HBA-TYH, ATS H.B. 2941 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2941
By: Lewis, Glenn
Insurance
7/22/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, companies that offered home protection
services or products often provided deductible reimbursement benefits to
their customers when they suffered a property loss. Insurers would have
liked to insure these companies for the risks associated with providing
reimbursement benefits, but the Texas Department of Insurance had been
unable to establish the type of policy and wording that would provide the
required coverage for these benefits.  H.B. 2941 authorizes a fire or
marine insurer to write home protection insurance. Under this bill,
coverage under a home protection insurance policy cannot exceed $2,000 for
any single occurrence. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 5.53-A, Insurance Code, as follows:

 Art. 5.53-A.  New title: HOME WARRANTY INSURANCE; HOME PROTECTION INSURANCE

Sec. 1.  New title: INSURANCE COVERAGE; LIMITATIONS.  (a) Includes home
protection insurance among the types of insurance (home warranty
insurance), a fire or marine insurer is authorized to write. 

(b) Makes a conforming change.

(c) Adds this subsection to prohibit the amount of coverage under a home
protection insurance policy from exceeding $2,000 for any single
occurrence. 

Sec. 2.  New title: DEFINITIONS.  Adds definitions for "home protection
insurance" and "home protection service or product."  Home protection
insurance means coverage insuring purchasers of home protection services or
products against actual property loss. Home protection service or product
means a service or product used for the protection of residential property,
including a service or product provided by a person regulated under the
Private Investigators and Private Security Agencies Act (Article
4413(29bb), V.T.C.S.).  Makes conforming and  nonsubstantive changes. 

SECTION 2.  Makes application of this Act prospective for an insurance
policy delivered, issued for delivery, or renewed on or after January 1,
2000. 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.