By Bonnen H.B. No. 1477
Substitute the following for H.B. No. 1477:
By Gray C.S.H.B. No. 1477
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to immunity from liability for the directors of the Texas
1-3 Catastrophe Property Insurance Association.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 9A(a), Article 21.49, Insurance Code, is
1-6 amended to read as follows:
1-7 (a) Except as provided by section 10 of the Article, any
1-8 [Any] person insured under this Act who is aggrieved by an act,
1-9 ruling, or decision of the Association relating to the payment of,
1-10 the amount of, or the denial of a claim may elect to bring an
1-11 action under Article 21.21 of this code, against the Association in
1-12 a court of competent jurisdiction or to appeal the act, ruling, or
1-13 decision under Section 9 of the Article. A person may not proceed
1-14 under both Section 9 of this Article and this section for the same
1-15 act, ruling or decision.
1-16 SECTION 2. Section 10, Article 21.49, Insurance Code, is
1-17 amended to read as follows:
1-18 Section 10. IMMUNITY FROM LIABILITY. (a) There shall be no
1-19 liability on the part of and no cause of action of any nature shall
1-20 arise against a director of the Association for any action or
1-21 failure to act in the performance of official powers and duties
1-22 under this Article, including any official power or duty relating
1-23 to the plan of operation or to any policy issued by the
1-24 Association, except that immunity from liability and suit does not
2-1 extend to any bad faith act or failure to act, or to an act or
2-2 failure to act that involves gross negligence, intentional
2-3 misconduct, or a knowing violation of the law.
2-4 (b) There shall be no liability on the part of and cause of
2-5 action of any nature shall arise against a director of the
2-6 association, the board or any of its staff, the Association or its
2-7 agents or employees, or against any participating insurer or its
2-8 agents or employees, for any inspections made under the plan of
2-9 operation or any statements made in good faith by them in any
2-10 reports or communications concerning risks submitted to the
2-11 Association, or to any administrative hearings conducted in
2-12 connection therewith under the provisions of this Act.
2-13 SECTION 3. This Act takes effect September 1, 1997, and
2-14 applies only to a cause of action that accrues on or after that
2-15 date. A cause of action that accrues before the effective date of
2-16 this Act is governed by the law as it existed immediately before
2-17 the effective date of this Act and that law is continued in effect
2-18 for that purpose.
2-19 SECTION 4. The importance of this legislation and the
2-20 crowded condition of the calendars in both houses create an
2-21 emergency and an imperative public necessity that the
2-22 constitutional rule requiring bills to be read on three several
2-23 days in each house be suspended, and this rule is hereby suspended.