By Uresti H.B. No. 3346
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the ability of a motor vehicle insurer to obtain a
1-3 release from liability or obtain certain statements with respect to
1-4 a motor vehicle accident; providing a penalty.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is
1-7 amended by adding Article 5.06-8 to read as follows:
1-8 Art. 5.06-8. RELEASE FROM LIABILITY; PROHIBITION; PENALTY
1-9 Sec. 1. DEFINITIONS. In this article:
1-10 (1) "Motor vehicle insurer" means an insurance company
1-11 or other entity that is authorized to write motor vehicle insurance
1-12 in this state, including:
1-13 (A) a farm mutual insurance company;
1-14 (B) a county mutual insurance company;
1-15 (C) a Lloyd's plan insurer; and
1-16 (D) a reciprocal or interinsurance exchange.
1-17 (2) "Release agreement" means:
1-18 (A) an agreement between an insured or an
1-19 insurer and an actual or potential third party claimant that:
1-20 (i) releases the insured or the insurer
1-21 from liability with respect to a motor vehicle accident; or
1-22 (ii) establishes the amount of liability
1-23 of the insurer or insured to the actual or potential third party
2-1 claimant with respect to a motor vehicle accident; or
2-2 (B) an agreement between an insured and an
2-3 insurer that:
2-4 (i) releases the insurer from liability
2-5 with respect to a motor vehicle accident; or
2-6 (ii) establishes the amount of liability
2-7 of the insurer to the insured with respect to a motor vehicle
2-8 accident.
2-9 (3) "Representative" means an agent, broker, adjuster,
2-10 or other representative of a motor vehicle insurer.
2-11 Sec. 2. PROHIBITION. (a) A representative of a motor
2-12 vehicle insurer may not:
2-13 (1) obtain or attempt to obtain a release agreement
2-14 from a person on or before the 30th day after the date of the motor
2-15 vehicle accident that is the subject of the release agreement; or
2-16 (2) except as provided by the Texas Rules of Civil
2-17 Procedure, obtain or attempt to obtain from an actual or potential
2-18 third party claimant, for the purpose of negotiating a release
2-19 agreement, a written or oral statement regarding a motor vehicle
2-20 accident on or before the 15th day after the date of the accident.
2-21 (b) A release agreement obtained in violation of Subsection
2-22 (a)(1) of this section is voidable by the person from whom the
2-23 release agreement was obtained.
2-24 (c) A statement obtained in violation of Subsection (a)(2)
2-25 of this section is not admissible against the person who made the
2-26 statement in an action relating to damages arising out of the motor
3-1 vehicle accident that is the subject of the statement.
3-2 Sec. 3. PENALTY. An insurer or a representative of an
3-3 insurer who violates this article is subject to an administrative
3-4 penalty under Chapter 84 of this code.
3-5 SECTION 2. (a) This Act takes effect September 1, 2001.
3-6 (b) Article 5.06-8, Insurance Code, as added by this Act,
3-7 applies only to a release agreement or statement obtained in
3-8 connection with a motor vehicle accident that occurs on or after
3-9 the effective date of this Act. A release agreement or statement
3-10 obtained in connection with a motor vehicle accident that occurs
3-11 before the effective date of this Act is governed by the law in
3-12 effect immediately before the effective date of this Act, and that
3-13 law is continued in effect for that purpose.