By Flores                                              H.B. No. 643
         76R520 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain insurers' ability to collect the amount of a
 1-3     motor vehicle insurance claim under a right of subrogation.
 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 5.06-8 to read as follows:
 1-7           Art. 5.06-8.  COLLECTION OF AN AMOUNT CLAIMED UNDER A RIGHT
 1-8     OF SUBROGATION.  (a)  In this article, "insurer" means an insurance
 1-9     company, interinsurance exchange, mutual, capital stock company,
1-10     fraternal benefit society, local mutual aid association, county
1-11     mutual, reciprocal, association, Lloyd's plan, or other entity
1-12     writing motor vehicle insurance in this state.  The term includes
1-13     an affiliate, as defined by Section 2, Article 21.49-1, of this
1-14     code.
1-15           (b)  An insurer pursuing a claim against a person under a
1-16     right of subrogation must obtain a judgment or written settlement
1-17     agreement for the amount of the claim before the insurer may:
1-18                 (1)  engage a third party not employed by the insurer
1-19     to collect the amount of the claim from the person; or
1-20                 (2)  submit information to a credit reporting bureau
1-21     regarding the amount of the claim or the person's failure to pay
1-22     the amount of the claim.
1-23           (c)  An insurer who violates this article commits an unfair
1-24     or deceptive act or practice as defined by Article 21.21 of this
 2-1     code and is subject to each penalty and sanction imposed under that
 2-2     article.
 2-3           SECTION 2.  This Act takes effect September 1, 1999, and
 2-4     applies only to a claim that accrues on or after the effective date
 2-5     of this Act.  A claim that accrues before the effective date of
 2-6     this Act is governed by the law as it existed immediately before
 2-7     the effective date of this Act, and that law is continued in effect
 2-8     for that purpose.
 2-9           SECTION 3.  The importance of this legislation and the
2-10     crowded condition of the calendars in both houses create an
2-11     emergency and an imperative public necessity that the
2-12     constitutional rule requiring bills to be read on three several
2-13     days in each house be suspended, and this rule is hereby suspended.