By Puente H.B. No. 249
76R521 AJA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain requirements imposed by certain insurers as a
1-3 condition of settlement of a motor vehicle insurance claim.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is
1-6 amended by adding Article 5.06-7 to read as follows:
1-7 Art. 5.06-7. SETTLEMENT OF CLAIM; REQUIRED STATEMENT OF
1-8 FACTS. (a) In this article, "insurer" means an insurance company,
1-9 interinsurance exchange, mutual, capital stock company, fraternal
1-10 benefit society, local mutual aid association, county mutual,
1-11 reciprocal, association, Lloyd's plan, or other entity writing
1-12 motor vehicle insurance in this state. The term includes an
1-13 affiliate, as defined by Section 2, Article 21.49-1, of this code.
1-14 (b) An insurer may not require a third party claimant to
1-15 give a statement of the facts relating to a motor vehicle insurance
1-16 claim as a condition of determining whether to pay or settle the
1-17 claim unless the third party claimant is given an opportunity to
1-18 obtain a statement in a similar format from the insurer's insured.
1-19 This article does not apply if the insured is unable to give a
1-20 statement for a reason outside the insurer's control.
1-21 SECTION 2. This Act takes effect September 1, 1999, and
1-22 applies only to a motor vehicle insurance claim that accrues on or
1-23 after the effective date of this Act. A claim that accrues before
1-24 the effective date of this Act is governed by the law as it existed
2-1 immediately before the effective date of this Act, and that law is
2-2 continued in effect for that purpose.
2-3 SECTION 3. The importance of this legislation and the
2-4 crowded condition of the calendars in both houses create an
2-5 emergency and an imperative public necessity that the
2-6 constitutional rule requiring bills to be read on three several
2-7 days in each house be suspended, and this rule is hereby suspended.