By Averitt H.B. No. 338 77R2228 AJA-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to information related to criminal activity, fraud, 1-3 material misrepresentation, or nondisclosure in connection with an 1-4 insurance transaction. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is 1-7 amended by adding Article 21.79H to read as follows: 1-8 Art. 21.79H. INFORMATION RELATING TO MISCONDUCT IN INSURANCE 1-9 TRANSACTION. (a) In this article, "person" includes: 1-10 (1) an insurer; 1-11 (2) a self-insurer; 1-12 (3) an insurance support organization; 1-13 (4) an agent or third-party administrator licensed 1-14 under this code or an insurance law of this state; 1-15 (5) an employee of an entity described by Subdivisions 1-16 (1)-(4) of this subsection; or 1-17 (6) a regulatory authority. 1-18 (b) A person may collect, compile, or furnish to or exchange 1-19 with any other person information to the extent the person 1-20 collecting, compiling, furnishing, or exchanging the information 1-21 considers reasonably necessary to detect or prevent criminal 1-22 activity, fraud, material misrepresentation, or material 1-23 nondisclosures in connection with: 1-24 (1) filing an insurance claim; or 2-1 (2) making a claim against any individual or any 2-2 business, governmental, or other entity if indemnification by a 2-3 liability insurance policy of the individual or entity is 2-4 contemplated. 2-5 (c) A person who collects, compiles, or furnishes to or 2-6 exchanges with another person information described by Subsection 2-7 (b) of this article is not liable in a civil action or subject to 2-8 criminal prosecution because of that action. This subsection does 2-9 not apply if the person acts with malice or with the intent to 2-10 defraud. 2-11 SECTION 2. This Act takes effect September 1, 2001. 2-12 COMMITTEE AMENDMENT NO. 1 2-13 Amend H.B. 338 as follows: 2-14 (1) On page 1, strike lines 13 and 14 2-15 (2) On page 1, line 19, strike "to the extent the person" 2-16 and substitute "only to the extent that" 2-17 (3) On page 1, line 21, strike "considers" and substitute 2-18 "is" 2-19 (4) On page 2, Subsection (c), add at the end the following: 2-20 "Nothing in this subsection shall be construed so as to prevent a 2-21 civil action against, or criminal prosecution of a person for 2-22 misuse of information furnished, exchanged, collected, or compiled, 2-23 as outlined in Subsection (b) of this article." 2-24 Olivo