By: Smithee H.B. No. 4242
Substitute the following for H.B. No. 4242:
By: Smithee C.S.H.B. No. 4242
A BILL TO BE ENTITLED
AN ACT
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 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. The change in law made by this Act applies 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, 2009.