Bill Text: TX HB3063 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to third-party property damage claims under private passenger automobile insurance policies.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-04-19 - Left pending in committee [HB3063 Detail]
Download: Texas-2011-HB3063-Introduced.html
| 82R10270 KCR-D | ||
| By: Smithee | H.B. No. 3063 | |
|
|
||
|
|
||
| relating to third-party property damage claims under private | ||
| passenger automobile insurance policies. | ||
| 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. CERTAIN THIRD-PARTY PROPERTY DAMAGE CLAIMS | ||
| Sec. 542.351. DEFINITION. In this subchapter, "third-party | ||
| property damage claim" means a claim for property damage made | ||
| against a person who is insured for liability for the claim under a | ||
| private passenger automobile insurance policy. | ||
| Sec. 542.352. APPLICABILITY OF SUBCHAPTER. This subchapter | ||
| applies to any insurer that delivers, issues for delivery, or | ||
| renews in this state a private passenger automobile insurance | ||
| policy, including a reciprocal or interinsurance exchange, mutual | ||
| insurance company, association, Lloyd's plan, or other insurer. | ||
| Sec. 542.353. PROMPT SETTLEMENT OF THIRD-PARTY PROPERTY | ||
| DAMAGE CLAIMS. (a) The commissioner by rule shall adopt minimum | ||
| standards to ensure prompt and equitable settlement of a | ||
| third-party property damage claim in circumstances in which: | ||
| (1) the insured's liability for the property damage is | ||
| reasonably clear; and | ||
| (2) the amount of the claim is within the policy | ||
| limits. | ||
| (b) The minimum standards must include: | ||
| (1) reasonable deadlines for an insurer to acknowledge | ||
| and pay a third-party property damage claim; | ||
| (2) required notices and other information that the | ||
| insurer must provide to a third-party property damage claimant or, | ||
| if applicable, the insured; and | ||
| (3) standards governing the items, statements, and | ||
| forms that an insurer may require a third-party property damage | ||
| claimant or insured to submit in relation to the claim. | ||
| Sec. 542.354. COMPLIANCE REQUIRED. An insurer shall comply | ||
| with the minimum standards adopted by the commissioner under | ||
| Section 542.353. | ||
| Sec. 542.355. ARBITRATION OF CLAIMS. (a) A third-party | ||
| property damage claimant may require that an insurer submit a | ||
| dispute concerning the payment of, the amount of, or the denial of a | ||
| third-party property damage claim to binding arbitration in | ||
| accordance with the procedures established under this section. | ||
| (b) A third-party property damage claimant who elects | ||
| binding arbitration under this section: | ||
| (1) waives the right to bring against the insured or | ||
| insurer an action, other than an action to enforce the arbitration | ||
| award, with respect to the claim; and | ||
| (2) agrees to accept payment for the claim within the | ||
| applicable policy limits. | ||
| (c) The commissioner by rule shall adopt a program for | ||
| arbitration of third-party property damage claims. The rules must | ||
| establish: | ||
| (1) procedures for requesting and conducting an | ||
| arbitration under this section; | ||
| (2) procedures for selecting one or more arbitrators | ||
| to conduct the arbitration; | ||
| (3) the qualifications of arbitrators authorized to | ||
| conduct arbitrations under this section; and | ||
| (4) a procedure for payment of the costs of | ||
| arbitration, including payment of arbitrators' fees, the amount of | ||
| the fees, and which party or parties are liable for the payment of | ||
| the fees. | ||
| (d) The department shall maintain and publish a list of | ||
| arbitrators qualified to conduct arbitrations under this section. | ||
| (e) Except to the extent of any conflict with this section | ||
| and the rules adopted under this section, Chapter 171, Civil | ||
| Practice and Remedies Code, applies to an arbitration conducted | ||
| under this section. | ||
| SECTION 2. Subchapter A, Chapter 1952, Insurance Code, is | ||
| amended by adding Section 1952.0565 to read as follows: | ||
| Sec. 1952.0565. REQUIRED PROVISION: ARBITRATION OF | ||
| THIRD-PARTY PROPERTY DAMAGE CLAIMS. An insurer may not deliver or | ||
| issue for delivery in this state a private passenger automobile | ||
| insurance policy that provides liability coverage for damages | ||
| arising out of the ownership, maintenance, or use of a motor vehicle | ||
| unless the policy, or an endorsement to the policy, includes a | ||
| provision that requires the insurer to participate in binding | ||
| arbitration in accordance with Subchapter H, Chapter 542. | ||
| SECTION 3. Subchapter H, Chapter 542, Insurance Code, as | ||
| added by this Act, and Section 1952.0565, Insurance Code, as added | ||
| by this Act, apply only to an insurance policy that is delivered, | ||
| issued for delivery, or renewed on or after January 1, 2012. A | ||
| policy delivered, issued for delivery, or renewed before January 1, | ||
| 2012, 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 4. This Act takes effect September 1, 2011. | ||
