Bill Text: TX HB3787 | 2015-2016 | 84th Legislature | Engrossed
Bill Title: Relating to a claim filing period and contractual limitations period in certain property insurance policies.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2015-05-25 - Left pending in committee [HB3787 Detail]
Download: Texas-2015-HB3787-Engrossed.html
By: Bonnen of Galveston | H.B. No. 3787 |
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relati | ||
ng to a claim filing period and contractual limitations | ||
period in certain property insurance policies. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is | ||
amended by adding Section 2301.011 to read as follows: | ||
Sec. 2301.011. CONTRACTUAL LIMITATIONS PERIOD AND CLAIM | ||
FILING PERIOD IN CERTAIN RESIDENTIAL OR COMMERCIAL PROPERTY | ||
INSURANCE FORMS. (a) Notwithstanding Section 16.070, Civil | ||
Practice and Remedies Code, a policy form or printed endorsement | ||
form for residential or commercial property insurance that is filed | ||
by an insurer or adopted by the department under this subchapter may | ||
provide for a contractual limitations period for filing suit on a | ||
first-party claim under the policy. The contractual limitations | ||
period may not end before the earlier of: | ||
(1) two years from the date the insurer accepts or | ||
rejects the claim if the insurer has notified the insured by | ||
certified mail, return receipt requested, that the insurer has | ||
accepted or rejected the claim and has notified the insured in | ||
writing that the insured must file suit on the claim within two | ||
years of the date the insurer accepted or rejected the claim; or | ||
(2) three years from the date that the insured | ||
discovered or, by the exercise of reasonable diligence, should have | ||
discovered that the insurer accepted or rejected the claim. | ||
(b) A policy or endorsement described by Subsection (a) may | ||
also contain a provision requiring that a claim be filed with the | ||
insurer not later than two years after the date that the insured | ||
discovered or, by the exercise of reasonable diligence, should have | ||
discovered the loss that is the subject of the claim. | ||
(c) A contractual provision contrary to Subsection (a) is | ||
void. If a contractual provision is voided under this subsection, | ||
the voiding of the provision does not affect the validity of other | ||
provisions of a contract that may be given effect without the voided | ||
provision to the extent those provisions are severable. | ||
(d) An insurer using a policy form or endorsement form in | ||
this state that includes a provision described by Subsection (a) or | ||
(b) shall, at the time the policy or endorsement is issued or | ||
renewed, disclose in writing to an applicant or insured the | ||
contractual limitations or claims filing period, as applicable, in | ||
the policy or endorsement. | ||
SECTION 2. Section 2301.011, Insurance Code, as added by | ||
this Act, applies only to an insurance policy that is delivered, | ||
issued for delivery, or renewed on or after January 1, 2016. A | ||
policy delivered, issued for delivery, or renewed before January 1, | ||
2016, 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, 2015. |