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A BILL TO BE ENTITLED
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AN ACT
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relating to business interruption insurance coverage for losses |
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arising from a pandemic. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is |
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amended by adding Section 2002.007 to read as follows: |
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Sec. 2002.007. BUSINESS INTERRUPTION INSURANCE: PANDEMIC |
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COVERAGE. (a) In this section, "business interruption insurance" |
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means insurance coverage against lost income and certain operating |
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expenses caused by the policyholder being forced to vacate the |
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policyholder's business because of a loss covered by the policy. |
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(b) This section applies to each insurer that provides |
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business interruption insurance in this state, including a county |
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mutual insurance company, farm mutual insurance company, Lloyd's |
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plan, and reciprocal or interinsurance exchange. |
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(c) Business interruption insurance must cover loss caused |
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by a pandemic, including loss caused by the order of a civil |
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authority made to prevent the spread of a pandemic, without regard |
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to whether the pandemic caused a direct physical loss to the |
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policyholder's property. |
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SECTION 2. The change in law made by this Act applies only |
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to an insurance policy that is delivered, issued for delivery, or |
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renewed on or after January 1, 2022. |
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SECTION 3. This Act takes effect September 1, 2021. |