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A BILL TO BE ENTITLED
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AN ACT
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relating to underinsured motorist coverage in personal automobile |
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insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 1952.103 and 1952.106, Insurance Code, |
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are amended to read as follows: |
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Sec. 1952.103. UNDERINSURED MOTOR VEHICLE. For purposes of |
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the coverage required by this subchapter, "underinsured motor |
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vehicle" means an insured motor vehicle to which a liability |
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insurance policy applies if that policy's limit of liability: |
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(1) is insufficient to pay the full amount the person |
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covered by the underinsured motorist coverage is legally entitled |
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to recover as damages; or |
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(2) has been reduced by the payment of claims to an |
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amount that is insufficient to pay the full amount the person |
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covered by the underinsured motorist coverage is legally entitled |
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to recover as damages [on which there is collectible liability
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insurance coverage with limits of liability for the owner or
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operator that were originally lower than, or have been reduced by
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payment of claims arising from the same accident to, an amount less
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than the limit of liability stated in the underinsured coverage of
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the insured's policy]. |
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Sec. 1952.106. RECOVERY UNDER UNDERINSURED MOTORIST |
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COVERAGE. Underinsured motorist coverage must provide for payment, |
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up to the underinsured motorist coverage limit, to the insured of |
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all amounts that the insured is legally entitled to recover as |
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damages from owners or operators of underinsured motor vehicles |
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because of bodily injury or property damage. Those damages may be[,
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not to exceed the limit specified in the insurance policy, and] |
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reduced by the amount recovered or recoverable from the insurer of |
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the underinsured motor vehicle. |
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SECTION 2. 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, 2015. |