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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment of third-party claims under commercial and |
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personal automobile insurance policies in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 542, Insurance Code, is amended by |
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adding Subchapter H to read as follows: |
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SUBCHAPTER H. PROMPT PAYMENT OF THIRD-PARTY LIABILITY CLAIMS |
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Sec. 542.401. DEFINITIONS. In this subchapter: |
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(1) "Third-party claim" means a claim for bodily |
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injury or property damage that is incurred by a person other than |
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the insured and is payable under the liability portion of a |
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commercial or personal automobile insurance policy or contract. |
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(2) "Third-party claimant" means a person who files a |
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third-party claim. |
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Sec. 542.402. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to any insurer authorized to write commercial or personal |
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automobile liability insurance, or to otherwise provide automobile |
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liability insurance in this state, including: |
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(1) a stock fire or casualty insurance company; |
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(2) a mutual fire or casualty insurance company; |
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(3) a Mexican casualty insurance company; |
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(4) a Lloyd's plan; |
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(5) a reciprocal or interinsurance exchange; |
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(6) a county mutual insurance company; |
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(7) an eligible surplus lines insurer; and |
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(8) a guaranty association operating under Chapter |
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462. |
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Sec. 542.403. EVALUATION OF THIRD-PARTY CLAIM. In |
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evaluating a third-party claim, an insurer shall: |
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(1) obtain and review reasonably available relevant |
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information, including reports, statements, visual and audio |
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recordings, and other data or analysis prepared or recorded by the |
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insured or another person at the time of or after the accident that |
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gave rise to the claim; and |
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(2) make and document reasonable, diligent efforts to |
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communicate with the person insured under the policy under which |
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the third-party claim is filed. |
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Sec. 542.404. PAYMENT OF CLAIM. (a) Except as provided by |
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Subsection (b) or (c), an insurer shall pay a third-party claim not |
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later than the 10th business day after the date the insurer and the |
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third-party claimant agree on the amount of the claimant's |
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third-party claim that the insurer will pay. |
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(b) Except as provided by Subsection (c), if payment of all |
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or part of a third-party claim is conditioned on the performance of |
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an act by the third-party claimant, the insurer shall pay the |
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third-party claim not later than the 10th business day after the |
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date the third-party claimant performs the required act. |
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(c) An eligible surplus lines insurer shall pay a |
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third-party claim not later than the 20th business day after, as |
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applicable, the date: |
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(1) the insurer and the third-party claimant agree on |
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the amount of the claimant's third-party claim that the insurer |
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will pay; or |
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(2) the third-party claimant performs a required act, |
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if payment of all or part of the third-party claim is conditioned on |
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the performance of an act by the third-party claimant. |
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Sec. 542.405. NO CAUSE OF ACTION CREATED. (a) This |
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subchapter does not create a private cause of action. |
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(b) This subchapter does not establish or create: |
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(1) rights of the third-party claimant as a |
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beneficiary under a commercial or personal automobile insurance |
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policy or contract; or |
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(2) obligations or duties on behalf of an insured or |
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insurer as a result of the third-party claim or to the third-party |
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claimant, other than those duties described by Sections 542.403 and |
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542.404. |
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Sec. 542.406. RULES. The commissioner may adopt rules |
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necessary to implement this subchapter. |
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SECTION 2. Subchapter H, Chapter 542, Insurance Code, as |
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added by this Act, applies only to a claim filed under a commercial |
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or personal automobile insurance policy on or after the effective |
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date of this Act. A claim filed under a commercial or personal |
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automobile insurance policy before the effective date of this Act |
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is governed by the law in effect on the date the claim was filed, and |
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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, 2011. |