By: Hancock H.B. No. 3221
COMMITTEE SUBSTITUTE FOR H.B. No. 3221By: Estes By: Estes
(In the Senate - Received from the House May 13, 2009;
May 14, 2009, read first time and referred to Committee on Business
and Commerce; May 23, 2009, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 0;
May 23, 2009, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to certain required notifications regarding insurance
claims and premiums.
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 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 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. Section 550.002, Insurance Code, is amended by
amending Subsection (b) and adding Subsections (b-1) and (b-2) to
read as follows:
(b) An insurer receiving automatic premium payments through
withdrawal of funds from a person's account, including an escrow
account, as authorized by that person to pay premiums on insurance
coverage provided through that insurer, may not increase the amount
of funds to be withdrawn from the account to pay premiums on that
coverage unless[:
[(1)] the insurer, not later than the 30th day before
the effective date of the increase in the premium payment amount,
notifies the person of the increase by mailing a notice through the
United States Postal Service.
(b-1) The notice must include the insurer's toll-free
telephone number, mailing address, and electronic mail address, if
applicable, through which the [and provides the] person [a postage
prepaid form that] may [be used to] object to the increase described
by Subsection (b). An objection made by the policyholder through a
telephone call, mail, or electronic mail constitutes a valid
objection for purposes of this section.
(b-2) The insurer may increase the amount of funds to be
withdrawn from the account only if [; and
[(2) neither] the insurer does not receive a valid
[nor the financial institution receives written] objection to the
increase on or before the fifth day before the date on which the
increase is scheduled to take [takes] effect.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.
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