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.