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.