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A BILL TO BE ENTITLED
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AN ACT
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relating to the amount of a large risk that is exempt from certain |
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property and casualty insurance policy form requirements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2301.004, Insurance Code, is amended to |
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read as follows: |
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Sec. 2301.004. EXEMPTION FOR LARGE RISKS. Sections |
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2301.006, 2301.007(a) and (b), and 2301.008 do not apply to forms |
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for use with an insured that has: |
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(1) total insured property values of $20 [$5] million |
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or more; |
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(2) total annual gross revenues of $100 [$10] million |
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or more; or |
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(3) a total premium of $100,000 [$25,000] or more for |
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property insurance, $100,000 [$25,000] or more for general |
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liability insurance, or $250,000 [$50,000] or more for multiperil |
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insurance. |
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SECTION 2. Section 2301.004, Insurance Code, as amended 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, 2026. A policy |
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delivered, issued for delivery, or renewed before January 1, 2026, |
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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, 2025. |