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