Bill Text: TX SB249 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to business interruption insurance coverage for losses arising from a pandemic.
Sponsorship: Partisan Bill (Republican 2)
Status: (Introduced - Dead) 2021-03-03 - Referred to Business & Commerce [SB249 Detail]
Download: Texas-2021-SB249-Introduced.html
| 87R2288 JES-D | ||
| By: Schwertner | S.B. No. 249 | |
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| relating to business interruption insurance coverage for losses | ||
| arising from a pandemic. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is | ||
| amended by adding Section 2002.007 to read as follows: | ||
| Sec. 2002.007. BUSINESS INTERRUPTION INSURANCE: PANDEMIC | ||
| COVERAGE. (a) In this section, "business interruption insurance" | ||
| means insurance coverage against lost income and certain operating | ||
| expenses caused by the policyholder being forced to vacate the | ||
| policyholder's business because of a loss covered by the policy. | ||
| (b) This section applies to each insurer that provides | ||
| business interruption insurance in this state, including a county | ||
| mutual insurance company, farm mutual insurance company, Lloyd's | ||
| plan, and reciprocal or interinsurance exchange. | ||
| (c) Business interruption insurance must cover loss caused | ||
| by a pandemic, including loss caused by the order of a civil | ||
| authority made to prevent the spread of a pandemic, without regard | ||
| to whether the pandemic caused a direct physical loss to the | ||
| policyholder's property. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to an insurance policy that is delivered, issued for delivery, or | ||
| renewed on or after January 1, 2022. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
