Bill Text: TX HB601 | 2023-2024 | 88th Legislature | Engrossed

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Bill Title: Relating to deceptive, unfair, or prohibited practices by an insurer.

Sponsorship: Partisan Bill (Republican 1)

Status: (Engrossed - Dead) 2023-05-15 - Received from the House [HB601 Detail]

Download: Texas-2023-HB601-Engrossed.html

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88R15698 SCL-F
By: Jetton H.B. No. 601

A BILL TO BE ENTITLED
AN ACT
relating to deceptive, unfair, or prohibited practices by an
insurer.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 542.003(b), Insurance Code, is amended
to read as follows:
(b) Any of the following acts by an insurer constitutes
unfair claim settlement practices:
(1) knowingly misrepresenting to a claimant pertinent
facts or policy provisions relating to coverage at issue;
(2) failing to acknowledge with reasonable promptness
pertinent communications relating to a claim arising under the
insurer's policy;
(3) failing to adopt and implement reasonable
standards for the prompt investigation of claims arising under the
insurer's policies;
(4) not attempting in good faith to effect a prompt,
fair, and equitable settlement of a claim submitted in which
liability has become reasonably clear;
(5) compelling a policyholder to institute a suit to
recover an amount due under a policy by offering substantially less
than the amount ultimately recovered in a suit brought by the
policyholder;
(6) compelling a policyholder to retain a public
insurance adjuster to recover an amount due under a policy by
offering less than the amount ultimately recovered in a settlement
with the policyholder;
(7) failing to maintain the information required by
Section 542.005; or
(8) [(7)] committing another act the commissioner
determines by rule constitutes an unfair claim settlement practice.
SECTION 2. Section 4102.104, Insurance Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) Notwithstanding Subsection (b), an insurer shall pay
a commission of a license holder for services provided to an insured
as a result of the insurer violating Chapter 541 or Section
542.003(b). The payment required by this subsection is in addition
to any other payment required under other law.
SECTION 3. Section 542.003, Insurance Code, as amended by
this Act, applies only to an offer made on or after the effective
date of this Act. An offer made 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 continues in effect for
that purpose.
SECTION 4. Section 4102.104(b-1), Insurance Code, as added
by this Act, applies only to services provided under a contract
between a public insurance adjuster and an insured entered into on
or after the effective date of this Act.
SECTION 5. This Act takes effect September 1, 2023.