Bill Text: TX HB3062 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the payment of third-party claims under commercial and personal automobile insurance policies in this state.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-18 - Referred to Insurance [HB3062 Detail]
Download: Texas-2011-HB3062-Introduced.html
| 82R9875 KCR-F | ||
| By: Smithee | H.B. No. 3062 | |
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| relating to the payment of third-party claims under commercial and | ||
| personal automobile insurance policies in this state. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 542, Insurance Code, is amended by | ||
| adding Subchapter H to read as follows: | ||
| SUBCHAPTER H. PROMPT PAYMENT OF THIRD-PARTY LIABILITY CLAIMS | ||
| Sec. 542.401. DEFINITIONS. In this subchapter: | ||
| (1) "Third-party claim" means a claim for bodily | ||
| injury or property damage that is incurred by a person other than | ||
| the insured and is payable under the liability portion of a | ||
| commercial or personal automobile insurance policy or contract. | ||
| (2) "Third-party claimant" means a person who files a | ||
| third-party claim. | ||
| Sec. 542.402. APPLICABILITY OF SUBCHAPTER. This subchapter | ||
| applies to any insurer authorized to write commercial or personal | ||
| automobile liability insurance, or to otherwise provide automobile | ||
| liability insurance in this state, including: | ||
| (1) a stock fire or casualty insurance company; | ||
| (2) a mutual fire or casualty insurance company; | ||
| (3) a Mexican casualty insurance company; | ||
| (4) a Lloyd's plan; | ||
| (5) a reciprocal or interinsurance exchange; | ||
| (6) a county mutual insurance company; | ||
| (7) an eligible surplus lines insurer; and | ||
| (8) a guaranty association operating under Chapter | ||
| 462. | ||
| Sec. 542.403. EVALUATION OF THIRD-PARTY CLAIM. In | ||
| evaluating a third-party claim, an insurer shall: | ||
| (1) obtain and review reasonably available relevant | ||
| information, including reports, statements, visual and audio | ||
| recordings, and other data or analysis prepared or recorded by the | ||
| insured or another person at the time of or after the accident that | ||
| gave rise to the claim; and | ||
| (2) make and document reasonable, diligent efforts to | ||
| communicate with the person insured under the policy under which | ||
| the third-party claim is filed. | ||
| Sec. 542.404. PAYMENT OF CLAIM. (a) Except as provided by | ||
| Subsection (b) or (c), an insurer shall pay a third-party claim not | ||
| later than the fifth business day after the date the insurer | ||
| notifies a third-party claimant that the insurer will pay all or | ||
| part of the claimant's third-party claim. | ||
| (b) Except as provided by Subsection (c), if payment of all | ||
| or part of a third-party claim is conditioned on the performance of | ||
| an act by the third-party claimant, the insurer shall pay the | ||
| third-party claim not later than the fifth business day after the | ||
| date the third-party claimant performs the required act. | ||
| (c) An eligible surplus lines insurer shall pay a | ||
| third-party claim not later than the 20th business day after, as | ||
| applicable, the date: | ||
| (1) the insurer notifies the third-party claimant that | ||
| the insurer will pay all or part of the claimant's third-party | ||
| claim; or | ||
| (2) the third-party claimant performs a required act, | ||
| if payment of all or part of the third-party claim is conditioned on | ||
| the performance of an act by the third-party claimant. | ||
| Sec. 542.405. NO CAUSE OF ACTION CREATED. (a) This | ||
| subchapter does not create a private cause of action. | ||
| (b) This subchapter does not establish or create: | ||
| (1) rights of the third-party claimant as a | ||
| beneficiary under a commercial or personal automobile insurance | ||
| policy or contract; or | ||
| (2) obligations or duties on behalf of an insured or | ||
| insurer as a result of the third-party claim or to the third-party | ||
| claimant, other than those duties described by Sections 542.403 and | ||
| 542.404. | ||
| Sec. 542.406. RULES. The commissioner may adopt rules | ||
| necessary to implement this subchapter. | ||
| SECTION 2. Subchapter H, Chapter 542, Insurance Code, as | ||
| added by this Act, applies only to a claim filed under a commercial | ||
| or personal automobile insurance policy on or after the effective | ||
| date of this Act. A claim filed under a commercial or personal | ||
| automobile insurance policy before the effective date of this Act | ||
| is governed by the law in effect on the date the claim was filed, and | ||
| the former law is continued in effect for that purpose. | ||
| SECTION 3. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2011. | ||
