By Duncan H.B. No. 1423
74R4885 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to unfair methods of competition or unfair or deceptive
1-3 acts or practices in the business of insurance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 13, Article 21.21, Insurance Code, is
1-6 amended by amending Subsection (a) and adding Subsection (g) to
1-7 read as follows:
1-8 (a) The State Board of Insurance is authorized to promulgate
1-9 and may promulgate and enforce reasonable rules and regulations and
1-10 may order such provision as is necessary to implement <in the
1-11 accomplishment of the purposes of> this Article, as specified by
1-12 Section 4 of this Article, and Article 21.20 and may make <,
1-13 including, but not limited to,> such express provision within the
1-14 purposes of these Articles as it deems necessary or as is required
1-15 to affect necessary uniformity with the laws of other states or the
1-16 United States or in conformity with the adopted procedures of the
1-17 National Association of Insurance Commissioners notwithstanding any
1-18 previous definition or interpretation of terms used in these
1-19 Articles had in or derived from the common law or other statutory
1-20 law of this state.
1-21 (g) Notwithstanding any other provision of this Article or
1-22 any other law, a person may not bring a private cause of action
1-23 based on the violation of a rule authorized by this section.
1-24 SECTION 2. Section 16(a), Article 21.21, Insurance Code, is
2-1 amended to read as follows:
2-2 (a) Any person who has sustained actual damages as a result
2-3 of another's engaging in an act or practice declared in Section 4
2-4 of this Article <or in rules or regulations lawfully adopted by the
2-5 Board under this Article> to be unfair methods of competition or
2-6 unfair or deceptive acts or practices in the business of insurance
2-7 or in any false, misleading, or deceptive act or practice that is
2-8 specifically listed in a subdivision of <practice defined by>
2-9 Section 17.46(b), <17.46 of the> Business & Commerce Code, <as
2-10 amended, as an unlawful deceptive trade practice> may maintain an
2-11 action against the person or persons engaging in such acts or
2-12 practices.
2-13 SECTION 3. Section 17(a), Article 21.21, Insurance Code, is
2-14 amended to read as follows:
2-15 (a) If a member of the insurance buying public has been
2-16 damaged by an unlawful method, act, or practice defined in Section
2-17 4 of this Article <or by the rules and regulations lawfully adopted
2-18 by the Board under this Article> or by any false, misleading, or
2-19 deceptive act or practice that is specifically listed in a
2-20 subdivision of <defined by> Section 17.46(b), <17.46 of the>
2-21 Business & Commerce Code, <as amended, as an unlawful deceptive
2-22 trade practice,> the Board may request the Attorney General to
2-23 bring a class action, or the individual damaged may bring an action
2-24 on behalf of himself and others similarly situated, to recover
2-25 damages and relief as provided in this section.
2-26 SECTION 4. Section 2, Article 21.21-2, Insurance Code, is
2-27 amended by adding Subsection (d) to read as follows:
3-1 (d) Notwithstanding any other provision of this Act or any
3-2 other law, a person may not bring a private cause of action based
3-3 on the violation of a rule authorized by Subsection (b)(7) of this
3-4 section.
3-5 SECTION 5. Section 17.50(a), Business & Commerce Code, is
3-6 amended to read as follows:
3-7 (a) A consumer may maintain an action where any of the
3-8 following constitute a producing cause of actual damages:
3-9 (1) the use or employment by any person of a false,
3-10 misleading, or deceptive act or practice that is specifically
3-11 enumerated in a subdivision of Subsection (b) of Section 17.46 of
3-12 this subchapter;
3-13 (2) breach of an express or implied warranty;
3-14 (3) any unconscionable action or course of action by
3-15 any person; or
3-16 (4) the use or employment by any person of an act or
3-17 practice in violation of Article 21.21, Texas Insurance Code<, as
3-18 amended, or rules or regulations issued by the State Board of
3-19 Insurance under Article 21.21, Texas Insurance Code, as amended>.
3-20 SECTION 6. This Act takes effect September 1, 1995, and
3-21 applies only to a cause of action that accrues on or after that
3-22 date. An action that accrued before the effective date of this Act
3-23 is governed by the law as it existed immediately before the
3-24 effective date of this Act, and that law is continued in effect for
3-25 that purpose.
3-26 SECTION 7. The importance of this legislation and the
3-27 crowded condition of the calendars in both houses create an
4-1 emergency and an imperative public necessity that the
4-2 constitutional rule requiring bills to be read on three several
4-3 days in each house be suspended, and this rule is hereby suspended.