By Bonnen H.B. No. 1477
75R3473 SAW-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to immunity from liability for the directors, officers,
1-3 agents, and employees of the Texas Catastrophe Property Insurance
1-4 Association.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 9A(a), Article 21.49, Insurance Code, is
1-7 amended to read as follows:
1-8 (a) Except as provided by Section 10 of this Article, any
1-9 [Any] person insured under this Act who is aggrieved by an act,
1-10 ruling, or decision of the Association relating to the payment of,
1-11 the amount of, or the denial of a claim may elect to bring an
1-12 action, including an action under Article 21.21 of this code,
1-13 against the Association in a court of competent jurisdiction or to
1-14 appeal the act, ruling, or decision under Section 9 of this
1-15 Article. A person may not proceed under both Section 9 of this
1-16 Article and this section for the same act, ruling, or decision.
1-17 SECTION 2. Section 10, Article 21.49, Insurance Code, is
1-18 amended to read as follows:
1-19 Sec. 10. IMMUNITY FROM LIABILITY. (a) There shall be no
1-20 liability on the part of and no cause of action of any nature shall
1-21 arise against a director, officer, agent, or employee of the
1-22 Association for any action or failure to act in the performance of
1-23 powers and duties under this Article, including any power or duty
1-24 relating to the plan of operation or to any policy issued by the
2-1 Association, except that immunity from liability and suit does not
2-2 extend to any bad faith act or failure to act, or to an act or
2-3 failure to act that involves intentional misconduct or a knowing
2-4 violation of the law.
2-5 (b) There shall be no liability on the part of and no cause
2-6 of action of any nature shall arise against [a director of the
2-7 association, the Board or any of its staff, the Association or its
2-8 agents or employees, or against] any participating insurer or its
2-9 agents or employees, for any inspections made under the plan of
2-10 operation or any statements made in good faith by them in any
2-11 reports or communications concerning risks submitted to the
2-12 Association, or at any administrative hearings conducted in
2-13 connection therewith under the provisions of this Act.
2-14 SECTION 3. This Act takes effect September 1, 1997, and
2-15 applies only to a cause of action that accrues on or after that
2-16 date. A cause of action that accrues before the effective date of
2-17 this Act is governed by the law as it existed immediately before
2-18 the effective date of this Act and that law is continued in effect
2-19 for this purpose.
2-20 SECTION 4. The importance of this legislation and the
2-21 crowded condition of the calendars in both houses create an
2-22 emergency and an imperative public necessity that the
2-23 constitutional rule requiring bills to be read on three several
2-24 days in each house be suspended, and this rule is hereby suspended.