87R20268 SCL-F
 
  By: Johnson of Dallas H.B. No. 1793
 
  Substitute the following for H.B. No. 1793:
 
  By:  Oliverson C.S.H.B. No. 1793
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to prohibiting oral releases for automobile insurance
  claims.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 10, Insurance Code, is amended
  by adding Chapter 1955 to read as follows:
  CHAPTER 1955. ORAL RELEASES FOR AUTOMOBILE INSURANCE CLAIMS
         Sec. 1955.001.  DEFINITIONS. In this chapter:
               (1)  "Claimant" means an individual who has a claim for
  property damage or an injury against another individual or an
  entity.
               (2)  "Injury" means a bodily or psychological injury.
               (3)  "Oral release" means an oral contract under which
  a claimant releases, wholly or partly, one or more of the claimant's
  claims arising out of property damage or an injury for which an
  insurer may be liable under an automobile insurance policy in
  exchange for money or other consideration paid.
         Sec. 1955.002.  APPLICABILITY OF CHAPTER. This chapter
  applies to an insurer writing personal or commercial automobile
  insurance in this state, including an insurance company,
  corporation, reciprocal or interinsurance exchange, mutual
  insurance company, county mutual insurance company, association,
  Lloyd's plan, or other insurer.
         Sec. 1955.003.  ORAL RELEASE OF CLAIMS PROHIBITED. A
  claimant and an insurer or another individual or entity may not
  enter into an oral release for claims arising out of property damage
  or an injury for which an insurer may be liable under an automobile
  insurance policy. A release made in exchange for money or other
  consideration paid for the claimant's claim arising out of property
  damage or an injury for which an insurer may be liable under an
  automobile insurance policy is not enforceable unless the contract
  is in writing.
         SECTION 2.  The changes in law made by this Act apply only to
  a contract entered into on or after January 1, 2022. A contract
  entered into before January 1, 2022, is governed by the law as it
  existed immediately before the effective date of this Act, and that
  law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2021.