the deadline to request appraisal under this |
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section. |
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(c) The association shall pay the amount described by |
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Subsection (b)(1) not later than the 10th day after the date |
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notification is provided under Subsection (b). |
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(d) If a claimant has not demanded appraisal with respect to |
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a claim under Section 2210.574 and the claimant disputes the |
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replacement cost amount the association will pay with respect to |
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the claim, the claimant may demand appraisal of the replacement |
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cost amount not later than the 30th day after the date the claimant |
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receives the notification under Subsection (b). A claimant may |
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demand appraisal under this section without regard to whether all |
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repairs related to the claim are complete. |
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(e) Except with respect to the deadlines applicable to an |
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appraisal under this section, the appraisal under this section |
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shall be conducted in the same manner as an appraisal demanded under |
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Section 2210.574. |
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(f) If a claimant's association policy includes replacement |
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cost coverage, the written notification provided to the claimant |
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under Section 2210.573(d)(1) or (2) must notify the claimant of the |
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deadlines under this section for: |
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(1) completing repairs and submitting documentation |
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under Subsection (a); and |
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(2) demanding appraisal under this section. |
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SECTION 3. Section 2210.581, Insurance Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (d) to read |
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as follows: |
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(a) Subject to Subsection (b), the commissioner, on a |
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showing of good cause, may by rule extend any deadline established |
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under this subchapter and set the number of days by which the |
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deadline is extended. |
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(b) The [With reference to claims filed during a particular
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catastrophe year, the] extension of deadlines under Subsection (a) |
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related to claims arising from a particular storm may not exceed 120 |
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days in the aggregate for deadlines applicable only to the |
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association. The limitation on extensions under this subsection |
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does not apply to the extension of a deadline imposed on a claimant, |
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or on both a claimant and the association. |
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(d) The commissioner shall adopt rules as necessary to |
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implement this section. Section 2001.0045, Government Code, does |
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not apply to rules adopted under this section. |
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SECTION 4. The changes in law made by this Act apply only to |
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an insurance policy delivered, issued for delivery, or renewed on |
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or after January 1, 2020. A policy delivered, issued for delivery, |
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or renewed before January 1, 2020, 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 5. This Act takes effect September 1, 2019. |