By Duncan                                        S.B. No. 455

      75R4953 PB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to liability insurance coverage for a charitable

 1-3     organization.

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

 1-5           SECTION 1.  Section 84.007(g), Civil Practice and Remedies

 1-6     Code, is amended to read as follows:

 1-7           (g)  Sections 84.005 and 84.006 of this Act do not apply to

 1-8     any charitable organization that does not have liability insurance

 1-9     coverage in effect on any act or omission to which this chapter

1-10     applies.  The coverage shall apply to the acts or omissions of the

1-11     organization and its employees and volunteers and be in the amount

1-12     of at least $500,000 for each person and $1,000,000 for each single

1-13     occurrence for death or bodily injury and $100,000 for each single

1-14     occurrence for injury to or destruction of property.  The coverage

1-15     may be provided under a contract of insurance or other plan of

1-16     insurance authorized by statute and may be satisfied by the

1-17     purchase of a $1,000,000 bodily injury and property damage combined

1-18     single limit policy.  Nothing in this chapter shall limit liability

1-19     of any insurer or insurance plan in an action under Chapter 21,

1-20     Insurance Code, or in an action for bad faith conduct, breach of

1-21     fiduciary duty, or negligent failure to settle a claim.

1-22           SECTION 2.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     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.