By Burnam                                              H.B. No. 186
         77R714 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain insurance investigations regarding burglary or
 1-3     robbery losses or death claims.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is
 1-6     amended by adding Article 21.49C to read as follows:
 1-7           Art. 21.49C.  REPORT OF CLAIMS INFORMATION ABOUT BURGLARY,
 1-8     ROBBERY, OR DEATH. (a)  Subject to Subsection (b), the state fire
 1-9     marshal, the fire marshal of a political subdivision in this state,
1-10     the chief of a fire department in this state, a chief of police of
1-11     a municipality in this state, or a sheriff in this state may, in
1-12     the course of a criminal investigation, request in writing that an
1-13     insurance company investigating a claimed burglary or robbery loss
1-14     or a death claim seeking life insurance proceeds release
1-15     information in the company's possession that relates to that
1-16     claimed loss.  The company shall release the information to and
1-17     cooperate with any official authorized to request the information
1-18     under this article.
1-19           (b)  An official who requests information under this article
1-20     may not request anything other than:
1-21                 (1)  an insurance policy relevant to an insurance claim
1-22     under investigation and the application for that policy;
1-23                 (2)  policy premium payment records;
1-24                 (3)  the history of previous claims made by the
 2-1     insured; and
 2-2                 (4)  material relating to the investigation of the
 2-3     insurance claim, including statements of any person, proof of loss,
 2-4     or other relevant evidence.
 2-5           (c)  This article does not authorize a public official or
 2-6     agency to adopt or require any form of periodic report by an
 2-7     insurer.
 2-8           (d)  If an insurance company receives a request for
 2-9     information under Subsection (a) of this article regarding a claim
2-10     that the insurance company has reason to believe is false,
2-11     fraudulent, or exaggerated, the company shall:
2-12                 (1)  notify the requesting official;
2-13                 (2)  furnish that official with all relevant material
2-14     acquired during the company's investigation of the insurance claim;
2-15                 (3)  cooperate with and take action as requested by any
2-16     law enforcement agency; and
2-17                 (4)  permit an inspection of the company's records
2-18     relating to the policy and the loss by any person ordered by a
2-19     court to inspect those records.
2-20           (e)  In the absence of fraud or malice, an insurance company
2-21     or a person who furnishes information on behalf of an insurance
2-22     company is not liable for damages in a civil action or subject to
2-23     criminal prosecution for an oral or written statement made, or any
2-24     other action taken, that is necessary to supply information
2-25     required under this article.
2-26           (f)  The officials and department personnel receiving
2-27     information under this article shall maintain the information in
 3-1     confidence until the release of the information is required during
 3-2     a criminal or civil proceeding.
 3-3           (g)  An official described by Subsection (a) of this article
 3-4     may be required to testify regarding information in the official's
 3-5     possession relating to the insurance claim in a civil action in
 3-6     which a person seeks recovery under an insurance policy against an
 3-7     insurance company for the insurance claim.
 3-8           (h)  An insurer or the insurer's representative may not
 3-9     intentionally:
3-10                 (1)  refuse to release information requested under
3-11     Subsection (a) of this article;
3-12                 (2)  refuse to notify an official described by
3-13     Subsection (a) of this article of an insurance claim required to be
3-14     reported under Subsection (d) of this article;
3-15                 (3)  refuse to supply an official described by
3-16     Subsection (a) of this article with pertinent information required
3-17     to be furnished under Subsection (d) of this article; or
3-18                 (4)  violate the confidentiality requirements imposed
3-19     under Subsection (f) of this article.
3-20           SECTION 2.  This Act takes effect September 1, 2001, and
3-21     applies only to a claim for a burglary or robbery loss or a death
3-22     claim seeking life insurance proceeds that is filed with an
3-23     insurance company on or after that date.