By Duncan, Culberson                                  H.B. No. 1511
       74R4768 PB-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to maximum liability under underinsured motorist insurance
    1-3  coverage.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section (5), Article 5.06-1, Insurance Code, is
    1-6  amended to read as follows:
    1-7        (5)  The underinsured motorist coverage shall provide for
    1-8  payment to the insured of all sums which the insured is <he shall
    1-9  be> legally entitled to recover as damages from owners or operators
   1-10  of underinsured motor vehicles because of bodily injury or property
   1-11  damage in an amount up to the limit specified in the policy.  That
   1-12  limit shall be<,> reduced by the amount recovered or recoverable by
   1-13  the insured from the insurer of the underinsured motor vehicle.
   1-14        SECTION 2.  This Act takes effect September 1, 1995, and
   1-15  applies only to a motor vehicle insurance policy that is delivered,
   1-16  issued for delivery, or renewed on or after January 1, 1996.  A
   1-17  policy that is delivered, issued for delivery, or renewed before
   1-18  January 1, 1996, is governed by the law as it existed immediately
   1-19  before the effective date of this Act, and that law is continued in
   1-20  effect for that purpose.
   1-21        SECTION 3.  The importance of this legislation and the
   1-22  crowded condition of the calendars in both houses create an
   1-23  emergency and an imperative public necessity that the
   1-24  constitutional rule requiring bills to be read on three several
    2-1  days in each house be suspended, and this rule is hereby suspended.