86R9983 SCL-F
 
  By: Lucio III H.B. No. 1942
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a disclosure regarding flood coverage under a
  commercial or residential property insurance policy.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 2002, Insurance Code, is
  amended by adding Section 2002.053 to read as follows:
         Sec. 2002.053.  REQUIRED DISCLOSURE REGARDING FLOOD
  COVERAGE. (a) In this section:
               (1)  "Commercial property insurance" has the meaning
  assigned by Section 2301.002, except that the term includes a
  commercial multiperil insurance policy that provides commercial
  property insurance coverage.
               (2)  "Residential property insurance" has the meaning
  assigned by Section 2301.002, except that the term includes a farm
  and ranch owners insurance policy.
         (b)  This section applies to each insurer authorized to
  engage in the business of commercial or residential property
  insurance in this state, including a county mutual insurance
  company, farm mutual insurance company, Lloyd's plan, and
  reciprocal or interinsurance exchange.
         (c)  An insurer that issues a commercial or residential
  property insurance policy that does not provide coverage against
  loss caused by flooding shall include at the top of the policy's
  declarations page the following statement:
         "This policy does not cover flood damage. Talk to your agent
  to find out if you need flood coverage."
         (d)  The statement described by Subsection (c) must be
  conspicuous, as defined by Section 1.201, Business & Commerce Code.
  An insurer shall provide the statement to a policyholder when the
  policy is issued and renewed.
         (e)  An insurer's failure to comply with this section does
  not invalidate any exclusion, including a flood exclusion, in an
  insurance policy subject to this section.
         SECTION 2.  Section 2002.053, Insurance Code, as added by
  this Act, applies 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 3.  This Act takes effect September 1, 2019.