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A BILL TO BE ENTITLED
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AN ACT
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relating to the award of damages in certain civil actions against |
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certain entities regulated under the Insurance Code. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 5, Insurance Code, is amended by adding |
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Subtitle H to read as follows: |
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SUBTITLE H. CIVIL ACTIONS AGAINST REGULATED ENTITIES |
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CHAPTER 761. DAMAGES IN CERTAIN CIVIL ACTIONS |
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Sec. 761.001. APPLICABILITY OF CHAPTER. This chapter |
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applies to each entity regulated by the commissioner, including an |
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entity listed in Section 802.051. |
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Sec. 761.002. DAMAGES IN CERTAIN CIVIL ACTIONS. In |
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addition to any other damages, including exemplary damages, costs, |
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and fees awarded, a court shall award to a claimant who prevails in |
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a civil action against an entity described by Section 761.001 |
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arising from a claim for coverage or benefits under an insurance |
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policy or contract or health benefit plan that is written by the |
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entity exemplary damages in an amount equal to the total amount of |
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premiums, contributions, or other consideration paid by the |
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claimant under the policy, contract, or plan in the five years |
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preceding the date of judgment. |
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SECTION 2. The change in law made by this Act applies only |
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to a cause of action that accrues on or after the effective date of |
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this Act. A cause of action that accrued before the effective date |
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of this Act is governed by the law applicable to the cause of action |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |