Bill Text: TX SB442 | 2019-2020 | 86th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to a disclosure regarding flood coverage under a commercial or residential property insurance policy.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-05-31 - Effective on 9/1/19 [SB442 Detail]
Download: Texas-2019-SB442-Engrossed.html
Bill Title: Relating to a disclosure regarding flood coverage under a commercial or residential property insurance policy.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-05-31 - Effective on 9/1/19 [SB442 Detail]
Download: Texas-2019-SB442-Engrossed.html
By: Hancock, Campbell | S.B. No. 442 |
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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. |