S.B. No. 598
AN ACT
1-1 relating to the payment of claims on certain insurance policies or
1-2 annuity contracts and to payment of attorney fees under those
1-3 claims.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 6, Article 21.55, Insurance Code, is
1-6 amended to read as follows:
1-7 Sec. 6. DAMAGES. In all cases where a claim is made
1-8 pursuant to a policy of insurance and the insurer liable therefor
1-9 is not in compliance with the requirements of this article, such
1-10 insurer shall be liable to pay the holder of the policy, or the
1-11 beneficiary making a claim under the policy, in addition to the
1-12 amount of the claim, 18 percent per annum of the amount of such
1-13 claim as damages, together with reasonable attorney fees <as may
1-14 be determined by the trier of fact>. If suit is filed, such <Such>
1-15 attorney fees shall be taxed as part of the costs in the case.
1-16 SECTION 2. This Act takes effect September 1, 1995.
1-17 SECTION 3. The importance of this legislation and the
1-18 crowded condition of the calendars in both houses create an
1-19 emergency and an imperative public necessity that the
1-20 constitutional rule requiring bills to be read on three several
1-21 days in each house be suspended, and this rule is hereby suspended.