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A BILL TO BE ENTITLED
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AN ACT
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relating to deceptive, unfair, or prohibited practices by an |
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insurer. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 542.003(b), Insurance Code, is amended |
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to read as follows: |
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(b) Any of the following acts by an insurer constitutes |
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unfair claim settlement practices: |
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(1) knowingly misrepresenting to a claimant pertinent |
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facts or policy provisions relating to coverage at issue; |
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(2) failing to acknowledge with reasonable promptness |
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pertinent communications relating to a claim arising under the |
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insurer's policy; |
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(3) failing to adopt and implement reasonable |
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standards for the prompt investigation of claims arising under the |
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insurer's policies; |
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(4) not attempting in good faith to effect a prompt, |
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fair, and equitable settlement of a claim submitted in which |
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liability has become reasonably clear; |
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(5) compelling a policyholder to institute a suit to |
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recover an amount due under a policy by offering substantially less |
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than the amount ultimately recovered in a suit brought by the |
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policyholder; |
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(6) compelling a policyholder to retain a public |
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insurance adjuster to recover an amount due under a policy by |
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offering substantially less than the amount ultimately recovered in |
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a settlement with the policyholder; |
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(7) failing to maintain the information required by |
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Section 542.005; or |
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(8) [(7)] committing another act the commissioner |
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determines by rule constitutes an unfair claim settlement practice. |
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SECTION 2. Section 4102.104, Insurance Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) Notwithstanding Subsection (b), an insurer shall pay |
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a commission of a license holder for services provided to an insured |
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as a result of the insurer violating Chapter 541 or Section |
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542.003(b). The payment required by this subsection is in addition |
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to any other payment required under other law. |
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SECTION 3. Section 542.003, Insurance Code, as amended by |
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this Act, applies only to an offer made on or after the effective |
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date of this Act. An offer made before the effective date of this |
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Act is governed by the law as it existed immediately before the |
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effective date of this Act, and that law continues in effect for |
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that purpose. |
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SECTION 4. Section 4102.104(b-1), Insurance Code, as added |
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by this Act, applies only to services provided under a contract |
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between a public insurance adjuster and an insured entered into on |
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or after the effective date of this Act. |
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SECTION 5. This Act takes effect September 1, 2023. |