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. Subsections (b), (e), (f), (g), Section 16,
1-6 ARTICLE 21.21., 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 court may <shall>
1-14 award, in addition, two times the amount of actual damages in
1-15 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. During the 60-day period, a written
2-2 request to inspect, in a reasonable manner and at a reasonable time
2-3 and place, any goods or other properties that are the subject of
2-4 the person's complaint or claim may be presented to the person. If
2-5 the person unreasonably refuses to permit the inspection, the court
2-6 shall not award the two times actual damages not exceeding $1,000
2-7 as provided in Subsection (b)(1) of this section.
2-8 (f) If giving 60 <30> days' written notice is impracticable
2-9 because the suit must be filed in order to prevent the expiration
2-10 of the statute of limitations or because the claim is asserted as a
2-11 counterclaim, the notice provided for in Subsection (e) of this
2-12 section is not required, and the tender of a written offer of
2-13 settlement provided for by Subsection (g) of this section may be
2-14 made not later than the 60th <30th> day after the date of filing of
2-15 the suit or counterclaim.
2-16 (g) A person who receives the written notice provided by
2-17 Subsection (e) of this section may tender, not later than the 60th
2-18 <30th> day after the date of receipt of the notice, to the person
2-19 seeking damages, a written offer of settlement, including an
2-20 agreement to reimburse the person for any attorneys' fees
2-21 reasonably incurred in asserting the claim to the date of the
2-22 written notice. A person who does not receive a written notice
2-23 because the suit or counterclaim is filed as provided for by
2-24 Subsection (f) of this section may tender, not later than the 60th
2-25 <30th> day after the date of filing of the suit or counterclaim, a
3-1 written offer of settlement, including an agreement to reimburse
3-2 the person for any attorneys' fees reasonably incurred in asserting
3-3 the claim to the date the suit or counterclaim was filed. An offer
3-4 of settlement is rejected if it is not accepted on or before the
3-5 30th day after the date of receipt by the person seeking damages.
3-6 SECTION 2. This act takes effect September 1, 1993 and
3-7 applies to actions or claims commenced on or after the effective
3-8 date of this Act. An action or claim commenced before the
3-9 effective date of this Act is governed with respect to the specific
3-10 subject matters of this Act by the applicable law in effect before
3-11 the effective date of this Act, and that prior law is continued in
3-12 effect only for that purpose. In an action, claim, or suit in
3-13 which a statute requires written notice to be given before the
3-14 filing or bringing of the action, claim, or suit, personally
3-15 delivering or depositing the notice, postage prepaid, in the United
3-16 States mail before the effective date of this Act is considered
3-17 filing or bringing the action before the effective date of this
3-18 Act, if the suit is formally filed or otherwise brought within 120
3-19 days after the date of the delivery or mailing.
3-20 SECTION 3. The importance of this legislation and the
3-21 crowded condition of the calendars in both houses create an
3-22 emergency and an imperative public necessity that the
3-23 constitutional rule requiring bills to be read on three several
3-24 days in each house be suspended, and this rule is hereby suspended.