H.B. No. 1572
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 that delivers, issues for
delivery, or renews a private passenger automobile insurance policy
in this state, including a county mutual, a reciprocal or
interinsurance exchange, or a Lloyd's plan.
(b) An insurer that brings suit or takes other action
described by Section 542.202 of this code against a responsible
third party relating to a loss that is covered under a private
passenger automobile insurance policy issued by the insurer and for
which the responsible third party is uninsured is entitled to
recover, in addition to payments made by the insurer or insured, the
costs of bringing the suit or taking 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
(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
(i) An insurer paying benefits pursuant to this Act,
including a county mutual insurance company, 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.
SECTION 3. The change in law made by this Act applies only
to an action commenced on or after January 1, 2006. 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,
2006. A policy delivered, issued for delivery, or renewed before
January 1, 2006, 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, 2005.
President of the Senate Speaker of the House
I certify that H.B. No. 1572 was passed by the House on May
10, 2005, by a non-record vote.
Chief Clerk of the House
I certify that H.B. No. 1572 was passed by the Senate on May
25, 2005, by the following vote: Yeas 31, Nays 0.
Secretary of the Senate