82R9138 TRH-D
By: Vo H.B. No. 2537
A BILL TO BE ENTITLED
AN ACT
relating to the reporting of information to claims databases by
insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Insurance Code, is amended
by adding Chapter 563 to read as follows:
CHAPTER 563. PRACTICES RELATING TO CLAIMS REPORTING
Sec. 563.001. DEFINITIONS. In this chapter:
(1) "Claims database" means a database used by
insurers to share, among insurers, insureds' claims histories or
damage reports concerning covered properties.
(2) "Insurer," "personal automobile insurance," and
"residential property insurance" have the meanings assigned by
Section 2254.001.
Sec. 563.002. REPORTING TO CLAIMS DATABASE. An insurer or
an insurer's agent may not report to a claims database information
regarding an inquiry by an insured regarding coverage provided
under a personal automobile insurance policy or a residential
property insurance policy unless and until the insured files a
claim under the policy.
Sec. 563.003. NOTICE TO INSUREDS. On the issuance or
renewal of a personal automobile insurance policy or a residential
property insurance policy, or in a notice concerning a change in the
terms of a personal automobile insurance policy or a residential
property insurance policy, the insurer or the insurer's agent
shall:
(1) notify the insured or potential insured of the
insured's right under federal law to obtain a free annual claims
history report from applicable claims databases; and
(2) provide the insured or potential insured with
written instructions explaining how the insured may obtain the
annual claims history report described by Subdivision (1).
SECTION 2. This Act takes effect September 1, 2011.