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A BILL TO BE ENTITLED
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AN ACT
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relating to the protection of motorists, passengers, and |
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pedestrians. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1951, Insurance Code, is amended by |
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adding Subchapter A before Section 1951.001 to read as follows: |
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SUBCHAPTER A. GENERAL PROVISIONS |
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SECTION 2. Chapter 1951, Insurance Code, is amended by |
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adding Subchapter B after Section 1951.004 to read as follows: |
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SUBCHAPTER B. PROTECTION OF INJURED PERSONS |
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Sec. 1951.005. PURPOSE. The purpose of this subchapter is |
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to protect those injured by motorists from predatory practices |
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engaged in by personal and commercial automobile insurers that seek |
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to induce injured motorists into settling and releasing their legal |
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claims for an amount that is insufficient to compensate their |
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losses at a time when these losses are not known with any certainty. |
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These practices result in costs both to the injured person and |
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medical providers whose care and services may go uncompensated as a |
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result of these predatory insurance practices. |
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Sec. 1951.006. APPLICABILITY OF SUBCHAPTER. This |
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subchapter applies to all insurers writing personal or commercial |
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automobile insurance in this state, including an insurance company, |
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corporation, reciprocal or interinsurance exchange, mutual |
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insurance company, association, Lloyd's plan, or other insurer. |
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Sec. 1951.007. DEFINITIONS. In this subchapter: |
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(1) "Claimant" means any individual or group of |
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individuals who has a claim for injuries against any other |
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individual, group of individuals, entity, or organization. |
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(2) "Release" means any contract or contractual |
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obligation, written or oral, in which it is agreed that a sum of |
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money, or other consideration, is paid by any releasee, to a |
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claimant, in exchange for claimant releasing any or part of their |
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claims for any injuries arising out of any occurrence. |
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(3) "Injuries" means any bodily or psychological |
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injury. |
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(4) "Occurrence" means any accident or intentional |
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harm caused by the acts or omissions of any individual or entity. |
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(5) "Releasee" means any individual or group of |
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individuals, entity or organization, or their insurer, being |
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released from any claims made by a claimant. |
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Sec. 1951.008. VOIDABLE RELEASE OF CLAIMS. (a) A release, |
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signed by the claimant, or otherwise orally agreed to, releasing |
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all or part of any claims for injuries, arising out of any |
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occurrence, is voidable by the claimant if it is signed or orally |
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agreed to within 45 days of an occurrence giving rise to the claim, |
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and the claimant is not represented by an attorney. |
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(b) In order to void the release, the claimant must give the |
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releasee written notice, within one year of the date of signing or |
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orally agreeing to the release, that the claimant is voiding the |
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release. |
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(c) Any consideration paid to the claimant, in return for a |
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release that is voidable under this statute, shall be credited |
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against any future claim made against the releasee. |
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SECTION 3. Section 1952.056, Insurance Code, is amended to |
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read as follows: |
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Sec. 1952.056. REQUIRED PROVISIONS |
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: COVERAGE FOR CERTAIN |
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SPOUSES AND FAMILY MEMBERS. A personal automobile insurance policy |
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or any similar policy form adopted or approved by the commissioner |
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under Article 5.06 or filed under Subchapter B, Chapter 2301, that |
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covers liability arising out of ownership, maintenance, or use of a |
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motor vehicle of a spouse who is otherwise insured by the policy |
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must contain a provision to continue coverage for the spouse during |
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a period of separation in contemplation of divorce and must not |
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contain any provision which would deny or limit coverage to any |
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family member of the insured, including any person who is related by |
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blood, adoption, or marriage and who resides in the named insured's |
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household. |
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SECTION 4. Subchapter B of Chapter 1952, Insurance Code, is |
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amended by adding Section 1952.060 to read as follows: |
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Sec. 1952.060. CONDUCT EXCLUSION. All automobile owner's |
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insurance policies issued in this state must provide the coverage |
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specified in Section 601.076, Transportation Code. The only |
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allowable conduct exclusion from the coverage provided in these |
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policies is for results intended by the insured. |
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SECTION 5. Section 1952.106, Insurance Code, is amended to |
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read as follows: |
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Sec. 1952.106. RECOVERY UNDER UNINSURED AND UNDERINSURED |
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MOTORIST COVERAGE. Uninsured and underinsured motorist coverage |
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must provide for payment to the insured of all amounts that the |
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insured is legally entitled to recover as damages from owners or |
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operators of uninsured or underinsured motor vehicles because of |
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bodily injury or property damage, not to exceed the limit specified |
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in the insurance policy, and reduced by the amount recovered or |
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recoverable from the insurer of the underinsured motor vehicle. |
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This benefit shall be due the insured once the legal liability of |
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the uninsured or underinsured motorist and the amount of the |
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insured's damages are reasonably apparent and shall not be |
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dependent on a judicial determination of the same. |
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SECTION 6. The change in law made by this Act applies only |
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to an insurance policy that is delivered, issued for delivery, or |
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renewed on or after January 1, 2018. A policy delivered, issued for |
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delivery, or renewed before January 1, 2018, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2017. |