1-1                                   AN ACT
 1-2     relating to suspension of certain limitations periods applicable to
 1-3     insurance policies issued to or covering Holocaust victims;
 1-4     providing an administrative penalty.
 1-6           SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
 1-7     amended by adding Article 21.74 to read as follows:
1-10           Sec. 1.  DEFINITIONS. In this article:
1-11                 (1)  "Holocaust victim" means a person who was killed
1-12     or injured, or who lost real or personal property or financial
1-13     assets, as the result of discriminatory laws, policies, or actions
1-14     directed against any discrete group of which the person was a
1-15     member, during the period of 1920 to 1945, inclusive, in Germany,
1-16     areas occupied by Germany, or countries allied with Germany.
1-17                 (2)  "Insurer" means an insurance company or other
1-18     entity engaged in the business of insurance or reinsurance in this
1-19     state.  The term includes:
1-20                       (A)  a capital stock company, a mutual company,
1-21     or a Lloyd's plan; and
1-22                       (B)  any parent, subsidiary, or affiliated
1-23     company, at least 50 percent of the stock of which is in common
1-24     ownership with an insurer engaged in the business of insurance in
 2-1     this state.
 2-2                 (3)  "Insurance policy" includes a life insurance
 2-3     policy, an annuity, a property insurance policy, a casualty
 2-4     insurance policy, and a liability insurance policy.  The term
 2-5     includes reinsurance on a risk covered under such a policy.
 2-6           Sec. 2.  SUSPENSION OF LIMITATIONS PERIOD. (a)
 2-7     Notwithstanding any other law, a Holocaust victim, or the heir,
 2-8     assignee, beneficiary, or successor of a Holocaust victim, who
 2-9     resides in this state and has a claim arising out of an insurance
2-10     policy purchased or in effect in Europe before 1946 that was
2-11     delivered, issued for delivery, or renewed by an insurer may bring
2-12     an action against an insurer to recover on that claim in a court of
2-13     competent jurisdiction in this state.
2-14           (b)  An action brought under Subsection (a) of this section
2-15     may not be dismissed for failure to comply with any applicable
2-16     limitations period if the action is brought before December 31,
2-17     2012.
2-18           Sec. 3.  ENFORCEMENT. (a)  Failure by an insurer to comply
2-19     with a claim brought under this article by denying the claim on the
2-20     grounds that the claim is not timely or by asserting a statute of
2-21     limitations defense in an action brought under Section 2(a) of this
2-22     article constitutes a violation of this article.
2-23           (b)  If the commissioner considers it to be necessary, the
2-24     commissioner may initiate an examination under Article 1.15 of this
2-25     code.
2-26           (c)  If the commissioner believes that a violation of this
2-27     article by an insurer has occurred or is occurring, the
 3-1     commissioner may:
 3-2                 (1)  impose sanctions under Chapter 82 of this code;
 3-3                 (2)  issue a cease and desist order under Chapter 83 of
 3-4     this code;
 3-5                 (3)  assess an administrative penalty under Chapter 84
 3-6     of this code; or
 3-7                 (4)  refer the matter to the attorney general for
 3-8     appropriate enforcement.
 3-9           SECTION 2.  This Act takes effect immediately if it receives
3-10     a vote of two-thirds of all the members elected to each house, as
3-11     provided by Section 39, Article III, Texas Constitution.  If this
3-12     Act does not receive the vote necessary for immediate effect, this
3-13     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 845 was passed by the House on April
         18, 2001, by the following vote:  Yeas 149, Nays 0, 1 present, not
                                                 Chief Clerk of the House
               I certify that H.B. No. 845 was passed by the Senate on May
         15, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
                                                 Secretary of the Senate
         APPROVED:  __________________________