1-1 By: De La Garza (Senate Sponsor - Rosson) H.B. No. 1933
1-2 (In the Senate - Received from the House May 15, 1995;
1-3 May 17, 1995, read first time and referred to Committee on Economic
1-4 Development; May 23, 1995, reported favorably by the following
1-5 vote: Yeas 10, Nays 0; May 23, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the provision of information to the holders of certain
1-9 insurance policies.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Article 5.65A(b), Insurance Code, is amended to
1-12 read as follows:
1-13 (b) Each company or association that writes workers'
1-14 compensation insurance in this state, on the written request of the
1-15 policyholder, shall provide the policyholder with a list of claims
1-16 charged against the policy, payments made and reserves established
1-17 on each claim, and a statement explaining the effect of claims on
1-18 premium rates. The company or association shall provide the
1-19 information to the policyholder in writing not later than the 30th
1-20 day after the date on which the company or association receives the
1-21 policyholder's written request for the information. The
1-22 information is considered to be provided on the date that the
1-23 information is received by the United States Postal Service or
1-24 personally delivered.
1-25 SECTION 2. Article 21.59, Insurance Code, is amended to read
1-26 as follows:
1-27 Art. 21.59. PROVIDING CLAIMS INFORMATION TO CERTAIN
1-28 <LIABILITY> INSUREDS. (a) In this article, "liability insurance"
1-29 means the following types of insurance:
1-30 (1) general liability;
1-31 (2) medical professional liability;
1-32 (3) professional liability other than medical
1-33 professional liability;
1-34 (4) commercial automobile liability; and
1-35 (5) the liability portion of commercial multiperil
1-36 coverage.
1-37 (b) On written request of a named insured under a liability
1-38 insurance policy, the insurer that wrote the policy shall provide
1-39 to the insured information relating to the disposition of a claim
1-40 filed under the policy. The request must be transmitted to the
1-41 insurer within six months from the date of disposition of the
1-42 claim.
1-43 (c) The information supplied to an <the> insured making a
1-44 <the> request under Subsection (b) of this article must include:
1-45 (1) the name of each claimant;
1-46 (2) details relating to the amount paid on the claim,
1-47 settlement of the claim, or judgment on the claim;
1-48 (3) details as to how the claim, settlement, or
1-49 judgment is to be paid; and
1-50 (4) any other information required by rule of the
1-51 commissioner <State Board of Insurance>.
1-52 (d) Each insurer that writes property and casualty insurance
1-53 in this state, on written request of the policyholder, shall
1-54 provide the policyholder with a list of claims charged against the
1-55 policy and payments made on each claim. This subsection does not
1-56 apply to a workers' compensation insurance policy subject to
1-57 Article 5.65A of this code.
1-58 (e) <(d)> The insurer shall provide the information
1-59 requested under this article in writing not later than the 30th day
1-60 after the date on which the written request is received by the
1-61 insurer. The information is considered to be provided on the date
1-62 that the information is received by the United States Postal
1-63 Service or personally delivered.
1-64 (f) <(e)> The commissioner <State Board of Insurance>, by
1-65 rule, may require information in addition to that required by
1-66 Subsection <Section> (c) of this article that the commissioner
1-67 <board> considers necessary to adequately inform an insured with
1-68 regard to any claim under a liability insurance policy.
2-1 (g) The commissioner <board> may adopt rules providing the
2-2 form for requests to an insurer and for information supplied by an
2-3 insurer under this article.
2-4 SECTION 3. This Act takes effect September 1, 1995, and
2-5 applies only to an insurance policy that is delivered, issued for
2-6 delivery, or renewed on or after January 1, 1996. A policy that is
2-7 delivered, issued for delivery, or renewed before January 1, 1996,
2-8 is governed by the law as it existed immediately before the
2-9 effective date of this Act, and that law is continued in effect for
2-10 that purpose.
2-11 SECTION 4. The importance of this legislation and the
2-12 crowded condition of the calendars in both houses create an
2-13 emergency and an imperative public necessity that the
2-14 constitutional rule requiring bills to be read on three several
2-15 days in each house be suspended, and this rule is hereby suspended.
2-16 * * * * *