1-1 By: Ratliff S.B. No. 598
1-2 (In the Senate - Filed February 16, 1995; February 16, 1995,
1-3 read first time and referred to Committee on Economic Development;
1-4 April 20, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 10, Nays 0; April 20, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 598 By: Harris
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the payment of claims on certain insurance policies or
1-11 annuity contracts and to payment of attorney fees under those
1-12 claims.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 6, Article 21.55, Insurance Code, is
1-15 amended to read as follows:
1-16 Sec. 6. DAMAGES. In all cases where a claim is made
1-17 pursuant to a policy of insurance and the insurer liable therefor
1-18 is not in compliance with the requirements of this article, such
1-19 insurer shall be liable to pay the holder of the policy, or the
1-20 beneficiary making a claim under the policy, in addition to the
1-21 amount of the claim, 18 percent per annum of the amount of such
1-22 claim as damages, together with reasonable attorney fees <as may
1-23 be determined by the trier of fact>. If suit is filed, such <Such>
1-24 attorney fees shall be taxed as part of the costs in the case.
1-25 SECTION 2. This Act takes effect September 1, 1995.
1-26 SECTION 3. The importance of this legislation and the
1-27 crowded condition of the calendars in both houses create an
1-28 emergency and an imperative public necessity that the
1-29 constitutional rule requiring bills to be read on three several
1-30 days in each house be suspended, and this rule is hereby suspended.
1-31 * * * * *