Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Averitt                                      H.B. No. 2794

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to actions for amount of deductible under personal

 1-3     automobile insurance policies.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Article 21.79E, Insurance Code, is amended to

 1-6     read as follows:

 1-7           Art. 21.79E.  Action for Amount of Deductible.  (a)  This

 1-8     article applies to any insurer who delivers, issues for delivery,

 1-9     or renews a [policy of motor vehicle] private passenger automobile

1-10     insurance policy in this state, including an interinsurance

1-11     exchange, mutual, reciprocal, association, Lloyd's, or other

1-12     insurer.

1-13           (b)  Notwithstanding any other provision of this code, and

1-14     except as provided by Subsection (c) of this article, if an insurer

1-15     is liable to an insured for a claim, and such [the] claim is

1-16     subject to a deductible payable by the insured, and a third party

1-17     may be liable to the insurer or the insured for the amount of the

1-18     deductible, the insurer shall file a lawsuit or take other action

1-19     resulting in a binding, enforceable judgment for recovery of [bring

1-20     an action to recover] the deductible against the third party not

1-21     later than twelve [six] months after the date the claim is made or

1-22     pay the amount of the deductible to the insured.

1-23           (c)  Subsection (b) of this article does not apply if, not

1-24     later than twelve [six] months after the date the claim is made,

 2-1     the insurer notifies the insured in writing that the insurer does

 2-2     [will] not intend to take action, as specified in subsection (b) of

 2-3     this article, [bring an action] against the third party and

 2-4     authorizes the insured to take [bring the] action to recover the

 2-5     deductible.

 2-6           (d)  This article applies whether the third party who may be

 2-7     liable for the amount of the deductible is insured or uninsured.

 2-8           SECTION 2.  The Commissioner is authorized to promulgate

 2-9     rules to implement this article.

2-10           SECTION 3.  This Act takes effect September 1, 1997.

2-11           SECTION 4.  EMERGENCY CLAUSE.  The importance of this

2-12     legislation and the crowded condition of the calendars in both

2-13     houses create an emergency and an imperative public necessity that

2-14     the constitutional rule requiring bills to be read on three several

2-15     days in each house be suspended, and this rule is hereby suspended.