By: Hancock H.B. No. 3221
  COMMITTEE SUBSTITUTE FOR H.B. No. 3221By:  Estes By:  Estes
         (In the Senate - Received from the House May 13, 2009;
  May 14, 2009, read first time and referred to Committee on Business
  and Commerce; May 23, 2009, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 9, Nays 0;
  May 23, 2009, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to certain required notifications regarding insurance
  claims and premiums.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 542.056, Insurance Code, is amended by
  adding Subsections (e), (f), and (g) to read as follows:
         (e)  If an insurer pays a claim not later than the 15th
  business day after the date the insurer receives all items,
  statements, and forms required by the insurer to secure final proof
  of loss, or not later than the 30th day if the insurer has a
  reasonable basis to believe that the loss that is the subject of the
  claim resulted from arson, the payment of the claim constitutes
  notice of acceptance and, notwithstanding Subsection (a), the
  insurer is not required to provide any other notice under this
  section.
         (f)  If an insurer makes a partial payment under this section
  or rejects any portion of a claim, the insurer shall include a
  written notice with the partial payment that states the reason for
  the rejection.
         (g)  For purposes of Subsections (e) and (f), payment
  includes an electronic funds transfer to an account identified by
  the claimant.
         SECTION 2.  Section 550.002, Insurance Code, is amended by
  amending Subsection (b) and adding Subsections (b-1) and (b-2) to
  read as follows:
         (b)  An insurer receiving automatic premium payments through
  withdrawal of funds from a person's account, including an escrow
  account, as authorized by that person to pay premiums on insurance
  coverage provided through that insurer, may not increase the amount
  of funds to be withdrawn from the account to pay premiums on that
  coverage unless[:
               [(1)]  the insurer, not later than the 30th day before
  the effective date of the increase in the premium payment amount,
  notifies the person of the increase by mailing a notice through the
  United States Postal Service.
         (b-1)  The notice must include the insurer's toll-free
  telephone number, mailing address, and electronic mail address, if
  applicable, through which the [and provides the] person [a postage
  prepaid form that] may [be used to] object to the increase described
  by Subsection (b). An objection made by the policyholder through a
  telephone call, mail, or electronic mail constitutes a valid
  objection for purposes of this section.
         (b-2)  The insurer may increase the amount of funds to be
  withdrawn from the account only if [; and
               [(2)  neither] the insurer does not receive a valid
  [nor the financial institution receives written] objection to the
  increase on or before the fifth day before the date on which the
  increase is scheduled to take [takes] effect.
         SECTION 3.  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, 2009.
 
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