By Lewis of Tarrant H.B. No. 3177
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to payment of claims by the Texas Property and Casualty
1-3 Insurance Guaranty Association.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 8(d), Article 21.28-C, Insurance Code, is
1-6 amended to read as follows:
1-7 (d) The association shall investigate and adjust,
1-8 compromise, settle, and pay covered claims to the extent of the
1-9 association's obligation and deny all other claims. The
1-10 association may review settlements, releases, and judgments to
1-11 which the impaired insurer or its insureds were parties to
1-12 determine the extent to which those settlements, releases, and
1-13 judgments may be properly contested. Any judgment taken by default
1-14 or consent against an insured or the impaired insurer, [and any
1-15 settlement, release, or judgment entered into by the insured or the
1-16 impaired insurer,] is not binding on the association, and may not
1-17 be considered as evidence of liability or of damages in connection
1-18 with any claim brought against the association or any other party
1-19 under this Act. Notwithstanding any other provision of this Act or
1-20 of Article 21.28 of this code, a covered claim shall not include
1-21 any claim filed with the guaranty association after [the later of
1-22 the final date for filing claims against the liquidator or receiver
1-23 of an insolvent insurer or] eighteen months following [after] the
1-24 order of impairment unless the court shall find that a compelling
2-1 reason exists for the time to be extended to address unusual or
2-2 extenuating circumstances [liquidation].
2-3 SECTION 2. This Act is intended to clarify the law as it
2-4 existed immediately before the effective date of this Act and
2-5 applies to payment of covered claims with respect to a designation
2-6 of impairment made before, on, or after the effective date of this
2-7 Act.
2-8 SECTION 3. The importance of this legislation and the
2-9 crowded condition of the calendars in both houses create an
2-10 emergency and an imperative public necessity that the
2-11 constitutional rule requiring bills to be read on three several
2-12 days in each house be suspended, and this rule is hereby suspended.