1-1     By:  Bonnen, Seaman (Senate Sponsor - Brown)          H.B. No. 1477

 1-2           (In the Senate - Received from the House May 15, 1997;

 1-3     May 16, 1997, read first time and referred to Committee on Economic

 1-4     Development; May 18, 1997, reported favorably by the following

 1-5     vote:  Yeas 10, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to immunity from liability for the directors of the Texas

 1-9     Catastrophe Property Insurance Association.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 9A(a), Article 21.49, Insurance Code, is

1-12     amended to read as follows:

1-13           (a)  Except as provided by Section 10 of this Article, any

1-14     [Any] person insured under this Act who is aggrieved by an act,

1-15     ruling, or decision of the Association relating to the payment of,

1-16     the amount of, or the denial of a claim may elect to bring an

1-17     action, including an action under Article 21.21 of this code,

1-18     against the Association in a court of competent jurisdiction or to

1-19     appeal the act, ruling, or decision under Section 9 of this

1-20     Article.  A person may not proceed under both Section 9 of this

1-21     Article and this section for the same act, ruling, or decision.

1-22           SECTION 2.  Section 10, Article 21.49, Insurance Code, is

1-23     amended to read as follows:

1-24           Sec. 10.  IMMUNITY FROM LIABILITY.  (a)  There shall be no

1-25     liability on the part of and no cause of action of any nature shall

1-26     arise against a director of the Association for any action or

1-27     failure to act in the performance of official powers and duties

1-28     under this Article, including any official power or duty relating

1-29     to the plan of operation or to any policy issued by the

1-30     Association, except that immunity from liability and suit does not

1-31     extend to any bad faith act or failure to act, or to an act or

1-32     failure to act that involves gross negligence, intentional

1-33     misconduct, or a knowing violation of the law.

1-34           (b)  There shall be no liability on the part of and no cause

1-35     of action of any nature shall arise against a director of the

1-36     association, the Board or any of its staff, the Association or its

1-37     agents or employees, or against any participating insurer or its

1-38     agents or employees, for any inspections made under the plan of

1-39     operation or any statements made in good faith by them in any

1-40     reports or communications concerning risks submitted to the

1-41     Association, or at any administrative hearings conducted in

1-42     connection therewith under the provisions of this Act.

1-43           SECTION 3.  This Act takes effect September 1, 1997, and

1-44     applies only to a cause of action that accrues on or after that

1-45     date.  A cause of action that accrues before the effective date of

1-46     this Act is governed by the law as it existed immediately before

1-47     the effective date of this Act, and that law is continued in effect

1-48     for that purpose.

1-49           SECTION 4.  The importance of this legislation and the

1-50     crowded condition of the calendars in both houses create an

1-51     emergency and an imperative public necessity that the

1-52     constitutional rule requiring bills to be read on three several

1-53     days in each house be suspended, and this rule is hereby suspended.

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