Bill Text: TX HB3394 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to a direct action against an insurer and insured by third parties and required provisions of a liability insurance policy.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-19 - Referred to Judiciary & Civil Jurisprudence [HB3394 Detail]
Download: Texas-2015-HB3394-Introduced.html
84R12090 SCL-F | ||
By: Alonzo | H.B. No. 3394 |
|
||
|
||
relating to a direct action against an insurer and insured by third | ||
parties and required provisions of a liability insurance policy. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 4, Civil Practice and Remedies Code, is | ||
amended by adding Chapter 100B to read as follows: | ||
CHAPTER 100B. THIRD-PARTY LIABILITY OF INSURERS AND INSUREDS | ||
Sec. 100B.001. DEFINITIONS. In this chapter: | ||
(1) "Insured" means an individual who is issued, is a | ||
party to, or is a beneficiary under a liability insurance policy. | ||
(2) "Insurer" means an insurance company or other | ||
entity admitted to engage in business and authorized to write | ||
liability insurance in this state, including a county mutual | ||
insurance company, a Lloyd's plan, and a reciprocal or | ||
interinsurance exchange. | ||
Sec. 100B.002. DIRECT ACTION AGAINST INSURERS AND INSUREDS. | ||
(a) Except as provided by Subsection (c), a third party who is | ||
injured by an insured or is a survivor of an individual who was | ||
injured by the insured may bring an action under this chapter | ||
against the insured and the insured's insurer if the insurer is | ||
liable under the terms of the insured's policy to indemnify the | ||
insured for damages for the injury. | ||
(b) The third party may bring an action under this chapter | ||
only in the county in which the injury occurred or in a county in | ||
which an action may be brought against the insured or insurer under | ||
Chapter 15. | ||
(c) A third party may bring an action under this chapter | ||
against the insurer only if: | ||
(1) the insured has received a discharge in bankruptcy | ||
by a court of competent jurisdiction that is applicable to the third | ||
party's claim or that evidences that the insured is unable to pay | ||
the claim; | ||
(2) at the time the third party brings the action, | ||
bankruptcy proceedings are pending for the insured in a court of | ||
competent jurisdiction; | ||
(3) the insured is insolvent; | ||
(4) service of citation or other process cannot be | ||
made on the insured; | ||
(5) the third party is a child, parent, or spouse of | ||
the insured; | ||
(6) the third party is seeking to recover under the | ||
insured's uninsured or underinsured motorist coverage; or | ||
(7) the insured is deceased. | ||
(d) A third party may bring an action under this chapter | ||
regardless of whether the insured's policy prohibits an action | ||
under this chapter or is written or delivered outside of this state. | ||
Sec. 100B.003. EFFECT ON INSURANCE POLICIES. (a) This | ||
chapter may not be construed to affect the provisions of an | ||
insurance policy if the provisions are not in violation of the laws | ||
of this state. | ||
(b) An action brought under this chapter is subject to the | ||
lawful conditions of the applicable insurance policy and the | ||
defenses which an insurer may raise. | ||
SECTION 2. Subchapter A, Chapter 2301, Insurance Code, is | ||
amended by adding Section 2301.011 to read as follows: | ||
Sec. 2301.011. REQUIRED POLICY PROVISIONS. (a) An insurer | ||
may not deliver or issue for delivery in this state a form for use in | ||
writing liability insurance described by Section 2301.003 unless | ||
the form contains the provisions described by this section. | ||
(b) A form must contain a provision providing that the | ||
insolvency or bankruptcy of the insured does not release the | ||
insurer from the payment of damages for an injury or loss by a third | ||
party for which the insurer is liable under the policy. | ||
(c) A form must contain a provision providing that a | ||
judgment against an insured from which a third party cannot collect | ||
any damages is prima facie evidence of the insured's insolvency and | ||
the third party may bring an action against the insurer within the | ||
terms and limits of the policy against the insurer under Chapter | ||
100B, Civil Practice and Remedies Code. | ||
(d) A form must contain a provision providing that the | ||
purpose of the policy includes: | ||
(1) providing benefits to all injured third parties | ||
and the third parties' survivors to whom the insured is liable; and | ||
(2) providing protection and coverage to each person | ||
insured under the policy, regardless of whether the person is a | ||
named insured or an additional insured, for any legal liability the | ||
person may incur under the terms and limits of the policy. | ||
SECTION 3. The changes in law made by this Act apply only to | ||
an insurance policy delivered, issued for delivery, or renewed on | ||
or after the effective date of this Act. An insurance policy | ||
delivered, issued for delivery, or renewed before the effective | ||
date of this Act is governed by the law in effect 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, 2015. |