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                                                                  H.B. No. 363




AN ACT

relating to the declination of certain property and casualty 
insurance policies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Subchapter C, Chapter 551, 
Insurance Code, is amended to read as follows:

SUBCHAPTER C.  DECLINATION, CANCELLATION, AND NONRENEWAL OF

CERTAIN PROPERTY AND CASUALTY POLICIES
	SECTION 2.  Subchapter C, Chapter 551, Insurance Code, is 
amended by adding Section 551.113 to read as follows:
	Sec. 551.113.  DECLINATION PROHIBITED; CONSIDERATION OF 
CERTAIN CLAIMS.  (a)  This section applies only to a standard fire, 
homeowners, or farm and ranch owners insurance policy.
	(b)  When deciding to issue or to decline to issue an 
insurance policy to an applicant for insurance, an insurer may not 
consider a customer inquiry as a basis for declination.
	(c)  For purposes of this section, "customer inquiry" means a 
telephone call or other communication made to an insurer that does 
not result in an investigation or claim and that is in regard to the 
general terms or conditions of or coverage offered under an 
insurance policy.  The term includes a question concerning the 
process for filing a claim, and whether a policy will cover a loss, 
unless the question concerns specific damage that has occurred and 
that results in an investigation or claim.
	SECTION 3.  The change in law made by this Act applies only 
to an application for insurance coverage that is made on or after 
the effective date of this Act.  An application for insurance 
coverage that is made before the effective date of this Act is 
governed by the law in effect at the time the application was made, 
and that law is continued in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 363 was passed by the House on May 13, 
2005, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 363 was passed by the Senate on May 
25, 2005, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor