79C119(2) PAM

 

CHAPTER 2005.  HOME WARRANTY AND HOME

PROTECTION INSURANCE

Revised Law

Sec. 2005.001.  DEFINITIONS.  In this chapter:

(1)  "Home protection insurance" means coverage insuring a purchaser of a home protection service or product against actual property loss.

(2)  "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 Chapter 1702, Occupations Code.

(3)  "Home warranty insurance" means coverage:

(A)  insuring performance by a builder of residential property of the builder's warranty obligations to a purchaser of the residential property; or

(B)  insuring against named defects arising from failure of the builder to construct residential property in accordance with specified construction standards.  (V.T.I.C. Art. 5.53-A, Sec. 2.)

Source Law

Sec. 2.  In this article:

(1)  "Home warranty insurance" means coverage insuring:

(A)  performance by builders of residential property of their warranty obligations to purchasers of such property; or

(B)  against named defects arising from failure of the builder to construct residential property in accordance with specified construction standards.

(2)  "Home protection insurance" means coverage insuring purchasers of home protection services or products against actual property loss.

(3)  "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), Vernon's Texas Civil Statutes).

Revisor's Note

Section 2(3), V.T.I.C. Article 5.53-A, refers to the Private Investigators and Private Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes).  That statute was codified in 1999 as Chapter 1702, Occupations Code.  The revised law is drafted accordingly.

Revised Law

Sec. 2005.002.  AUTHORIZATION TO WRITE CERTAIN INSURANCE.  An insurer authorized to engage in the business of fire insurance and allied lines or inland marine insurance may write home warranty insurance or home protection insurance in this state.  (V.T.I.C. Art. 5.53-A, Sec. 1(a).)

Source Law

Art. 5.53-A

Sec. 1.  (a)  Any company licensed to engage in the business of fire insurance and its allied lines, or inland marine insurance, or both, is authorized to write home warranty insurance or home protection insurance in this state.

Revisor's Note

Section 1(a), V.T.I.C. Article 5.53-A, refers to an insurer "licensed" to engage in the business of fire insurance and allied lines or inland marine insurance.  The revised law substitutes "authorized" for "licensed" because "certificate of authority" is the term used throughout this code in relation to an entity's authority to engage in business.

Revised Law

Sec. 2005.003.  MANNER OF REGULATION.  Home warranty insurance or home protection insurance is not inland marine insurance, but is governed in the same manner and to the same extent as inland marine insurance.  (V.T.I.C. Art. 5.53-A, Sec. 1(b).)

Source Law

(b)  Insurance subject to this article is not inland marine insurance, but shall be governed in the same manner and to the same extent as inland marine insurance.

Revisor's Note

Section 1(b), V.T.I.C. Article 5.53-A, refers to "[i]nsurance subject to this article."  For clarity, the revised law substitutes "home warranty insurance or home protection insurance" for the quoted language because those are the kinds of insurance subject to Article 5.53-A, revised as this chapter.

Revised Law

Sec. 2005.004.  LIMITS OF COVERAGE.  The amount of coverage under a home protection insurance policy may not exceed $2,000 for any single occurrence.  (V.T.I.C. Art. 5.53-A, Sec. 1(c).)

Source Law

(c)  The amount of coverage under a policy of home protection insurance may not exceed $2,000 for any single occurrence.