77R8799 PB-D                           
         By Nixon, Noriega, Naishtat, Hochberg                  H.B. No. 845
         Substitute the following for H.B. No. 845:
         By Janek                                           C.S.H.B. No. 845
                                A BILL TO BE ENTITLED
 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 reasonably believes that a violation
2-24     of this article by an insurer has occurred, the commissioner may,
2-25     after notice and hearing:
2-26                 (1)  impose an administrative penalty under Chapter 84
2-27     of this code or direct the insurer to make restitution;
 3-1                 (2)  refer the matter to the attorney general for
 3-2     appropriate enforcement;
 3-3                 (3)  initiate an examination under Article 1.15 of this
 3-4     code to determine the fitness of the insurer to continue to engage
 3-5     in the business of insurance in this state;
 3-6                 (4)  initiate a proceeding to revoke or suspend the
 3-7     insurer's certificate of authority; or
 3-8                 (5)  pursue any other action the commissioner
 3-9     determines appropriate under this code or other applicable law.
3-10           Sec. 4.  EXPIRATION. This article expires January 1, 2013.
3-11           SECTION 2.  This Act takes effect immediately if it receives
3-12     a vote of two-thirds of all the members elected to each house, as
3-13     provided by Section 39, Article III, Texas Constitution.  If this
3-14     Act does not receive the vote necessary for immediate effect, this
3-15     Act takes effect September 1, 2001.