| 1 | 1 | | By: Taylor of Galveston H.B. No. 2924 |
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| 2 | 2 | | Substitute the following for H.B. No. 2924: |
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| 3 | 3 | | By: Taylor of Galveston C.S.H.B. No. 2924 |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to a claim filing period and contractual limitations |
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| 9 | 9 | | period in certain property insurance policies. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is |
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| 12 | 12 | | amended by adding Section 2301.010 to read as follows: |
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| 13 | 13 | | Sec. 2301.010. CONTRACTUAL LIMITATIONS PERIOD AND CLAIM |
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| 14 | 14 | | FILING PERIOD IN CERTAIN PROPERTY INSURANCE FORMS. (a) A policy |
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| 15 | 15 | | form or printed endorsement form for residential or commercial |
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| 16 | 16 | | property insurance that is filed by an insurer or adopted by the |
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| 17 | 17 | | department under this subchapter may provide for a contractual |
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| 18 | 18 | | limitations period for filing suit on a first-party claim under the |
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| 19 | 19 | | policy. The contractual limitations period may not end before the |
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| 20 | 20 | | earlier of: |
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| 21 | 21 | | (1) two years from the date the insurer accepts or |
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| 22 | 22 | | rejects the claim; or |
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| 23 | 23 | | (2) three years from the date of the loss that is the |
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| 24 | 24 | | subject of the claim. |
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| 25 | 25 | | (b) A policy or endorsement described by Subsection (a) may |
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| 26 | 26 | | contain a provision requiring that a claim be filed with the insurer |
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| 27 | 27 | | not later than one year after the date of the loss that is the |
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| 28 | 28 | | subject of the claim. |
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| 29 | 29 | | (c) A contractual provision contrary to Subsection (a) is |
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| 30 | 30 | | void. This subsection does not affect the validity of other |
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| 31 | 31 | | provisions of a contract that may be given effect without the voided |
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| 32 | 32 | | provision to the extent those provisions are severable. |
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| 33 | 33 | | SECTION 2. Section 16.070, Civil Practice and Remedies |
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| 34 | 34 | | Code, is amended by amending Subsection (a) and adding Subsection |
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| 35 | 35 | | (c) to read as follows: |
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| 36 | 36 | | (a) Except as provided by Subsections [Subsection] (b) and |
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| 37 | 37 | | (c), a person may not enter a stipulation, contract, or agreement |
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| 38 | 38 | | that purports to limit the time in which to bring suit on the |
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| 39 | 39 | | stipulation, contract, or agreement to a period shorter than two |
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| 40 | 40 | | years. A stipulation, contract, or agreement that establishes a |
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| 41 | 41 | | limitations period that is shorter than two years is void in this |
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| 42 | 42 | | state. |
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| 43 | 43 | | (c) This section does not apply to a residential or |
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| 44 | 44 | | commercial property insurance policy that complies with Section |
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| 45 | 45 | | 2301.010, Insurance Code. |
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| 46 | 46 | | SECTION 3. Section 2301.010, Insurance Code, as added by |
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| 47 | 47 | | this Act, applies only to an insurance policy that is delivered, |
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| 48 | 48 | | issued for delivery, or renewed on or after January 1, 2012. A |
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| 49 | 49 | | policy delivered, issued for delivery, or renewed before January 1, |
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| 50 | 50 | | 2012, is governed by the law as it existed immediately before the |
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| 51 | 51 | | effective date of this Act, and that law is continued in effect for |
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| 52 | 52 | | that purpose. |
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| 53 | 53 | | SECTION 4. This Act takes effect September 1, 2011. |
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