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A BILL TO BE ENTITLED
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AN ACT
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relating to certain required notifications regarding insurance |
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claims and premiums. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 542.056, Insurance Code, is amended by |
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adding Subsections (e), (f), and (g) to read as follows: |
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(e) If an insurer pays a claim not later than the 15th |
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business day after the date the insurer receives all items, |
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statements, and forms required by the insurer to secure final proof |
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of loss, or not later than the 30th day if the insurer has a |
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reasonable basis to believe that the loss that is the subject of the |
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claim resulted from arson, the payment of the claim constitutes |
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notice of acceptance and, notwithstanding Subsection (a), the |
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insurer is not required to provide any other notice under this |
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section. |
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(f) If an insurer makes a partial payment under this section |
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or rejects any portion of a claim, the insurer shall include a |
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written notice with the partial payment that states the reason for |
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the rejection. |
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(g) For purposes of Subsections (e) and (f), payment |
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includes an electronic funds transfer to an account identified by |
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the claimant. |
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SECTION 2. Section 550.002, Insurance Code, is amended by |
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amending Subsection (b) and adding Subsections (b-1) and (b-2) to |
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read as follows: |
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(b) An insurer receiving automatic premium payments through |
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withdrawal of funds from a person's account, including an escrow |
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account, as authorized by that person to pay premiums on insurance |
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coverage provided through that insurer, may not increase the amount |
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of funds to be withdrawn from the account to pay premiums on that |
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coverage unless[:
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[(1)] the insurer, not later than the 30th day before |
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the effective date of the increase in the premium payment amount, |
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notifies the person of the increase by mailing a notice through the |
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United States Postal Service. |
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(b-1) The notice must include the insurer's toll-free |
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telephone number, mailing address, and electronic mail address, if |
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applicable, through which the [and provides the] person [a postage
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prepaid form that] may [be used to] object to the increase described |
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by Subsection (b). An objection made by the policyholder through a |
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telephone call, mail, or electronic mail constitutes a valid |
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objection for purposes of this section. |
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(b-2) The insurer may increase the amount of funds to be |
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withdrawn from the account only if [; and
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[(2) neither] the insurer does not receive a valid |
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[nor the financial institution receives written] objection to the |
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increase on or before the fifth day before the date on which the |
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increase is scheduled to take [takes] effect. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |
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