1-1     By:  Duncan                                           S.B. No. 1106

 1-2           (In the Senate - Filed March 11, 1997; March 13, 1997, read

 1-3     first time and referred to Committee on Economic Development;

 1-4     April 4, 1997, reported favorably, as amended, by the following

 1-5     vote:  Yeas 9, Nays 0; April 4, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                               By:  Duncan

 1-7     Amend S.B. No. 1106, SECTION 1, by deleting Subsection (c) on page

 1-8     1, lines 46-51, and substituting therefor the following:

 1-9           (c)  Subsection (b) of this article does not apply if, not

1-10     later than the earlier of 12 [six] months after the date the

1-11     insured's claim is paid or 90 days prior to the expiration of the

1-12     statute of limitations for negligence actions [made], the insurer

1-13     notifies the insured in writing that the insurer does [will] not

1-14     intend to pursue further collection actions [bring an action]

1-15     against the third party and authorizes the insured to pursue

1-16     further collection actions [bring the action].

1-17     COMMITTEE AMENDMENT NO. 2                               By:  Duncan

1-18     Amend S.B. 1106, SECTION 1, by the addition of a new Subsection (f)

1-19     to read as follows:

1-20           (f)  The commissioner shall have authority to enforce this

1-21     article and is authorized to promulgate and enforce reasonable

1-22     rules and regulations as necessary for the accomplishment of the

1-23     purposes of this article.

1-24                            A BILL TO BE ENTITLED

1-25                                   AN ACT

1-26     relating to actions for the amount of deductible under personal

1-27     automobile insurance policies.

1-28           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-29           SECTION 1.  Article 21.79E, Insurance Code, as added by

1-30     Section 11.32, Chapter 242, Acts of the 72nd Legislature, Regular

1-31     Session, 1991, is amended to read as follows:

1-32           Art. 21.79E.  Action for Amount of Deductible.  (a)  This

1-33     article applies to any insurer who delivers, issues for delivery,

1-34     or renews a private passenger automobile policy of [motor vehicle]

1-35     insurance in this state, including an interinsurance exchange,

1-36     mutual, reciprocal, association, Lloyd's, or other insurer.

1-37           (b)  Notwithstanding any other provision of this code, and

1-38     except as provided by Subsection (c) of this article, if an insurer

1-39     is liable to an insured for a claim, and such [the] claim is

1-40     subject to a deductible payable by the insured, and a third party

1-41     may be liable to the insurer or the insured for the amount of the

1-42     deductible, the insurer shall bring an action to recover the

1-43     deductible against the third party not later than 12 [six] months

1-44     after payment of its insured's [the date the] claim [is made] or

1-45     pay the amount of the deductible to the insured.

1-46           (c)  Subsection (b) of this article does not apply if, not

1-47     later than 12 [six] months after the date the claim is paid [made],

1-48     the insurer notifies the insured in writing that the insurer does

1-49     [will] not intend to pursue further collection actions [bring an

1-50     action] against the third party and authorizes the insured to

1-51     pursue further collection actions [bring the action].

1-52           (d)  This article applies whether the third party who may be

1-53     liable for the amount of the deductible is insured or uninsured.

1-54           (e)  This article is intended to encourage insurers to take

1-55     appropriate and necessary steps to collect from third parties or

1-56     their insurers.  As used in this article, the phrase "bring an

1-57     action" is intended to include various courses of action such as

1-58     reasonable and diligent collection efforts, mediation, arbitration,

1-59     or litigation against responsible third parties or their insurers.

1-60           SECTION 2.  This Act takes effect September 1, 1997.

1-61           SECTION 3.  The importance of this legislation and the

1-62     crowded condition of the calendars in both houses create an

1-63     emergency and an imperative public necessity that the

1-64     constitutional rule requiring bills to be read on three several

 2-1     days in each house be suspended, and this rule is hereby suspended,

 2-2     and that this Act take effect and be in force from and after its

 2-3     passage, and it is so enacted.

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