79R2386 AJA-F
By: Leibowitz H.B. No. 693
A BILL TO BE ENTITLED
AN ACT
relating to required disclosure of certain information regarding
liability insurance coverage.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 542, Insurance Code, as effective April
1, 2005, is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. DISCLOSURES TO THIRD PARTY CLAIMANT
Sec. 542.251. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to the settlement of a claim under a liability
insurance policy that is delivered, issued for delivery, or renewed
in this state, including a policy written by:
(1) a county mutual insurance company;
(2) a Lloyd's plan;
(3) an eligible surplus lines insurer; or
(4) a reciprocal or interinsurance exchange.
Sec. 542.252. DISCLOSURE OF CERTAIN INFORMATION BY INSURER.
Not later than the 30th day after the date an insurer receives a
request from a third-party claimant whose claim may be covered by
liability insurance issued by the insurer, the insurer shall
provide to the third-party claimant:
(1) a copy of each insurance policy issued by the
insurer that provides liability coverage to an insured who may be
liable for the claimant's damages, including excess or umbrella
coverage; and
(2) a statement, under oath, of a corporate officer of
the insurer or the insurer's claims manager or superintendent that
includes, for each of those policies:
(A) the name of the insurer issuing the policy;
(B) the name of each named insured under the
policy;
(C) the limits of the liability coverage under
the policy; and
(D) any policy or coverage defense that the
insurer reasonably believes is available to the insurer at the time
the statement is made.
Sec. 542.253. DISCLOSURE OF CERTAIN INFORMATION BY INSURED
OR INSURED'S AGENT. (a) An insured or the insured's insurance
agent, on written request of a third-party claimant or the
claimant's attorney, shall provide a written statement to the
requestor that includes the name of each insurer providing
liability coverage to the insured and a description of the coverage
provided to the insured and shall forward a copy of the request to
each of those insurers.
(b) Not later than the 30th day after the date an insurer
receives a request under this section, the insurer shall provide
the information prescribed by Subsection (a) to the third-party
claimant.
Sec. 542.254. AMENDMENT OF STATEMENT; PROVISION OF CERTAIN
ADDITIONAL INFORMATION. (a) An insurer or other person who
provides a statement under this chapter and who, after providing
the statement, discovers a fact required to be included in a
statement under this subchapter shall immediately provide an
amended statement including that fact to the person who requested
the original statement.
(b) In addition to providing an amended statement under this
section, an insurer that discovers the existence of a policy
described by Section 542.252 that was not disclosed in the
statement provided under that section shall immediately provide a
copy of that policy to the third-party claimant.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.