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By: Duncan |
S.B. No. 1812 |
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(In the Senate - Filed March 11, 2009; March 20, 2009, read |
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first time and referred to Committee on State Affairs; |
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April 16, 2009, reported adversely, with favorable Committee |
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Substitute by the following vote: Yeas 7, Nays 0; April 16, 2009, |
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sent to printer.) |
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COMMITTEE SUBSTITUTE FOR S.B. No. 1812 |
By: Duncan |
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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: |
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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: |
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(A) a life insurer; and |
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(B) on notice of an adverse claim to life |
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insurance policy proceeds from a person who has a bona fide legal |
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claim to all or part of the proceeds. |
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(c) A life insurer eligible for the exemption described by |
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Subsection (b)(2) must pay the claim not later than the later of the |
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90th day after the date the insurer receives all items, statements, |
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and forms reasonably requested and required under Section 542.055 |
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or the 90th day after the date the insurer receives notice of the |
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adverse claim. Notwithstanding any other law, a life insurer that |
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delays payment of the claim under this subsection for more than 90 |
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days shall pay damages and other items as provided by Section |
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542.060. |
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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. |
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* * * * * |