By Burnam H.B. No. 205
76R11516 DB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain insurance investigations regarding burglary or
1-3 robbery losses or death claims.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
1-6 amended by adding Article 21.49C to read as follows:
1-7 Art. 21.49C. REPORT OF CLAIMS INFORMATION ABOUT BURGLARY,
1-8 ROBBERY, OR DEATH. (a) The state fire marshal, the fire marshal
1-9 of a political subdivision in this state, the chief of a fire
1-10 department in this state, a chief of police of a municipality in
1-11 this state, or a sheriff in this state may, in the course of a
1-12 criminal investigation, request in writing that an insurance
1-13 company investigating a claimed burglary or robbery loss or a death
1-14 claim seeking life insurance proceeds release information in its
1-15 possession relative to that claimed loss. The company shall
1-16 release the information to and cooperate with any official
1-17 authorized to request the information under this article. The
1-18 information may include but may not exceed:
1-19 (1) an insurance policy relevant to an insurance claim
1-20 under investigation and the application for that policy;
1-21 (2) policy premium payment records;
1-22 (3) the history of previous claims made by the
1-23 insured; and
1-24 (4) material relating to the investigation of the
2-1 insurance claim, including statements of any person, proof of loss,
2-2 or other relevant evidence.
2-3 (b) This article does not authorize a public official or
2-4 agency to adopt or require any form of periodic report by an
2-5 insurer.
2-6 (c) If an insurance company receives a request for
2-7 information under Subsection (a) of this article regarding a claim
2-8 that the insurance company has reason to believe is false,
2-9 fraudulent, or exaggerated, the company shall:
2-10 (1) notify the requesting official;
2-11 (2) furnish that official with all relevant material
2-12 acquired during the company's investigation of the insurance claim;
2-13 (3) cooperate with and take action as requested by any
2-14 law enforcement agency; and
2-15 (4) permit any person ordered by a court to inspect
2-16 its records relating to the policy and the loss.
2-17 (d) In the absence of fraud or malice, an insurance company
2-18 or a person who furnishes information on behalf of an insurance
2-19 company is not liable for damages in a civil action or subject to
2-20 criminal prosecution for an oral or written statement made, or any
2-21 other action taken, that is necessary to supply information
2-22 required under this article.
2-23 (e) The officials and department personnel receiving
2-24 information under this article shall maintain the information in
2-25 confidence until the release of the information is required during
2-26 a criminal or civil proceeding.
2-27 (f) An official subject to Subsection (a) of this article
3-1 may be required to testify regarding information in the official's
3-2 possession relating to the insurance claim in a civil action in
3-3 which a person seeks recovery under an insurance policy against an
3-4 insurance company for the insurance claim.
3-5 (g) An insurer or its representative may not intentionally:
3-6 (1) refuse to release information requested under
3-7 Subsection (a) of this article;
3-8 (2) refuse to notify an official subject to Subsection
3-9 (a) of this article of an insurance claim required to be reported
3-10 under Subsection (c) of this article;
3-11 (3) refuse to supply an official subject to Subsection
3-12 (a) of this article with pertinent information required to be
3-13 furnished under Subsection (c) of this article; or
3-14 (4) violate the confidentiality requirements imposed
3-15 under Subsection (e) of this article.
3-16 SECTION 2. This Act takes effect September 1, 1999, and
3-17 applies only to a claim for a burglary or robbery loss or a death
3-18 claim seeking life insurance proceeds that is filed with an
3-19 insurance company on or after that date.
3-20 SECTION 3. The importance of this legislation and the
3-21 crowded condition of the calendars in both houses create an
3-22 emergency and an imperative public necessity that the
3-23 constitutional rule requiring bills to be read on three several
3-24 days in each house be suspended, and this rule is hereby suspended.