AN ACT
1-1 relating to liability insurance coverage for a charitable
1-2 organization.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (g), Section 84.007, Civil Practice
1-5 and Remedies Code, is amended to read as follows:
1-6 (g) Sections 84.005 and 84.006 of this Act do not apply to
1-7 any charitable organization that does not have liability insurance
1-8 coverage in effect on any act or omission to which this chapter
1-9 applies. The coverage shall apply to the acts or omissions of the
1-10 organization and its employees and volunteers and be in the amount
1-11 of at least $500,000 for each person and $1,000,000 for each single
1-12 occurrence for death or bodily injury and $100,000 for each single
1-13 occurrence for injury to or destruction of property. The coverage
1-14 may be provided under a contract of insurance or other plan of
1-15 insurance authorized by statute and may be satisfied by the
1-16 purchase of a $1,000,000 bodily injury and property damage combined
1-17 single limit policy. Nothing in this chapter shall limit liability
1-18 of any insurer or insurance plan in an action under Chapter 21,
1-19 Insurance Code, or in an action for bad faith conduct, breach of
1-20 fiduciary duty, or negligent failure to settle a claim.
1-21 SECTION 2. The importance of this legislation and the
1-22 crowded condition of the calendars in both houses create an
1-23 emergency and an imperative public necessity that the
2-1 constitutional rule requiring bills to be read on three several
2-2 days in each house be suspended, and this rule is hereby suspended,
2-3 and that this Act take effect and be in force from and after its
2-4 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 455 passed the Senate on
April 3, 1997, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 27, 1997, by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 455 passed the House, with
amendment, on May 23, 1997, by the following vote: Yeas 122,
Nays 0, one present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor