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


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

Spectrum: Partisan Bill (Republican 1-0)

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

Download: Texas-2023-HB601-Engrossed.html
  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.
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