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A BILL TO BE ENTITLED
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AN ACT
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relating to a disclosure of coverage for water damage in connection |
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with a 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. REQUIRED DISCLOSURE REGARDING COVERAGE |
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LIMITS FOR WATER DAMAGE. (a) In this section, "residential |
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property insurance" has the meaning assigned by Section 2301.002. |
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(b) Before accepting any premium or fee for a residential |
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property insurance policy, an agent or insurer, including a county |
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mutual insurance company, must make the following disclosure, |
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orally and in writing, to the applicant or insured: |
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WARNING: THIS POLICY CONTAINS IMPORTANT LIMITS ON COVERAGE FOR |
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WATER DAMAGE. WATER DAMAGE POLICY LIMITS CAN BE FOUND AT (PAGE OR |
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ENDORSEMENT). CAREFULLY REVIEW THESE LIMITS. |
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(c) Before accepting any premium or fee for a residential |
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property insurance policy, an agent or insurer, including a county |
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mutual insurance company, must receive a copy of the disclosure |
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described by Subsection (b) that is signed by the applicant or |
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insured. |
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(d) The agent or insurer shall require the applicant or |
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insured to confirm contemporaneously in writing the provision of |
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oral disclosure pursuant to Subsection (b). |
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SECTION 2. This Act applies only to an insurance policy that |
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is delivered, issued for delivery, or renewed on or after January 1, |
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2020. A policy delivered, issued for delivery, or renewed before |
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January 1, 2020, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |