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A BILL TO BE ENTITLED
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AN ACT
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relating to the denial of coverage for a claim filed with the Texas |
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Windstorm Insurance Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.573, Insurance Code, is amended by |
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adding Subsections (d-1) and (e-1) to read as follows: |
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(d-1) If the association does not wholly or partly accept |
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coverage for the claim under Subsection (d), the unaccepted |
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coverage is considered denied. |
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(e-1) In a notice described by Subsection (d)(1) or (2), the |
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association shall include an itemized list of the portions of the |
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claim for which coverage is accepted. Coverage for any portion not |
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included on the itemized list is considered denied and coverage for |
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the claim is considered not to have been accepted in full. |
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SECTION 2. Section 2210.575(a), Insurance Code, is amended |
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to read as follows: |
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(a) If the association denies coverage for a claim in part |
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or in full and the claimant disputes that determination, the |
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claimant, not later than the expiration of the limitations period |
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described by Section 2210.577(a), but after the date the claimant |
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receives the notice described by Section 2210.573(d) |
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[2210.573(d)(2) or (3)], must provide the association with notice |
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that the claimant intends to bring an action against the |
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association concerning the partial or full denial of the claim. |
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SECTION 3. Section 2210.577(a), Insurance Code, is amended |
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to read as follows: |
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(a) Notwithstanding any other law, a claimant who brings an |
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action against the association under Section 2210.575 must bring |
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the action not later than the second anniversary of the date on |
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which the person receives a notice described by Section |
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2210.573(d) [2210.573(d)(2) or (3)]. |
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SECTION 4. The change in law made by this Act applies only |
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to a claim filed on or after the effective date of this Act. A claim |
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filed before the effective date of this Act is governed by the law |
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applicable to the claim immediately before the effective date of |
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this Act, and that law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2019. |