78R5327 AKH-F

By:  Taylor                                                       H.B. No. 1706



A BILL TO BE ENTITLED

AN ACT

relating to the recovery of certain costs and payments relating to 
losses covered by personal automobile insurance.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is 
amended by adding Article 21.79H to read as follows:
	Art. 21.79H.  RECOVERY OF CERTAIN COSTS FROM THIRD PARTY.  
(a)  This article applies to any insurer who delivers, issues for 
delivery, or renews a private passenger automobile policy of 
insurance in this state, including an exchange operating under 
Chapter 942, or a mutual, reciprocal, association, Lloyd's plan, or 
other insurer.
	(b)  In this article, "brings an action" has the meaning 
described by Article 21.79G(e) of this code.
	(c)  An insurer that brings an action against a responsible 
third party or that party's insurer relating to a loss covered under 
a private passenger automobile insurance policy is entitled to 
recover, in addition to payments made by the insurer or insured, the 
costs of bringing the action, including reasonable attorney's fees 
and court costs.
	SECTION 2.  Article 5.06-3, Insurance Code, is amended by 
amending Subsection (c) and adding Subsection (i) to read as 
follows:
	(c)  The benefits required by this Act shall be payable 
without regard to the fault or non-fault of the named insured or the 
recipient in causing or contributing to the accident, and without 
regard to any collateral source of medical, hospital, or wage 
continuation benefits.  Except as provided by Subsection (i) of 
this article, an [An] insurer paying benefits pursuant to this Act 
shall have no right of subrogation and no claim against any other 
person or insurer to recover any such benefits by reason of the 
alleged fault of such other person in causing or contributing to the 
accident.
	(i)  An insurer paying benefits pursuant to this Act shall 
have a right of subrogation and a claim against a person causing or 
contributing to the accident if, on the date of loss, financial 
responsibility as required by Chapter 601, Transportation Code, has 
not been established for a motor vehicle involved in the accident 
and operated by that person or the motor vehicle operated by that 
person was insured by an insurer not authorized to engage in 
business in this state.
	SECTION 3.  The change in law made by this Act applies only 
to an action commenced on or after January 1, 2004.  An action 
commenced before that date is governed by the law as it existed 
immediately before the effective date of this Act, and that law is 
continued in effect for that purpose.
	SECTION 4.  The change in law made by this Act to Article 
5.06-3, Insurance Code, applies only to an insurance policy 
delivered, issued for delivery, or renewed on or after January 1, 
2004. A policy delivered, issued for delivery, or renewed before 
January 1, 2004, is governed by the law as it existed immediately 
before the effective date of this Act, and that law is continued in 
effect for that purpose.
	SECTION 5.  This Act takes effect September 1, 2003.