** REVISION ** ** REVISION ** HOUSE OF REPRESENTATIVES NOTICE OF PUBLIC HEARING COMMITTEE: Insurance TIME & DATE: 11:00AM, Wednesday, February 13, 2002 PLACE: E2.026 CHAIR: Rep. John T. Smithee ___________________________________________________________________________ The House Committee on Insurance will take public testimony at 11 a.m. regarding the following proposals to address Interim Charge #1, to review issues associated with homeowners' insurance coverage of mold-related claims. The committee will also consider other proposals submitted by members or by the public. At 2:30 p.m., the committee will hear invited testimony. Proposals should be submitted in writing to Chairman Smithee's office by 5 p.m. on Wednesday, February 6. An electronic copy should also be e-mailed to Lynsey Patrick at Lynsey.Patrick@house.state.tx.us. Copies of any proposals submitted will be available publicly posted prior to the hearing on this site and will also be available by appointment for public inspection in Representative Smithee's capitol office (1w.11). 1. Reduction of the allowable time periods in the adjusting process for the handling of water damage claims. 2. Licensing of entities engaged in repair and remediation of mold-related problems, and establishing standards for types and levels of remediation required, balancing cost factors and legitimate health concerns. 3. Licensing of so-called "public adjusters", together with establishing minimum education and bonding requirements for public adjusters. 4. Explore greater flexibility of forms for homeowners' insurance. 5. Requirement that insurers file proposed rates with the Commissioner, with authority by the Commissioner to review rates, and to reject excessive rates. 6. Giving the Commissioner the authority to order insurers to cease writing certain lines and types of coverage when they wrongfully refuse to write or renew other lines and forms of coverage. 7. Offering insurance incentives for compliance with construction specifications designed to reduce risk of water damage or mold. 8. Temporary cap on punitive damages in mold-related insurance cases. PROPOSALS SUBMITTED BY THE PUBLIC: 9. Requiring home builders to provide a warranty to insurers which states that all work done on the home has been performed within the standards of the building codes currently in effect. The builder would then be liable for damages that are a result of failure to meet building codes. 10. Making building codes mandatory for the state, not just for municipalities which choose to adopt them. 11. Mandate that insurers use already developed and accepted guidelines when adjusting water damage claims. 12. Regulate rates and allow companies to offer one standard policy. If coverage is reduced, premiums should be discounted by a corresponding amount. 13. Place no new limits on punitive damages. 14. Licensing of home builders engaged in new home construction, and establishing construction standards for mold prevention. 15. Restricting the use of certain building materials, which are prone to mold growth and contamination, in new home building. 16. Providing consumer protection and recourse for those homeowners with with mold contamination 17. Further investigation by the State on the cause(s) of mold contamination, why it becomes toxic, how to detect it quickly, how to prevent it, and how to cost effectively kill it. 18. Further investigation by the State into the health effects of of mold contamination. 19. Inspections of new home construction to prevent mold contamination. 20. Removal of the "consequential damage" clause in new home warraties so the builder will be held accountable for damage caused by a construction defect. 21. A Texas Home Lemon Law designed after the Car Lemon Law which would include protection against mold. If a home becomes contaminated with Toxic Mold caused by construction defects, design defects or construction materials that are predisposed to mold growth within the first 3 years, the home builder must buy the home back within 45 days at the fair market value. ___________________________________________________________________________