Bill Text: TX HB1935 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the award of damages for certain deceptive, unfair, and prohibited practices by an insurer.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-07 - Referred to Insurance [HB1935 Detail]
Download: Texas-2011-HB1935-Introduced.html
82R7441 TJS-D | ||
By: Gutierrez | H.B. No. 1935 |
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relating to the award of damages for certain deceptive, unfair, and | ||
prohibited practices by an insurer. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 541.152(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) On a finding by the trier of fact that the defendant | ||
knowingly committed the act complained of, the trier of fact shall | ||
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amount of actual damages. | ||
SECTION 2. Section 542.060(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) If an insurer that is liable for a claim under an | ||
insurance policy is not in compliance with this subchapter, the | ||
insurer is liable to pay the holder of the policy or the beneficiary | ||
making the claim under the policy, in addition to the amount of the | ||
claim, [ |
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percent of the amount of the unpaid balance of the claim per [ |
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year as damages, together with reasonable attorney's fees. Damages | ||
under this section begin to accrue on the date on which the insurer | ||
becomes liable for failure to comply with this subchapter as | ||
determined under Section 542.058 and continue to accrue until the | ||
date on which the unpaid balance of the claim is paid. | ||
SECTION 3. (a) The change in law made by Section 541.152, | ||
Insurance Code, as amended by this Act, applies only to an action | ||
for damages arising from an act or practice that occurs on or after | ||
the effective date of this Act. An action for damages for an act or | ||
practice that occurs before the effective date of this Act is | ||
governed by the law in effect immediately before that date, and that | ||
law is continued in effect for that purpose. | ||
(b) The change in law made by Section 542.060, Insurance | ||
Code, as amended by this Act, applies only to liability for a | ||
violation of Subchapter B, Chapter 542, Insurance Code, as amended | ||
by this Act, that occurs on or after the effective date of this Act. | ||
Liability for a violation of Subchapter B, Chapter 542, Insurance | ||
Code, that occurs before the effective date of this Act is governed | ||
by the law in effect immediately before that date, and that law is | ||
continued in effect for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2011. |