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.
1-54 * * * * *