| 1 | 1 | | By: Hegar S.B. No. 1335 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to notice of acceptance or rejection of an insurance |
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| 7 | 7 | | claim. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 542.056, Insurance Code, is amended by |
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| 10 | 10 | | adding Subsections (e), (f), and (g) to read as follows: |
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| 11 | 11 | | (e) If an insurer pays a claim not later than the 15th |
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| 12 | 12 | | business day after the date the insurer receives all items, |
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| 13 | 13 | | statements, and forms required by the insurer to secure final proof |
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| 14 | 14 | | of loss, or not later than the 30th day if the insurer has a |
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| 15 | 15 | | reasonable basis to believe that the loss that is the subject of the |
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| 16 | 16 | | claim resulted from arson, the payment of the claim constitutes |
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| 17 | 17 | | notice of acceptance and, notwithstanding Subsection (a), the |
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| 18 | 18 | | insurer is not required to provide any other notice under this |
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| 19 | 19 | | section. |
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| 20 | 20 | | (f) If an insurer makes a partial payment under this section |
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| 21 | 21 | | or rejects any portion of a claim, the insurer shall include a |
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| 22 | 22 | | written notice with the partial payment that states the reason for |
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| 23 | 23 | | the rejection. |
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| 24 | 24 | | (g) For purposes of Subsections (e) and (f), payment |
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| 25 | 25 | | includes an electronic funds transfer to an account identified by |
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| 26 | 26 | | the claimant. |
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| 27 | 27 | | SECTION 2. The change in law made by this Act applies to a |
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| 28 | 28 | | claim filed on or after the effective date of this Act. A claim |
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| 29 | 29 | | filed before the effective date of this Act is governed by the law |
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| 30 | 30 | | as it existed immediately before that date, and that law is |
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| 31 | 31 | | continued in effect for that purpose. |
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| 32 | 32 | | SECTION 3. This Act takes effect September 1, 2009. |
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