By Shields H.B. No. 2602
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to consumer protection for unfair competition and unfair
1-3 practices for the business of insurance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 16(b), (e), (f), and (g), Article 21.21,
1-6 Insurance Code, are amended to read as follows:
1-7 (b) In a suit filed under this section, any plaintiff who
1-8 prevails may obtain:
1-9 (1) the amount of actual damages plus court costs and
1-10 reasonable and necessary attorneys' fees. In addition, the court
1-11 shall award two times that portion of the actual damages that does
1-12 not exceed $1,000. If the trier of fact finds that the defendant
1-13 knowingly committed the acts complained of, the trier of fact may
1-14 <court shall> award, in addition, not more than two times the
1-15 amount of actual damages in excess of $1,000; or
1-16 (2) an order enjoining such acts or failure to act; or
1-17 (3) any other relief which the court deems proper.
1-18 (e) As a prerequisite to filing a suit seeking damages under
1-19 this section against any person, the person seeking damages shall
1-20 give written notice to the other person at least 60 <30> days
1-21 before filing suit. The notice must advise the person of the
1-22 specific complaint and the amount of actual damages and expenses,
1-23 including any attorneys' fees reasonably incurred in asserting the
2-1 claim against the defendant.
2-2 (f) If giving 60 <30> days' written notice is impracticable
2-3 because the suit must be filed in order to prevent the expiration
2-4 of the statute of limitations or because the claim is asserted as a
2-5 counterclaim, the notice provided for in Subsection (e) of this
2-6 section is not required, and the tender of a written offer of
2-7 settlement provided for by Subsection (g) of this section may be
2-8 made not later than the 60th <30th> day after the date of filing of
2-9 the suit or counterclaim.
2-10 (g) A person who receives the written notice provided by
2-11 Subsection (e) of this section may tender, not later than the 60th
2-12 <30th> day after the date of receipt of the notice, to the person
2-13 seeking damages, a written offer of settlement, including an
2-14 agreement to reimburse the person for any attorneys' fees
2-15 reasonably incurred in asserting the claim to the date of the
2-16 written notice. A person who does not receive a written notice
2-17 because the suit or counterclaim is filed as provided for by
2-18 Subsection (f) of this section may tender, not later than the 60th
2-19 <30th> day after the date of filing of the suit or counterclaim, a
2-20 written offer of settlement, including an agreement to reimburse
2-21 the person for any attorneys' fees reasonably incurred in asserting
2-22 the claim to the date the suit or counterclaim was filed. An offer
2-23 of settlement is rejected if it is not accepted on or before the
2-24 30th day after the date of receipt by the person seeking damages.
2-25 SECTION 2. This Act takes effect September 1, 1993, and
3-1 applies to actions or claims commenced on or after the effective
3-2 date of this Act. An action or claim commenced before the
3-3 effective date of this Act is governed with respect to the specific
3-4 subject matters of this Act by the applicable law in effect before
3-5 the effective date of this Act, and that prior law is continued in
3-6 effect only for that purpose. In an action, claim, or suit in
3-7 which a statute requires written notice to be given before the
3-8 filing or bringing of the action, claim, or suit, personally
3-9 delivering or depositing the notice, postage prepaid, in the United
3-10 States mail before the effective date of this Act is considered
3-11 filing or bringing the action before the effective date of this Act
3-12 if the suit is formally filed or otherwise brought within 120 days
3-13 after the date of the delivery or mailing.
3-14 SECTION 3. The importance of this legislation and the
3-15 crowded condition of the calendars in both houses create an
3-16 emergency and an imperative public necessity that the
3-17 constitutional rule requiring bills to be read on three several
3-18 days in each house be suspended, and this rule is hereby suspended.