Bill Text: TX HB649 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to disclosures by liability insurers and policyholders to third-party claimants; providing an administrative penalty.
Spectrum: 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 |
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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. |