76R7197 DLF-D                           
         By Puente                                             H.B. No. 1533
         Substitute the following for H.B. No. 1533:
         By Wise                                           C.S.H.B. No. 1533
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain practices relating to the use of attorneys by
 1-3     insurance claimants.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 21, Insurance Code, is
 1-6     amended by adding Article 21.21C to read as follows:
 1-7           Art. 21.21C.  UNFAIR PRACTICES RELATING TO USE OF ATTORNEYS
 1-8     FOR CERTAIN CLAIMS.  (a)  In this article:
 1-9                 (1)  "Claimant" means an individual or entity known or
1-10     believed to have a claim against an insured for damage to or
1-11     destruction of property, bodily injury, or wrongful death.
1-12                 (2)  "Person" has the meaning assigned by Section 2,
1-13     Article 21.21, of this code.
1-14           (b)  A person may not make or permit to be made a written or
1-15     oral communication to a claimant that in any manner discourages the
1-16     claimant from obtaining the services of an attorney to represent
1-17     the claimant with respect to the claimant's claim.
1-18           (c)  A person commits an unfair and deceptive act or practice
1-19     in the business of insurance if the person violates Subsection (b)
1-20     of this article and is subject to each penalty and other sanction
1-21     provided by Article 21.21 of this code for that violation.
1-22           (d)  The commissioner may adopt rules to implement this
1-23     article.
1-24           SECTION 2.  This Act takes effect September 1, 1999, and
 2-1     applies only to a communication made on or after January 1, 2000.
 2-2     A communication that is made before January 1, 2000, is governed by
 2-3     the law as it existed immediately before the effective date of this
 2-4     Act, and that law is continued in effect for that purpose.
 2-5           SECTION 3.  The importance of this legislation and the
 2-6     crowded condition of the calendars in both houses create an
 2-7     emergency and an imperative public necessity that the
 2-8     constitutional rule requiring bills to be read on three several
 2-9     days in each house be suspended, and this rule is hereby suspended.