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.