Bill Text: TX HB649 | 2019-2020 | 86th Legislature | Introduced

Texas House Bill 649 (Prior Session Legislation)

Introduced

Bill Title: Relating to disclosures by liability insurers and policyholders to third-party claimants; providing an administrative penalty.

Sponsorship: Moderate Partisan Bill (Democrat 5-1)

Status: (Introduced - Dead) 2019-04-02 - Left pending in committee [HB649 Detail]

Download: Texas-2019-HB649-Introduced.html

	86R2702 JES-F

	By: Krause	H.B. No. 649



	A BILL TO BE ENTITLED
	AN ACT
	relating to disclosures by liability insurers and policyholders to
	third-party claimants; providing an administrative penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 542, Insurance Code, is amended by
	adding Subchapter C-2 to read as follows:
	SUBCHAPTER C-2. DISCLOSURE OF POLICY INFORMATION TO THIRD-PARTY
	CLAIMANTS
	Sec. 542.141. DISCLOSURE BY INSURER. (a) This section
	applies to an insurer that receives:
	(1) a written request for policy information from a
	claimant asserting a claim that is or might be covered under
	liability insurance coverage provided by the insurer to a
	policyholder against whom the claim is asserted; or
	(2) a claimant's request for policy information
	forwarded under Section 542.142.
	(b) An insurer described by Subsection (a) shall provide to
	the claimant:
	(1) a sworn statement of an officer or claims manager
	of the insurer that contains the following information for each
	policy known by the insurer that provides or may provide relevant
	coverage, including excess or umbrella coverage:
	(A) the name of the insurer;
	(B) the name of each insured;
	(C) the limits of liability coverage; and
	(D) any policy or coverage defense the insurer
	reasonably believes is available to the insurer at the time the
	sworn statement is made; and
	(2) a copy of each policy described by Subdivision (1)
	under which the insurer provides coverage.
	(c) An insurer that fails to comply with this section is
	subject to an administrative penalty under Chapter 84 of not more
	than $500.
	Sec. 542.142. DISCLOSURE BY POLICYHOLDER. (a) This
	section applies to a policyholder that receives a written request
	for policy information from a claimant asserting a claim against
	the policyholder that the policyholder believes is or may be
	covered under liability insurance coverage provided to the
	policyholder.
	(b) A policyholder described by Subsection (a) shall
	promptly:
	(1) disclose to the claimant the name of and type of
	coverage provided by each insurer that provides or may provide
	liability coverage for the claim; and
	(2) forward the claimant's request to each insurer
	included in the disclosure under Subdivision (1).
	Sec. 542.143. INSURER'S DEADLINE FOR PROVIDING REQUESTED
	INFORMATION. An insurer shall provide the information requested
	under Section 542.141 or 542.142 to the claimant not later than the
	30th day after the date the insurer receives the request from the
	claimant or policyholder.
	Sec. 542.144. AMENDMENT OF STATEMENT. (a) An insurer that
	is aware of a material change that affects a fact stated in the
	insurer's sworn statement under Section 542.141 or a policyholder
	that is aware of a material change that affects a fact stated in the
	policyholder's disclosure under Section 542.142 shall provide to
	the claimant a written amended statement or disclosure, as
	applicable, stating the material change.
	(b) An amended statement provided by an insurer under
	Subsection (a) must be sworn and include a copy of each insurance
	policy relevant to the change.
	(c) The insurer or the policyholder must provide the amended
	statement or disclosure described by Subsection (a) not later than
	the second business day after the date the insurer or policyholder
	is aware of the material change.
	SECTION 2. This Act takes effect September 1, 2019.