By Harris of Tarrant S.B. No. 391
74R4704 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to recovery from certain insureds of payments made by the
1-3 Texas Property and Casualty Insurance Guaranty Association.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 11, Article 21.28-C, Insurance Code, is
1-6 amended by amending Subsection (b) and adding Subsection (e) to
1-7 read as follows:
1-8 (b) Subject to Subsection (e) of this section, the <The>
1-9 association is entitled to recover from the following persons the
1-10 amount of any covered claim paid on behalf of that person under
1-11 this Act:
1-12 (1) any insured whose net worth on December 31 of the
1-13 year next preceding the date the insurer becomes an impaired
1-14 insurer exceeds $50 million and whose liability obligations to
1-15 other persons are satisfied in whole or in part by payments made
1-16 under this Act; and
1-17 (2) any person who is an affiliate of the impaired
1-18 insurer and whose liability obligations to other persons are
1-19 satisfied in whole or in part by payments made under this Act.
1-20 (e) The association may not recover the amount of a covered
1-21 claim under Subsection (b)(1) of this section unless the covered
1-22 claim was filed by the insured or a third-party claimant with the
1-23 association on or after January 1, 1992.
1-24 SECTION 2. The change in law made by this Act does not apply
2-1 to a recovery under Section 11, Article 21.28-C, Insurance Code,
2-2 that has been reduced to a final judgment before the effective date
2-3 of this Act.
2-4 SECTION 3. The importance of this legislation and the
2-5 crowded condition of the calendars in both houses create an
2-6 emergency and an imperative public necessity that the
2-7 constitutional rule requiring bills to be read on three several
2-8 days in each house be suspended, and this rule is hereby suspended,
2-9 and that this Act take effect and be in force from and after its
2-10 passage, and it is so enacted.