By: Hancock  S.B. No. 442
         (In the Senate - Filed January 24, 2019; February 14, 2019,
  read first time and referred to Committee on Business & Commerce;
  April 10, 2019, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 9, Nays 0; April 10, 2019,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 442 By:  Hancock
 
 
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 C, Chapter 2002, Insurance Code, is
  amended by adding Section 2002.103 to read as follows:
         Sec. 2002.103.  DISCLOSURE REGARDING FLOOD COVERAGE
  REQUIRED. (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 insurance policy and 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 or renews a commercial or
  residential property insurance policy that does not provide
  coverage against loss caused by flooding shall include with the
  policy documents provided to the policyholder at the time the
  policy is issued or renewed the following statement:
         "Flood Insurance:  You may also need to consider the purchase
  of flood insurance.  Your insurance policy does not include
  coverage for damage resulting from a flood even if hurricane winds
  and rain caused the flood to occur.  Without separate flood
  insurance coverage, you may have uncovered losses caused by a
  flood.  Please discuss the need to purchase separate flood
  insurance coverage with your insurance agent or insurance company,
  or visit www.floodsmart.gov."
         (d)  The statement described by Subsection (c) must be
  conspicuous, as defined by Section 1.201, Business & Commerce Code.
         (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 2002.103, 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.
 
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