By Danburg H.B. No. 2824 74R7856 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to suits against certain real estate agents and brokers 1-3 under the Deceptive Trade Practices-Consumer Protection Act. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 17.49, Business & Commerce Code, is 1-6 amended by adding Subsection (c) to read as follows: 1-7 (c) This subchapter does not apply to an act or practice of 1-8 a real estate broker or agent if: 1-9 (1) the real estate broker or agent is covered by a 1-10 policy of errors and omissions insurance, or similar coverage, that 1-11 provides coverage for the liability of the broker or agent for 1-12 damages arising as a result of the act or practice; and 1-13 (2) the act or practice was not committed 1-14 intentionally or maliciously. 1-15 SECTION 2. This Act takes effect September 1, 1995, and 1-16 applies only to a cause of action that accrues on or after that 1-17 date. An action that accrued before the effective date of this Act 1-18 is governed by the law as it existed immediately before the 1-19 effective date of this Act, and that law is continued in effect for 1-20 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.