By Lewis of Tarrant H.B. No. 3177 76R6537 AJA-F 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 be 1-17 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, a 1-20 covered claim shall not include any claim filed with the guaranty 1-21 association after the later of the final date for filing claims 1-22 against the liquidator or receiver of an insolvent insurer, 1-23 including a date established under Section 3(b), Article 21.28, of 1-24 this code, or eighteen months after the order of liquidation. 2-1 SECTION 2. This Act takes effect September 1, 1999, and 2-2 applies only to payment of covered claims with respect to a 2-3 designation of impairment made on or after the effective date of 2-4 this Act. Payment of a covered claim with respect to a designation 2-5 of impairment made before the effective date of this Act is 2-6 governed by the law as it existed immediately before the effective 2-7 date of this Act, and that law is continued in effect for that 2-8 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.