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.