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.