1 | 1 | | 81R11520 TJS-D |
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2 | 2 | | By: Smithee H.B. No. 2733 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to recovery under uninsured and underinsured motorist |
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8 | 8 | | insurance coverage. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Subchapter C, Chapter 1952, Insurance Code, is |
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11 | 11 | | amended by adding Sections 1952.1061, 1952.1062, and 1952.1063 to |
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12 | 12 | | read as follows: |
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13 | 13 | | Sec. 1952.1061. NOTICE OF CLAIM. A claimant provides |
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14 | 14 | | notice of a claim, including notice for the purposes of Subchapter |
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15 | 15 | | D, Chapter 541, and Subchapter B, Chapter 542, for uninsured or |
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16 | 16 | | underinsured motorist coverage by providing written notification |
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17 | 17 | | to the insurer that reasonably informs the insurer of the facts of |
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18 | 18 | | the claim. |
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19 | 19 | | Sec. 1952.1062. LEGAL DETERMINATION NOT PREREQUISITE TO |
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20 | 20 | | RECOVERY. (a) An insurer may not require as a prerequisite to |
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21 | 21 | | asserting a claim under uninsured or underinsured motorist coverage |
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22 | 22 | | a judgment or other legal determination establishing the other |
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23 | 23 | | motorist's liability or uninsured or underinsured status. A |
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24 | 24 | | judgment or other legal determination described by this subsection |
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25 | 25 | | is not a prerequisite to having a claim for the purposes of Chapters |
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26 | 26 | | 541 and 542. |
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27 | 27 | | (b) An insurer may not require as a prerequisite to payment |
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28 | 28 | | of benefits under uninsured or underinsured motorist coverage a |
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29 | 29 | | judgment or other legal determination establishing the other |
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30 | 30 | | motorist's liability or the extent of the insured's damages before |
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31 | 31 | | benefits are paid under the policy. |
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32 | 32 | | (c) An insurer must attempt in good faith to effectuate a |
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33 | 33 | | prompt, fair, and equitable settlement of a claim once liability |
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34 | 34 | | and damages have become reasonably clear. |
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35 | 35 | | Sec. 1952.1063. PREJUDGMENT INTEREST; ATTORNEY'S FEES. (a) |
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36 | 36 | | Prejudgment interest accrues on an uninsured or underinsured |
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37 | 37 | | motorist claim on the earlier of: |
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38 | 38 | | (1) the 180th day after the date the claimant notifies |
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39 | 39 | | the insurer of the claim in accordance with Section 1952.1061; or |
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40 | 40 | | (2) the date on which suit is filed against the insurer |
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41 | 41 | | to recover under the uninsured or underinsured motorist coverage. |
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42 | 42 | | (b) For the purposes of recovery of attorney's fees under |
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43 | 43 | | Section 38.002, Civil Practice and Remedies Code, a claim for |
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44 | 44 | | uninsured or underinsured motorist coverage is presented when the |
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45 | 45 | | insurer receives notice of the claim in accordance with Section |
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46 | 46 | | 1952.1061. |
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47 | 47 | | SECTION 2. (a) Except as provided by this section, the |
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48 | 48 | | change in law made by this Act applies only to a cause of action that |
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49 | 49 | | accrues on or after the effective date of this Act. A cause of |
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50 | 50 | | action that accrues before the effective date of this Act is |
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51 | 51 | | governed by the law in effect immediately before that date, and that |
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52 | 52 | | law is continued in effect for that purpose. |
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53 | 53 | | (b) The change in law made by this Act does not affect the |
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54 | 54 | | enforceability of any provision in an insurance policy delivered, |
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55 | 55 | | issued for delivery, or renewed before January 1, 2010, that |
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56 | 56 | | conflicts with the change in law made by this Act. |
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57 | 57 | | SECTION 3. This Act takes effect September 1, 2009. |
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