By: Taylor of Galveston H.B. No. 2924
Substitute the following for H.B. No. 2924:
By: Taylor of Galveston C.S.H.B. No. 2924
A BILL TO BE ENTITLED
AN ACT
relating to a claim filing period and contractual limitations
period in certain property insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is
amended by adding Section 2301.010 to read as follows:
Sec. 2301.010. CONTRACTUAL LIMITATIONS PERIOD AND CLAIM
FILING PERIOD IN CERTAIN PROPERTY INSURANCE FORMS. (a) A policy
form or printed endorsement form for residential or commercial
property insurance that is filed by an insurer or adopted by the
department under this subchapter may provide for a contractual
limitations period for filing suit on a first-party claim under the
policy. The contractual limitations period may not end before the
earlier of:
(1) two years from the date the insurer accepts or
rejects the claim; or
(2) three years from the date of the loss that is the
subject of the claim.
(b) A policy or endorsement described by Subsection (a) may
contain a provision requiring that a claim be filed with the insurer
not later than one year after the date of the loss that is the
subject of the claim.
(c) A contractual provision contrary to Subsection (a) is
void. This subsection does not affect the validity of other
provisions of a contract that may be given effect without the voided
provision to the extent those provisions are severable.
SECTION 2. Section 16.070, Civil Practice and Remedies
Code, is amended by amending Subsection (a) and adding Subsection
(c) to read as follows:
(a) Except as provided by Subsections [Subsection] (b) and
(c), a person may not enter a stipulation, contract, or agreement
that purports to limit the time in which to bring suit on the
stipulation, contract, or agreement to a period shorter than two
years. A stipulation, contract, or agreement that establishes a
limitations period that is shorter than two years is void in this
state.
(c) This section does not apply to a residential or
commercial property insurance policy that complies with Section
2301.010, Insurance Code.
SECTION 3. Section 2301.010, Insurance Code, as added by
this Act, applies only to an insurance policy that is delivered,
issued for delivery, or renewed on or after January 1, 2012. A
policy delivered, issued for delivery, or renewed before January 1,
2012, is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 4. This Act takes effect September 1, 2011.