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A BILL TO BE ENTITLED
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AN ACT
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relating to a claim filing period and contractual limitations |
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period in certain property insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is |
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amended by adding Section 2301.011 to read as follows: |
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Sec. 2301.011. CONTRACTUAL LIMITATIONS PERIOD AND CLAIM |
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FILING PERIOD IN CERTAIN RESIDENTIAL OR COMMERCIAL PROPERTY |
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INSURANCE FORMS. (a) A policy form or printed endorsement form for |
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residential or commercial property insurance that is filed by an |
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insurer or adopted by the department under this subchapter may |
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provide for a contractual limitations period for filing suit on a |
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first-party claim under the policy. The contractual limitations |
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period may not end before the earlier of: |
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(1) two years from the date the insurer wholly or |
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partly denies the claim; or |
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(2) three years from the date of the loss that is the |
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subject of the claim. |
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(b) A policy or endorsement described by Subsection (a) may |
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contain a provision requiring that a claim be filed with the insurer |
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not later than one year after the date of the loss that is the |
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subject of the claim. |
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(c) A contractual provision contrary to Subsection (a) is |
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void. This subsection does not affect the validity of other |
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provisions of a contract that may be given effect without the voided |
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provision to the extent those provisions are severable. |
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SECTION 2. Section 16.070, Civil Practice and Remedies |
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Code, is amended by amending Subsection (a) and adding Subsection |
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(c) to read as follows: |
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(a) Except as provided by Subsections [Subsection] (b) and |
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(c), a person may not enter a stipulation, contract, or agreement |
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that purports to limit the time in which to bring suit on the |
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stipulation, contract, or agreement to a period shorter than two |
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years. A stipulation, contract, or agreement that establishes a |
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limitations period that is shorter than two years is void in this |
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state. |
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(c) This section does not apply to a residential or |
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commercial property insurance policy that complies with Section |
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2301.011, Insurance Code. |
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SECTION 3. Section 2301.011, Insurance Code, as added by |
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this Act, applies only to an insurance policy that is delivered, |
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issued for delivery, or renewed on or after January 1, 2014. A |
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policy delivered, issued for delivery, or renewed before January 1, |
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2014, is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 4. This Act takes effect September 1, 2013. |