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A BILL TO BE ENTITLED
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AN ACT
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relating to notice to an insurer of an adverse claim to policy |
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proceeds by a person with a bona fide legal claim. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 542.058(b), Insurance Code, is amended |
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to read as follows: |
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(b) This section does not apply: |
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(1) in a case in which it is found as a result of |
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arbitration or litigation that a claim received by an insurer is |
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invalid and should not be paid by the insurer; or |
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(2) if the insurer is on notice of an adverse claim to |
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the policy proceeds from a person who has a bona fide legal claim to |
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all or part of the proceeds. |
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SECTION 2. The change in law made by this Act applies only |
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to a claim filed with an insurer on or after the effective date of |
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this Act. A claim filed with an insurer before that date is |
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governed by the law in effect on the date that the claim was filed, |
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and the former law is continued in effect for that purpose. |
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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. |