Enrolled Bill Summary

Under state law, insurers are required to bring an action to recover an automobile insurance deductible payment from a third party. Senate Bill 1106 amends the Insurance Code to broaden the interpretation of the phrase "bring an action" to include with lawsuits any reasonable and diligent collection efforts, mediation, and arbitration. The act also changes the length of time, after a claim is paid, that an insurer has to bring an action against a third party from 6 to 12 months and specifies that the application of this act is to private passenger automobile insurance rather than motor vehicle insurance.