| 1 | 1 | | S.B. No. 1812 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to notice to a life insurer of an adverse claim to policy |
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| 6 | 6 | | proceeds by a person with a bona fide legal claim. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 542.058, Insurance Code, is amended by |
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| 9 | 9 | | amending Subsection (b) and adding Subsection (c) to read as |
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| 10 | 10 | | follows: |
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| 11 | 11 | | (b) Subsection (a) [This section] does not apply in a case |
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| 12 | 12 | | in which it is found as a result of arbitration or litigation that a |
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| 13 | 13 | | claim received by an insurer is invalid and should not be paid by |
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| 14 | 14 | | the insurer. |
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| 15 | 15 | | (c) A life insurer that receives notice of an adverse, bona |
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| 16 | 16 | | fide claim to all or part of the proceeds of the policy before the |
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| 17 | 17 | | applicable payment deadline under Subsection (a) shall pay the |
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| 18 | 18 | | claim or properly file an interpleader action and tender the |
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| 19 | 19 | | benefits into the registry of the court not later than the 90th day |
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| 20 | 20 | | after the date the insurer receives all items, statements, and |
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| 21 | 21 | | forms reasonably requested and required under Section 542.055. A |
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| 22 | 22 | | life insurer that delays payment of the claim or the filing of an |
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| 23 | 23 | | interpleader and tender of policy proceeds for more than 90 days |
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| 24 | 24 | | shall pay damages and other items as provided by Section 542.060 |
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| 25 | 25 | | until the claim is paid or an interpleader is properly filed. |
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| 26 | 26 | | SECTION 2. The change in law made by this Act applies only |
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| 27 | 27 | | to a claim filed with a life insurer on or after the effective date |
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| 28 | 28 | | of this Act. A claim filed with a life insurer before that date is |
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| 29 | 29 | | governed by the law in effect on the date that the claim was filed, |
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| 30 | 30 | | and the former law is continued in effect for that purpose. |
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| 31 | 31 | | SECTION 3. This Act takes effect immediately if it receives |
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| 32 | 32 | | a vote of two-thirds of all the members elected to each house, as |
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| 33 | 33 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 34 | 34 | | Act does not receive the vote necessary for immediate effect, this |
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| 35 | 35 | | Act takes effect September 1, 2009. |
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| 36 | 36 | | ______________________________ ______________________________ |
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| 37 | 37 | | President of the Senate Speaker of the House |
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| 38 | 38 | | I hereby certify that S.B. No. 1812 passed the Senate on |
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| 39 | 39 | | April 30, 2009, by the following vote: Yeas 31, Nays 0; and that |
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| 40 | 40 | | the Senate concurred in House amendment on May 29, 2009, by the |
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| 41 | 41 | | following vote: Yeas 31, Nays 0. |
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| 42 | 42 | | ______________________________ |
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| 43 | 43 | | Secretary of the Senate |
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| 44 | 44 | | I hereby certify that S.B. No. 1812 passed the House, with |
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| 45 | 45 | | amendment, on May 26, 2009, by the following vote: Yeas 140, |
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| 46 | 46 | | Nays 3, two present not voting. |
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| 47 | 47 | | ______________________________ |
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| 48 | 48 | | Chief Clerk of the House |
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| 49 | 49 | | Approved: |
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| 50 | 50 | | ______________________________ |
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| 51 | 51 | | Date |
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| 52 | 52 | | ______________________________ |
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| 53 | 53 | | Governor |
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