| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to certain unfair practices in the settlement of insurance |
|
|
claims involving noneconomic damages. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter B, Chapter 541, Insurance Code, is |
|
|
amended by adding Section 541.0601 to read as follows: |
|
|
Sec. 541.0601. UNFAIR SETTLEMENT PRACTICES IN RELATION TO |
|
|
CERTAIN DAMAGES. (a) In this section: |
|
|
(1) "Artificial intelligence application" means a |
|
|
computer application that mimics human thought and cognitive |
|
|
processes to solve complex problems. |
|
|
(2) "Noneconomic damages" means damages awarded for |
|
|
the purpose of compensating a claimant for physical pain and |
|
|
suffering, mental or emotional pain or anguish, loss of consortium, |
|
|
disfigurement, physical impairment, loss of companionship and |
|
|
society, inconvenience, loss of enjoyment of life, injury to |
|
|
reputation, and all other nonpecuniary losses of any kind other |
|
|
than exemplary damages. |
|
|
(b) An insurer may not settle or adjust a claim that is, in |
|
|
whole or part, for compensation for noneconomic damages without a |
|
|
complete review of the claim by an individual who is authorized to |
|
|
evaluate the claim based on the facts of the claim and the |
|
|
individual's judgment. |
|
|
(c) It is an unfair method of competition or an unfair or |
|
|
deceptive act or practice in the business of insurance to evaluate a |
|
|
claim described by Subsection (b) using: |
|
|
(1) an artificial intelligence application or other |
|
|
computer software application without the complete review of the |
|
|
claim by an individual as required by Subsection (b); or |
|
|
(2) any other method without the complete review of |
|
|
the claim by an individual as required by Subsection (b). |
|
|
(d) This section applies to a claim made by an insured, |
|
|
beneficiary, or third party asserting a claim against an insured |
|
|
covered under a liability insurance policy. |
|
|
(e) The third party under Subsection (d) may bring an action |
|
|
for damages under Section 541.151 for conduct prohibited by this |
|
|
section. |
|
|
SECTION 2. This Act applies only to an insurance policy that |
|
|
is delivered, issued for delivery, or renewed on or after the |
|
|
effective date of this Act. A policy delivered, issued for |
|
|
delivery, or renewed before the effective date of this Act is |
|
|
governed by the law as it existed immediately before the effective |
|
|
date of this Act, and that law is continued in effect for that |
|
|
purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2011. |