Bill Text: TX HB321 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to certain unfair practices in the settlement of insurance claims involving noneconomic damages.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2011-04-19 - Left pending in committee [HB321 Detail]

Download: Texas-2011-HB321-Introduced.html

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82R1978 PMO-D
By: Alonzo H.B. No. 321

A BILL TO BE ENTITLED
AN ACT
relating to certain unfair practices in the settlement of insurance
claims involving noneconomic damages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 541, Insurance Code, is
amended by adding Section 541.0601 to read as follows:
Sec. 541.0601. UNFAIR SETTLEMENT PRACTICES IN RELATION TO
CERTAIN DAMAGES. (a) In this section:
(1) "Artificial intelligence application" means a
computer application that mimics human thought and cognitive
processes to solve complex problems.
(2) "Noneconomic damages" means damages awarded for
the purpose of compensating a claimant for physical pain and
suffering, mental or emotional pain or anguish, loss of consortium,
disfigurement, physical impairment, loss of companionship and
society, inconvenience, loss of enjoyment of life, injury to
reputation, and all other nonpecuniary losses of any kind other
than exemplary damages.
(b) An insurer may not settle or adjust a claim that is, in
whole or part, for compensation for noneconomic damages without a
complete review of the claim by an individual who is authorized to
evaluate the claim based on the facts of the claim and the
individual's judgment.
(c) It is an unfair method of competition or an unfair or
deceptive act or practice in the business of insurance to evaluate a
claim described by Subsection (b) using:
(1) an artificial intelligence application or other
computer software application without the complete review of the
claim by an individual as required by Subsection (b); or
(2) any other method without the complete review of
the claim by an individual as required by Subsection (b).
(d) This section applies to a claim made by an insured,
beneficiary, or third party asserting a claim against an insured
covered under a liability insurance policy.
(e) The third party under Subsection (d) may bring an action
for damages under Section 541.151 for conduct prohibited by this
section.
SECTION 2. This Act applies only to an insurance policy that
is delivered, issued for delivery, or renewed on or after the
effective date of this Act. A policy delivered, issued for
delivery, or renewed before the effective date of this Act 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, 2011.