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A BILL TO BE ENTITLED
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AN ACT
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relating to notice to a life 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, Insurance Code, is amended by |
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amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) Subsection (a) [This section] does not apply in a case |
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in which it is found as a result of arbitration or litigation that a |
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claim received by an insurer is invalid and should not be paid by |
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the insurer. |
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(c) A life insurer that receives notice of an adverse, bona |
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fide claim to all or part of the proceeds of the policy before the |
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applicable payment deadline under Subsection (a) shall pay the |
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claim or properly file an interpleader action and tender the |
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benefits into the registry of the court not later than the 90th day |
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after the date the insurer receives all items, statements, and |
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forms reasonably requested and required under Section 542.055. A |
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life insurer that delays payment of the claim or the filing of an |
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interpleader and tender of policy proceeds for more than 90 days |
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shall pay damages and other items as provided by Section 542.060 |
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until the claim is paid or an interpleader is properly filed. |
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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 a life insurer on or after the effective date |
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of this Act. A claim filed with a life 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. |