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A BILL TO BE ENTITLED
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AN ACT
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relating to a disclosure regarding flood coverage under a |
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residential property insurance policy for areas susceptible to |
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flooding. |
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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. FLOOD COVERAGE DISCLOSURE REQUIRED FOR |
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FLOOD-PRONE AREAS. (a) In this section, "residential property |
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insurance" means insurance coverage against damage to or loss of |
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residential real or tangible personal property at a fixed location |
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that is provided through: |
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(1) a homeowners insurance policy, including a tenants |
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insurance policy; |
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(2) a condominium owners insurance policy; |
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(3) a residential fire and allied lines insurance |
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policy; |
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(4) a farm and ranch insurance policy; or |
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(5) a farm and ranch owners insurance policy. |
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(b) This section applies to each insurer authorized to |
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engage in the business of residential property insurance in this |
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state, including a county mutual insurance company, farm mutual |
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insurance company, Lloyd's plan, and reciprocal or interinsurance |
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exchange. |
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(c) On May 1 of each year, an insurer that issues a |
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residential property insurance policy covering property in an area |
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susceptible to flooding as designated by commissioner rule shall |
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provide written notice to the insured: |
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(1) indicating whether the policy provides coverage |
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against loss caused by flooding; and |
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(2) explaining the importance of flood coverage. |
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(d) The commissioner by rule shall prescribe the form and |
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content of the notice required by Subsection (c). |
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SECTION 2. Section 2002.103, Insurance Code, as added by |
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this Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after January 1, 2020. A policy |
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delivered, issued for delivery, or renewed before January 1, 2020, |
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is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |