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A BILL TO BE ENTITLED
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AN ACT
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relating to attorney's fees and interest rates that may be awarded |
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in connection with certain property insurance claims. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 10, Insurance Code, is amended |
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by adding Chapter 1808 to read as follows: |
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CHAPTER 1808. CLAIMS FOR PROPERTY LOSSES |
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Sec. 1808.001. DEFINITION. In this chapter, "claim for |
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property losses" means a request for payment under an insurance |
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policy for damage to or loss of real property or tangible personal |
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property alleged to be covered by the policy. |
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Sec. 1808.002. APPLICABILITY OF CHAPTER. (a) Except as |
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provided by Subsection (b), this chapter applies to any claim under |
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or related to an insurance policy that provides insurance coverage |
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against damage to or loss of real property or tangible personal |
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property, including a policy issued by an insurance company, |
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reciprocal or interinsurance exchange, mutual insurance company, |
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capital stock insurance company, county mutual insurance company, |
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Lloyd's plan, or other legal entity authorized to write property |
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insurance in this state. |
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(b) This chapter does not apply to a claim under a policy |
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issued by: |
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(1) the Texas Windstorm Insurance Association; |
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(2) the FAIR Plan Association; or |
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(3) the Texas Automobile Insurance Plan Association. |
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Sec. 1808.003. ATTORNEY'S FEES. An insured that brings an |
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action against an insurer pertaining to a claim for property losses |
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may not recover attorney's fees in an amount that is greater than 40 |
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percent of the amount by which the property loss determined to be |
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owed under the policy exceeds any amount of loss the insurer has |
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already paid for the claim. |
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Sec. 1808.004. LIABILITY FOR VIOLATION OF SUBCHAPTER B, |
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CHAPTER 542. Interest awarded to an insured under Section 542.060 |
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in connection with a claim for property losses must be computed |
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using the postjudgment interest rate determined under Section |
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304.003, Finance Code, and is limited to that amount. |
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SECTION 2. Chapter 1808, Insurance Code, as added by this |
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Act, applies only to a claim under or related to an insurance policy |
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delivered, issued for delivery, or renewed on or after January 1, |
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2014. A claim under or related to an insurance policy delivered, |
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issued for delivery, or renewed before January 1, 2014, is governed |
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by the law applicable to the claim immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |