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A BILL TO BE ENTITLED
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AN ACT
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relating to disclosures by liability insurers and policyholders to |
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third-party claimants; providing an administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 542, Insurance Code, is amended by |
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adding Subchapter C-2 to read as follows: |
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SUBCHAPTER C-2. DISCLOSURE OF POLICY INFORMATION TO THIRD-PARTY |
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CLAIMANTS |
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Sec. 542.141. DISCLOSURE BY INSURER. (a) This section |
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applies to an insurer that receives: |
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(1) a written request for policy information from a |
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claimant asserting a claim that is or might be covered under |
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liability insurance coverage provided by the insurer to a |
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policyholder against whom the claim is asserted; or |
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(2) a claimant's request for policy information |
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forwarded under Section 542.142. |
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(b) An insurer described by Subsection (a) shall provide to |
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the claimant: |
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(1) a sworn statement of an officer or claims manager |
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of the insurer that contains the following information for each |
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policy known by the insurer that provides or may provide relevant |
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coverage, including excess or umbrella coverage: |
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(A) the name of the insurer; |
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(B) the name of each insured; |
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(C) the limits of liability coverage; and |
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(D) any policy or coverage defense the insurer |
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reasonably believes is available to the insurer at the time the |
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sworn statement is made; and |
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(2) a copy of each policy described by Subdivision (1) |
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under which the insurer provides coverage. |
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(c) An insurer that fails to comply with this section is |
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subject to an administrative penalty under Chapter 84 of not more |
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than $500. |
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Sec. 542.142. DISCLOSURE BY POLICYHOLDER. (a) This |
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section applies to a policyholder that receives a written request |
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for policy information from a claimant asserting a claim against |
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the policyholder that the policyholder believes is or may be |
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covered under liability insurance coverage provided to the |
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policyholder. |
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(b) A policyholder described by Subsection (a) shall |
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promptly: |
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(1) disclose to the claimant the name of and type of |
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coverage provided by each insurer that provides or may provide |
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liability coverage for the claim; and |
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(2) forward the claimant's request to each insurer |
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included in the disclosure under Subdivision (1). |
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Sec. 542.143. INSURER'S DEADLINE FOR PROVIDING REQUESTED |
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INFORMATION. An insurer shall provide the information requested |
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under Section 542.141 or 542.142 to the claimant not later than the |
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30th day after the date the insurer receives the request from the |
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claimant or policyholder. |
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Sec. 542.144. AMENDMENT OF STATEMENT. (a) An insurer that |
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is aware of a material change that affects a fact stated in the |
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insurer's sworn statement under Section 542.141 or a policyholder |
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that is aware of a material change that affects a fact stated in the |
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policyholder's disclosure under Section 542.142 shall provide to |
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the claimant a written amended statement or disclosure, as |
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applicable, stating the material change. |
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(b) An amended statement provided by an insurer under |
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Subsection (a) must be sworn and include a copy of each insurance |
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policy relevant to the change. |
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(c) The insurer or the policyholder must provide the amended |
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statement or disclosure described by Subsection (a) not later than |
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the second business day after the date the insurer or policyholder |
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is aware of the material change. |
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SECTION 2. This Act takes effect September 1, 2021. |