By Burnam                                              H.B. No. 205
         76R186 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, or a peace officer in this state may
1-11     request an insurance company investigating a claimed burglary or
1-12     robbery loss or a death claim seeking life insurance proceeds to
1-13     release information in its possession relative to that claimed
1-14     loss.  The company shall release the information to and cooperate
1-15     with any official authorized to request the information under this
1-16     article.  The information may include but may not exceed:
1-17                 (1)  an insurance policy relevant to an insurance claim
1-18     under investigation and the application for that policy;
1-19                 (2)  policy premium payment records;
1-20                 (3)  the history of previous claims made by the
1-21     insured; and
1-22                 (4)  material relating to the investigation of the
1-23     insurance claim, including statements of any person, proof of loss,
1-24     or other relevant evidence.
 2-1           (b)  This article does not  authorize a public official or
 2-2     agency to adopt or require any form of periodic report by an
 2-3     insurer.
 2-4           (c)  If an insurance company receives a request for
 2-5     information under Subsection (a) of this article regarding a claim
 2-6     that the insurance company has reason to believe is false,
 2-7     fraudulent, or exaggerated, the company shall:
 2-8                 (1)  notify the requesting official;
 2-9                 (2)  furnish that official with all relevant material
2-10     acquired during the company's investigation of the insurance claim;
2-11                 (3)  cooperate with and take action as requested by any
2-12     law enforcement agency; and
2-13                 (4)  permit any person ordered by a court to inspect
2-14     its records relating to the policy and the loss.
2-15           (d)  In the absence of fraud or malice, an insurance company
2-16     or a person who furnishes information on behalf of an insurance
2-17     company is not liable for damages in a civil action or subject to
2-18     criminal prosecution for an oral or written statement made, or any
2-19     other action taken, that is necessary to supply information
2-20     required under this article.
2-21           (e)  The officials and department personnel receiving
2-22     information under this article shall maintain the information in
2-23     confidence until the release of the information is required during
2-24     a criminal or civil proceeding.
2-25           (f)  An official subject to Subsection (a) of this article
2-26     may be required to testify regarding information in the official's
2-27     possession relating to the insurance claim in a civil action in
 3-1     which a person seeks recovery under an insurance policy against an
 3-2     insurance company for the insurance claim.
 3-3           (g)  A person may not intentionally:
 3-4                 (1)  refuse to release information requested under
 3-5     Subsection (a) of this article;
 3-6                 (2)  refuse to notify an official subject to Subsection
 3-7     (a) of this article of an insurance claim required to be reported
 3-8     under Subsection (c) of this article;
 3-9                 (3)  refuse to supply an official subject to Subsection
3-10     (a) of this article with pertinent information required to be
3-11     furnished under Subsection (c) of this article; or
3-12                 (4)  violate the confidentiality requirements imposed
3-13     under Subsection (e) of this article.
3-14           SECTION 2.  This Act takes effect September 1, 1999, and
3-15     applies only to a claim for a burglary or robbery loss or a death
3-16     claim seeking life insurance proceeds that is filed with an
3-17     insurance company on or after that  date.
3-18           SECTION 3.  The importance of this legislation and the
3-19     crowded condition of the calendars in both houses create an
3-20     emergency and an imperative public necessity that the
3-21     constitutional rule requiring bills to be read on three several
3-22     days in each house be suspended, and this rule is hereby suspended.