Bill Text: TX SB1054 | 2011-2012 | 82nd Legislature | Engrossed
Bill Title: Relating to notice of acceptance or rejection of an insurance claim.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2011-05-16 - Committee report sent to Calendars [SB1054 Detail]
Download: Texas-2011-SB1054-Engrossed.html
By: Hegar | S.B. No. 1054 |
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relating to notice of acceptance or rejection of an insurance | ||
claim. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 542.056, Insurance Code, is amended by | ||
adding Subsections (e), (f), and (g) to read as follows: | ||
(e) If an insurer pays a claim not later than the 15th | ||
business day after the date the insurer receives all items, | ||
statements, and forms required by the insurer to secure final proof | ||
of loss, or not later than the 30th day if the insurer has a | ||
reasonable basis to believe that the loss that is the subject of the | ||
claim resulted from arson, the payment of the claim constitutes | ||
notice of acceptance of the claim and, notwithstanding Subsection | ||
(a), the insurer is not required to provide any other notice under | ||
this section. | ||
(f) If an insurer makes a partial payment on a claim under | ||
this section or rejects any portion of a claim, the insurer shall | ||
include a written notice with the partial payment that states the | ||
reason for the rejection. | ||
(g) For purposes of Subsections (e) and (f), payment | ||
includes an electronic funds transfer to an account identified by | ||
the claimant. | ||
SECTION 2. The change in law made by this Act applies only | ||
to a claim filed on or after the effective date of this Act. A claim | ||
filed before the effective date of this Act is governed by the law | ||
as it existed immediately before that date, and that law is | ||
continued in effect for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2011. |