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


Office of House Bill AnalysisH.B. 2941
By: Lewis, Glenn
Insurance
3/25/1999
Introduced



BACKGROUND AND PURPOSE 

Companies that offer home protection services or products often provide
deductible reimbursement benefits to their customers when they suffer a
property loss.  Insurers would like to insure these companies for the risks
associated with providing reimbursement benefits, but the Texas Department
of Insurance has 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:

ARTICLE 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.