By: Bonnen of Galveston (Senate Sponsor - Taylor) H.B. No. 1900
         (In the Senate - Received from the House April 23, 2019;
  April 24, 2019, read first time and referred to Committee on
  Business & Commerce; May 6, 2019, reported favorably by the
  following vote:  Yeas 8, Nays 0; May 6, 2019, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to replacement cost coverage in policies issued by the
  Texas Windstorm Insurance Association.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 2210.207(c) and (d), Insurance Code,
  are amended to read as follows:
         (c)  If, on the effective date of an association policy [at
  the time of loss], the total amount of insurance applicable to a
  dwelling is equal to 80 percent or more of the full replacement cost
  of the dwelling or equal to the maximum amount of insurance
  otherwise available through the association, coverage applicable
  to the dwelling under the policy is extended to include the full
  cost of repair or replacement, without a deduction for
  depreciation.
         (d)  If, on the effective date of an association policy [at
  the time of loss], the total amount of insurance applicable to a
  dwelling is equal to less than 80 percent of the full replacement
  cost of the dwelling and less than the maximum amount of insurance
  available through the association, liability for loss under the
  policy may not exceed the replacement cost of the part of the
  dwelling that is damaged or destroyed, less depreciation.
         SECTION 2.  Subchapter L-1, Chapter 2210, Insurance Code, is
  amended by adding Section 2210.5741 to read as follows:
         Sec. 2210.5741.  REPLACEMENT COST COVERAGE CLAIM
  PROCESSING. (a)  After the association accepts coverage for a
  claim in full or in part, a claimant whose association policy
  includes replacement cost coverage for the claim may request the
  replacement cost payment by submitting to the association
  documentation of the cost and completion of the repairs related to
  the claim not later than the 545th day after the date the claimant
  receives a notification under Section 2210.573(d)(1) or (2).
         (b)  Not later than the 30th day after the date the
  association receives documentation under Subsection (a), the
  association shall provide the claimant, in writing, notification
  of:
               (1)  the amount of the replacement cost payment the
  association will make; and
               (2)  the deadline to request appraisal under this
  section.
         (c)  The association shall pay the amount described by
  Subsection (b)(1) not later than the 10th day after the date
  notification is provided under Subsection (b).
         (d)  If a claimant has not demanded appraisal with respect to
  a claim under Section 2210.574 and the claimant disputes the
  replacement cost amount the association will pay with respect to
  the claim, the claimant may demand appraisal of the replacement
  cost amount not later than the 30th day after the date the claimant
  receives the notification under Subsection (b).  A claimant may
  demand appraisal under this section without regard to whether all
  repairs related to the claim are complete.
         (e)  Except with respect to the deadlines applicable to an
  appraisal under this section, the appraisal under this section
  shall be conducted in the same manner as an appraisal demanded under
  Section 2210.574.
         (f)  If a claimant's association policy includes replacement
  cost coverage, the written notification provided to the claimant
  under Section 2210.573(d)(1) or (2) must notify the claimant of the
  deadlines under this section for:
               (1)  completing repairs and submitting documentation
  under Subsection (a); and
               (2)  demanding appraisal under this section.
         SECTION 3.  Section 2210.581, Insurance Code, is amended by
  amending Subsections (a) and (b) and adding Subsection (d) to read
  as follows:
         (a)  Subject to Subsection (b), the commissioner, on a
  showing of good cause, may by rule extend any deadline established
  under this subchapter and set the number of days by which the
  deadline is extended.
         (b)  The [With reference to claims filed during a particular
  catastrophe year, the] extension of deadlines under Subsection (a)
  related to claims arising from a particular storm may not exceed 120
  days in the aggregate for deadlines applicable only to the
  association.  The limitation on extensions under this subsection
  does not apply to the extension of a deadline imposed on a claimant,
  or on both a claimant and the association.
         (d)  The commissioner shall adopt rules as necessary to
  implement this section. Section 2001.0045, Government Code, does
  not apply to rules adopted under this section.
         SECTION 4.  The changes in law made by this Act apply only to
  an insurance policy delivered, issued for delivery, or renewed on
  or after January 1, 2020. A policy delivered, issued for delivery,
  or renewed before January 1, 2020, is governed by the law as it
  existed immediately before the effective date of this Act, and that
  law is continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2019.
 
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