| 1 | 1 | | 83R20057 AJA-D |
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| 2 | 2 | | By: Taylor H.B. No. 2125 |
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| 3 | 3 | | Substitute the following for H.B. No. 2125: |
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| 4 | 4 | | By: Taylor C.S.H.B. No. 2125 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to attorney's fees and interest rates that may be awarded |
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| 10 | 10 | | in connection with certain property insurance claims. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subtitle A, Title 10, Insurance Code, is amended |
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| 13 | 13 | | by adding Chapter 1808 to read as follows: |
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| 14 | 14 | | CHAPTER 1808. CLAIMS FOR PROPERTY LOSSES |
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| 15 | 15 | | Sec. 1808.001. DEFINITION. In this chapter, "claim for |
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| 16 | 16 | | property losses" means a request for payment under an insurance |
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| 17 | 17 | | policy for damage to or loss of real property or tangible personal |
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| 18 | 18 | | property alleged to be covered by the policy. |
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| 19 | 19 | | Sec. 1808.002. APPLICABILITY OF CHAPTER. (a) Except as |
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| 20 | 20 | | provided by Subsection (b), this chapter applies to any claim under |
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| 21 | 21 | | or related to an insurance policy that provides insurance coverage |
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| 22 | 22 | | against damage to or loss of real property or tangible personal |
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| 23 | 23 | | property, including a policy issued by an insurance company, |
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| 24 | 24 | | reciprocal or interinsurance exchange, mutual insurance company, |
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| 25 | 25 | | capital stock insurance company, county mutual insurance company, |
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| 26 | 26 | | Lloyd's plan, or other legal entity authorized to write property |
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| 27 | 27 | | insurance in this state. |
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| 28 | 28 | | (b) This chapter does not apply to a claim under a policy |
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| 29 | 29 | | issued by: |
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| 30 | 30 | | (1) the Texas Windstorm Insurance Association; |
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| 31 | 31 | | (2) the FAIR Plan Association; or |
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| 32 | 32 | | (3) the Texas Automobile Insurance Plan Association. |
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| 33 | 33 | | Sec. 1808.003. ATTORNEY'S FEES. An insured that brings an |
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| 34 | 34 | | action against an insurer pertaining to a claim for property losses |
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| 35 | 35 | | may not recover attorney's fees in an amount that is greater than 40 |
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| 36 | 36 | | percent of the amount by which the property loss determined to be |
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| 37 | 37 | | owed under the policy exceeds any amount of loss the insurer has |
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| 38 | 38 | | already paid for the claim. |
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| 39 | 39 | | Sec. 1808.004. LIABILITY FOR VIOLATION OF SUBCHAPTER B, |
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| 40 | 40 | | CHAPTER 542. Interest awarded to an insured under Section 542.060 |
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| 41 | 41 | | in connection with a claim for property losses must be computed |
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| 42 | 42 | | using the postjudgment interest rate determined under Section |
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| 43 | 43 | | 304.003, Finance Code, and is limited to that amount. |
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| 44 | 44 | | SECTION 2. Chapter 1808, Insurance Code, as added by this |
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| 45 | 45 | | Act, applies only to a claim under or related to an insurance policy |
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| 46 | 46 | | delivered, issued for delivery, or renewed on or after January 1, |
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| 47 | 47 | | 2014. A claim under or related to an insurance policy delivered, |
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| 48 | 48 | | issued for delivery, or renewed before January 1, 2014, is governed |
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| 49 | 49 | | by the law applicable to the claim immediately before the effective |
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| 50 | 50 | | date of this Act, and that law is continued in effect for that |
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| 51 | 51 | | purpose. |
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| 52 | 52 | | SECTION 3. This Act takes effect September 1, 2013. |
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