Bill Text: TX HB1793 | 2021-2022 | 87th Legislature | Engrossed
Bill Title: Relating to prohibiting oral releases for automobile insurance claims.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2021-05-17 - Referred to Business & Commerce [HB1793 Detail]
Download: Texas-2021-HB1793-Engrossed.html
| 87R20268 SCL-F | ||
| By: Johnson of Dallas, Sanford | H.B. No. 1793 | |
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| 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. | ||
