Texas Insurance Code - Not Codified - Article 5.33B. Voluntary Inspection Program
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Art. 5.33B. VOLUNTARY INSPECTION PROGRAM.
Article repealed effective April 1, 2007
Text of article as added by Acts 1995, 74th Leg., ch. 415, Sec. 10
Right to Voluntary Inspection of Property Condition
Sec. 1. Any person having an insurable interest in real or
tangible personal property at a fixed location who desires to
purchase residential property insurance may procure an independent
inspection of the condition of the property by an inspector
authorized to perform inspections under this article of the
property proposed to be insured.
Definitions
Sec. 2. In this article:
(a) "Residential property insurance" means insurance
against loss to real or tangible personal property at a fixed
location provided in a homeowners policy, residential fire and
allied lines policy, or farm and ranch owners policy.
(b) "Inspection" means a physical inspection of the
property for which residential property insurance is sought.
(c) "Inspection certificate" means a certificate issued by
an inspector pursuant to this article indicating that the condition
of the property meets or exceeds minimum standards.
(d) "Minimum standards" are those standards for property
condition insurability under this article as the commissioner shall
determine by rule.
(e) "Inspector" means a person authorized by the
commissioner to perform inspections under this article.
Plan of Operation
Sec. 3. (a) The commissioner shall adopt a plan of operation
for the Voluntary Inspection Program. The plan of operation shall
include rules and standards for the inspection program, including
but not limited to the following:
(1) the manner and scope of the inspections to be performed;
(2) the contents of the written evaluation report;
(3) the form of the inspection certificate to be issued;
(4) the term during which an inspection certificate shall
remain valid;
(5) rules for the certification and licensing of persons who
are authorized to perform inspections under this program, which
group shall include, but not be limited to:
(i) persons licensed to perform real property inspections
under the Real Estate Licensing Act;
(ii) designated employees or agents of a county or
municipality which elects to establish a voluntary inspection
program to inspect properties for residential properties within the
territorial limits of the county or municipality; and
(6) the fee which may be charged to the person requesting
the inspection.
(b) The commissioner may adopt rules to encourage the
coordination of inspections under this article with inspections
performed under article 5.33A.
Effect of Certificate
Sec. 4. (a) The existence of an inspection certificate issued
under this article creates a presumption that the property
condition is adequate for residential property insurance to be
issued.
(b) As a condition of issuing a policy if an inspection
certificate is used in whole or in part to determine insurability,
an insurer may require a written statement by the applicant for
residential property insurance stating that there have been no
material or substantial changes to the property condition since the
date of the inspection certificate.
(c) An insurer who receives an inspection certificate may
not use property condition as grounds for refusing to issue or renew
residential property insurance unless the insurer reinspects the
property and specifies the areas of deficiency in its declination
letter.
Enforcement
Sec. 5. The commissioner may by rule provide for the use of
any of the disciplinary procedures authorized in this code to
maintain the integrity of the program or ensure compliance with
this article.
Rulemaking Authority
Sec. 6. The commissioner is authorized to adopt rules in
addition to the plan of operation that are appropriate to
accomplish the purposes of this article.
Added by Acts 1995, 74th Leg., ch. 415, Sec. 10, eff. Aug. 28, 1995.
For text of article as added by Acts 1995, 74th Leg., ch. 337, Sec.
2, see
Article: 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.33B 5.33B, ante
Art 5.34 5.35 5.35-1 5.35-2 5.35-3 5.36
Last modified: August 11, 2007
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