78R473 DLF-D

By:  Seaman                                                       H.B. No. 101



A BILL TO BE ENTITLED

AN ACT

relating to mediation of certain claims involving unfair methods of 
competition or unfair or deceptive acts or practices in the 
business of insurance.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 16A(c), Article 21.21, Insurance Code, 
is amended to read as follows:
	(c)  A [If a mediation under Section 16B of this article is 
conducted, a] person against whom a claim under Section 16 of this 
article is pending may tender an offer of settlement during the 
period beginning on the day after the date that the mediation under 
Section 16B of this article ends and ending on the 20th day after 
that date.
	SECTION 2.  Sections 16B(a), (b), and (d), Article 21.21, 
Insurance Code, are amended to read as follows:
	(a)  Not [A party may, not] later than the 30th [90th] day 
after the date of service of a pleading in which relief under 
Section 16 of this article is sought, the court shall order [file a 
motion to compel] mediation of the dispute in the manner provided by 
this section.
	(b)  The [court shall, not later than the 30th day after the 
date a motion under this section is filed, sign an] order must set
[setting] the time and place of the mediation.
	(d)  Mediation shall be held within 90 [30] days after the 
date the order is signed[, unless the parties agree otherwise or the 
court determines that additional time, not to exceed an additional 
30 days, is warranted].
	SECTION 3.  Section 16A(b), Article 21.21, Insurance Code, 
is repealed.      
	SECTION 4.  This Act takes effect September 1, 2003, and 
applies only to a claim under Section 16, Article 21.21, Insurance 
Code, for which the first date of service of a pleading, as 
described by Section 16B(a), Article 21.21, Insurance Code, as 
amended by this Act, is on or after that date.  A claim for which the 
date of the service of that pleading is before September 1, 2003, is 
governed by the law applicable to the claim immediately before the 
effective date of this Act, and that law is continued in effect for 
that purpose.