83R6361 MEW-D
By: Taylor S.B. No. 851
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 2301.011 to read as follows:
Sec. 2301.011. CONTRACTUAL LIMITATIONS PERIOD AND CLAIM
FILING PERIOD IN CERTAIN RESIDENTIAL OR COMMERCIAL 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 wholly or
partly denies 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
2301.011, Insurance Code.
SECTION 3. Section 2301.011, 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, 2014. A
policy delivered, issued for delivery, or renewed before January 1,
2014, 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, 2013.