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A BILL TO BE ENTITLED
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AN ACT
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relating to prompt payment of insurance claims. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 542.056(c) is amended to read as |
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follows: |
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(c) If the insurer rejects the claim, the notice required by |
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Subsection (a) or (b) must state the reasons for the rejection. An |
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insurer may not rely on any defense that was not stated as a reason |
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for rejection as required by this subsection, unless the court |
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finds that the insurer, in the exercise of reasonable diligence, |
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could not have known of the reason at the time notice was required. |
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SECTION 2. Section 542.060, Insurance Code, is amended to |
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read as follows: |
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Sec. 542.060. LIABILITY FOR VIOLATION OF SUBCHAPTER. (a) |
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If an insurer that is liable for a claim under an insurance policy |
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is not in compliance with this subchapter, the insurer is liable to |
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pay the holder of the policy or the beneficiary making the claim |
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under the policy, in addition to the amount of the claim, 18 percent |
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per annum of the amount of such claim as damages, plus prejudgment |
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interest, for each violation [interest on the amount of the claim at
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the rate of 18 percent a year as damages], together with reasonable |
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attorney's fees. |
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(b) Damages shall accrue beginning on the date of the |
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failure to comply, and continuing until the date of compliance. |
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Damages for a failure to pay continue to accrue on any unpaid |
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portion of the claim until the claim is paid in full. |
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(c) [(b)] If a suit is filed, the attorney's fees shall be |
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taxed as part of the costs in the case. |
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SECTION 3. Chapter 542, Subchapter B, Insurance Code, is |
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amended to add Section 542.062 to read as follows: |
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Sec. 542.062. APPLICATION TO UNINSURED/UNDERINSURED |
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MOTORIST COVERAGE. An insurer that receives notice of a claim for |
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uninsured/underinsured motorist benefits shall not require a final |
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adjudication of liability and shall not delay notice of acceptance |
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or rejection of a claim under Section 542.056 or payment of a claim |
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under Section 542.060 pending such final adjudication. |
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SECTION 4. This Act applies only to an action commenced on |
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or after the effective date of this Act. An action that is |
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commenced before the effective date of this Act is governed by the |
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law applicable to the action immediately before the effective date |
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of this Act, and that law is continued in effect for that purpose. |
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SECTION 5. 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. |