Texas 2015 - 84th Regular

Texas House Bill HB1732 Compare Versions

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1	1	84R6638 AJA-D
2	2	By: Smithee H.B. No. 1732
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to dispute resolution for certain claims arising under
8	8	insurance policies issued by the Fair Access to Insurance
9	9	Requirements (FAIR) Plan Association; authorizing fees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2211.003, Insurance Code, is amended by
12	12	adding Subsection (c) to read as follows:
13	13	(c) Subsection (a) does not apply to a person who is
14	14	required to resolve a dispute under Subchapter D-1.
15	15	SECTION 2. Subchapter A, Chapter 2211, Insurance Code, is
16	16	amended by adding Section 2211.004 to read as follows:
17	17	Sec. 2211.004. CERTAIN CONDUCT IN DISPUTE RESOLUTION
18	18	PROHIBITED. (a) For purposes of this section, "presiding officer"
19	19	includes a judge, mediator, arbitrator, appraiser, or panel member.
20	20	(b) If a person insured under this chapter is assigned to
21	21	act as presiding officer to preside over or resolve a dispute
22	22	involving the association and another person insured under this
23	23	chapter, the presiding officer shall, not later than the seventh
24	24	day after the date of assignment, give written notice to the
25	25	association and to each other party to the dispute, or the
26	26	association's or other party's attorney, that the presiding officer
27	27	is insured under this chapter.
28	28	(c) In a proceeding with respect to which the commissioner
29	29	has authority to designate the presiding officer, the association
30	30	or other party that receives notice under Subsection (b) may file
31	31	with the commissioner a written objection to the assignment of the
32	32	presiding officer to the dispute. The written objection must
33	33	contain the factual basis on which the association or other party
34	34	objects to the assignment.
35	35	(d) The commissioner shall assign a different presiding
36	36	officer to the dispute if, after reviewing the objection filed
37	37	under Subsection (c), the commissioner determines that the
38	38	presiding officer originally assigned to the dispute has a direct
39	39	financial or personal interest in the outcome of the dispute.
40	40	(e) The association or other party must file an objection
41	41	under Subsection (c) not later than the earlier of:
42	42	(1) the seventh day after the date the association or
43	43	other party receives actual notice that the presiding officer is
44	44	insured under this chapter; or
45	45	(2) the seventh day before the date of the first
46	46	proceeding concerning the dispute.
47	47	(f) The commissioner may, on a showing of good cause, extend
48	48	the deadline to file an objection under Subsection (e).
49	49	SECTION 3. Subchapter D, Chapter 2211, Insurance Code, is
50	50	amended by adding Section 2211.158 to read as follows:
51	51	Sec. 2211.158. REQUIRED POLICY PROVISIONS: DEADLINE FOR
52	52	FILING CLAIM; NOTICE CONCERNING RESOLUTION OF CERTAIN DISPUTES.
53	53	(a) An insurance policy issued by the association must:
54	54	(1) require an insured to file a claim under the policy
55	55	not later than the first anniversary of the date on which the damage
56	56	to property that is the basis of the claim occurs; and
57	57	(2) contain, in boldface type, a conspicuous notice
58	58	concerning the resolution of disputes under the policy, including:
59	59	(A) the processes and deadlines for appraisal
60	60	under Section 2211.174 and alternative dispute resolution under
61	61	Section 2211.175;
62	62	(B) the binding effect of appraisal under Section
63	63	2211.174; and
64	64	(C) the necessity of complying with the
65	65	requirements of Subchapter D-1 to seek relief, including judicial
66	66	relief.
67	67	(b) The commissioner, on a showing of good cause by a person
68	68	insured under this chapter, may extend the one-year period
69	69	described by Subsection (a)(1) for a period not to exceed 180 days.
70	70	SECTION 4. Chapter 2211, Insurance Code, is amended by
71	71	adding Subchapter D-1 to read as follows:
72	72	SUBCHAPTER D-1. CLAIMS: SETTLEMENT AND DISPUTE RESOLUTION
73	73	Sec. 2211.171. DEFINITIONS. In this subchapter:
74	74	(1) "Association policy" means an insurance policy
75	75	issued by the association.
76	76	(2) "Claim" means a request for payment under an
77	77	association policy. The term also includes any other claim against
78	78	the association, or an agent or representative of the association,
79	79	relating to an insured loss, under any theory or cause of action of
80	80	any kind, regardless of the theory under which the claim is
81	81	asserted, the cause of action brought, or the type of damages
82	82	sought.
83	83	(3) "Claimant" means a person who makes a claim.
84	84	Sec. 2211.172. EXCLUSIVE REMEDIES AND LIMITATION ON AWARD.
85	85	(a) This subchapter provides the exclusive remedies for a claim
86	86	against the association, including an agent or representative of
87	87	the association.
88	88	(b) Subject to Section 2211.176, the association may not be
89	89	held liable for any amount other than covered losses payable under
90	90	the terms of the association policy.
91	91	(c) The association, or an agent or representative of the
92	92	association, may not be held liable for damages under Chapter 17,
93	93	Business & Commerce Code, or, except as otherwise specifically
94	94	provided by this chapter, under any provision of any law providing
95	95	for additional damages, exemplary damages, or a penalty.
96	96	Sec. 2211.173. FILING OF CLAIM; CLAIM PROCESSING. (a)
97	97	Subject to Section 2211.158(b), an insured must file a claim under
98	98	an association policy not later than the first anniversary of the
99	99	date on which the damage to property that is the basis of the claim
100	100	occurs.
101	101	(b) The claimant may submit written materials, comments,
102	102	documents, records, and other information to the association
103	103	relating to the claim. If the claimant fails to submit information
104	104	in the claimant's possession that is necessary for the association
105	105	to determine whether to accept or reject a claim, the association
106	106	may, not later than the 30th day after the date the claim is filed,
107	107	request in writing the necessary information from the claimant.
108	108	(c) The association shall, on request, provide a claimant
109	109	reasonable access to all information relevant to the determination
110	110	of the association concerning the claim. The claimant may copy the
111	111	information at the claimant's own cost or may request the
112	112	association to provide a copy of all or part of the information to
113	113	the claimant. The association may charge a claimant the actual cost
114	114	incurred by the association in providing a copy of information
115	115	under this section, excluding any amount for labor involved in
116	116	making any information or copy of information available to a
117	117	claimant.
118	118	(d) Unless the applicable 60-day period described by this
119	119	subsection is extended by the commissioner under Section 2211.180,
120	120	not later than the later of the 60th day after the date the
121	121	association receives a claim or the 60th day after the date the
122	122	association receives information requested under Subsection (b),
123	123	the association shall provide the claimant, in writing,
124	124	notification that:
125	125	(1) the association has accepted coverage for the
126	126	claim in full;
127	127	(2) the association has accepted coverage for the
128	128	claim in part and has denied coverage for the claim in part; or
129	129	(3) the association has denied coverage for the claim
130	130	in full.
131	131	(e) In a notice provided under Subsection (d)(1), the
132	132	association must inform the claimant of the amount of loss the
133	133	association will pay and of the time limit to demand appraisal under
134	134	Section 2211.174.
135	135	(f) In a notice provided under Subsection (d)(2) or (3), the
136	136	association must inform the claimant of, as applicable:
137	137	(1) the portion of the loss for which the association
138	138	accepts coverage and the amount of loss the association will pay;
139	139	(2) the portion of the loss for which the association
140	140	denies coverage and a detailed summary of the manner in which the
141	141	association determined not to accept coverage for that portion of
142	142	the claim; and
143	143	(3) the time limit to:
144	144	(A) demand appraisal under Section 2211.174 of
145	145	the portion of the loss for which the association accepts coverage;
146	146	and
147	147	(B) provide notice of intent to bring an action
148	148	as required by Section 2211.175.
149	149	(g) In addition to a notice provided under Subsection (d)(2)
150	150	or (3), the association shall provide a claimant with a form on
151	151	which the claimant may provide the association notice of intent to
152	152	bring an action as required by Section 2211.175.
153	153	Sec. 2211.1731. PAYMENT OF CLAIM. (a) Except as provided
154	154	by Subsection (b), if the association notifies a claimant under
155	155	Section 2211.173(d)(1) or (2) that the association has accepted
156	156	coverage for a claim in full or has accepted coverage for a claim in
157	157	part, the association shall pay the accepted claim or accepted
158	158	portion of the claim not later than the 10th day after the date
159	159	notice is made.
160	160	(b) If payment of the accepted claim or accepted portion of
161	161	the claim is conditioned on the performance of an act by the
162	162	claimant, the association shall pay the claim not later than the
163	163	10th day after the date the act is performed.
164	164	Sec. 2211.174. DISPUTES CONCERNING AMOUNT OF ACCEPTED
165	165	COVERAGE. (a) If the association accepts coverage for a claim in
166	166	full and a claimant disputes only the amount of loss the association
167	167	will pay for the claim, or if the association accepts coverage for a
168	168	claim in part and a claimant disputes the amount of loss the
169	169	association will pay for the accepted portion of the claim, the
170	170	claimant may request from the association a detailed summary of the
171	171	manner in which the association determined the amount of loss the
172	172	association will pay.
173	173	(b) If a claimant disputes the amount of loss the
174	174	association will pay for a claim or a portion of a claim, the
175	175	claimant, not later than the 60th day after the date the claimant
176	176	receives the notice described by Section 2211.173(d)(1) or (2), may
177	177	demand appraisal in accordance with the terms of the association
178	178	policy.
179	179	(c) If a claimant, on a showing of good cause and not later
180	180	than the 15th day after the expiration of the 60-day period
181	181	described by Subsection (b), requests in writing that the 60-day
182	182	period be extended, the association may grant an additional 30-day
183	183	period in which the claimant may demand appraisal.
184	184	(d) If a claimant demands appraisal under this section:
185	185	(1) the appraisal must be conducted as provided by the
186	186	association policy; and
187	187	(2) the claimant and the association are responsible
188	188	in equal shares for paying any costs incurred or charged in
189	189	connection with the appraisal, including a fee charged under
190	190	Subsection (e).
191	191	(e) If a claimant demands appraisal under this section and
192	192	the appraiser retained by the claimant and the appraiser retained
193	193	by the association are able to agree on an appraisal umpire to
194	194	participate in the resolution of the dispute, the appraisal umpire
195	195	is the umpire chosen by the two appraisers. If the appraiser
196	196	retained by the claimant and the appraiser retained by the
197	197	association are unable to agree on an appraisal umpire to
198	198	participate in the resolution of the dispute, the commissioner
199	199	shall select an appraisal umpire from a roster of qualified umpires
200	200	maintained by the department. The department may:
201	201	(1) require appraisers to register with the department
202	202	as a condition of being placed on the roster; and
203	203	(2) charge a reasonable registration fee to defray the
204	204	cost incurred by the department in maintaining the roster and the
205	205	commissioner in selecting an appraisal umpire under this
206	206	subsection.
207	207	(f) Except as provided by Subsection (g), the appraisal
208	208	decision is binding on the claimant and the association as to the
209	209	amount of loss the association will pay for a fully accepted claim
210	210	or the accepted portion of a partially accepted claim and is not
211	211	appealable or otherwise reviewable. A claimant that does not
212	212	demand appraisal before the expiration of the periods described by
213	213	Subsections (b) and (c) waives the claimant's right to contest the
214	214	association's determination of the amount of loss the association
215	215	will pay with reference to a fully accepted claim or the accepted
216	216	portion of a partially accepted claim.
217	217	(g) A claimant or the association may, not later than the
218	218	second anniversary of the date of an appraisal decision, file an
219	219	action in a district court in the county in which the loss that is
220	220	the subject of the appraisal occurred to vacate the appraisal
221	221	decision and begin a new appraisal process if:
222	222	(1) the appraisal decision was obtained by corruption,
223	223	fraud, or other undue means;
224	224	(2) the rights of the claimant or the association were
225	225	prejudiced by:
226	226	(A) evident partiality by an appraisal umpire;
227	227	(B) corruption in an appraiser or appraisal
228	228	umpire; or
229	229	(C) misconduct or wilful misbehavior of an
230	230	appraiser or appraisal umpire; or
231	231	(3) an appraiser or appraisal umpire:
232	232	(A) exceeded the appraiser's or appraisal
233	233	umpire's powers;
234	234	(B) refused to postpone the appraisal after a
235	235	showing of sufficient cause for the postponement;
236	236	(C) refused to consider evidence material to the
237	237	claim; or
238	238	(D) conducted the appraisal in a manner that
239	239	substantially prejudiced the rights of the claimant or the
240	240	association.
241	241	(h) Except as provided by Subsection (g), a claimant may not
242	242	bring an action against the association with reference to a claim
243	243	for which the association has accepted coverage in full.
244	244	Sec. 2211.175. DISPUTES CONCERNING DENIED COVERAGE. (a)
245	245	If the association denies coverage for a claim in part or in full
246	246	and the claimant disputes that determination, the claimant, not
247	247	later than the expiration of the limitations period described by
248	248	Section 2211.177(a), but after the date the claimant receives the
249	249	notice described by Section 2211.173(d)(2) or (3), must provide the
250	250	association with notice that the claimant intends to bring an
251	251	action against the association concerning the partial or full
252	252	denial of the claim. A claimant that does not provide notice of
253	253	intent to bring an action before the expiration of the period
254	254	described by this subsection waives the claimant's right to contest
255	255	the association's partial or full denial of coverage and is barred
256	256	from bringing an action against the association concerning the
257	257	denial of coverage.
258	258	(b) If a claimant provides notice of intent to bring an
259	259	action under Subsection (a), the association may require the
260	260	claimant, as a prerequisite to filing the action against the
261	261	association, to submit the dispute to alternative dispute
262	262	resolution by mediation or moderated settlement conference, as
263	263	provided by Chapter 154, Civil Practice and Remedies Code.
264	264	(c) The association must request alternative dispute
265	265	resolution of a dispute described by Subsection (b) not later than
266	266	the 60th day after the date the association receives from the
267	267	claimant notice of intent to bring an action.
268	268	(d) Alternative dispute resolution under this section must
269	269	be completed not later than the 60th day after the date a request
270	270	for alternative dispute resolution is made under Subsection (c).
271	271	The 60-day period described by this subsection may be extended by
272	272	the commissioner in accordance with Section 2211.180 or by the
273	273	association and a claimant by mutual consent.
274	274	(e) If the claimant is not satisfied after completion of
275	275	alternative dispute resolution, or if alternative dispute
276	276	resolution is not completed before the expiration of the 60-day
277	277	period described by Subsection (d) or any extension under that
278	278	subsection, the claimant may bring an action against the
279	279	association in a district court in the county in which the loss that
280	280	is the subject of the coverage denial occurred. An action brought
281	281	under this subsection shall be presided over by a judge appointed by
282	282	the judicial panel on multidistrict litigation designated under
283	283	Section 74.161, Government Code. A judge appointed under this
284	284	section must be an active judge, as defined by Section 74.041,
285	285	Government Code, who is a resident of the county in which the loss
286	286	that is the basis of the disputed denied coverage occurred or of a
287	287	county adjacent to the county in which that loss occurred.
288	288	(f) If a claimant brings an action against the association
289	289	concerning a partial or full denial of coverage, the court shall
290	290	abate the action until the notice of intent to bring an action has
291	291	been provided and, if requested by the association, the dispute has
292	292	been submitted to alternative dispute resolution, in accordance
293	293	with this section.
294	294	(g) A moderated settlement conference under this section
295	295	may be conducted by a panel consisting of one or more impartial
296	296	third parties.
297	297	(h) If the association requests mediation under this
298	298	section, the claimant and the association are responsible in equal
299	299	shares for paying any costs incurred or charged in connection with
300	300	the mediation.
301	301	(i) If the association requests mediation under this
302	302	section, and the claimant and the association are able to agree on a
303	303	mediator, the mediator is the mediator agreed to by the claimant and
304	304	the association. If the claimant and the association are unable to
305	305	agree on a mediator, the commissioner shall select a mediator from a
306	306	roster of qualified mediators maintained by the department. The
307	307	department may:
308	308	(1) require mediators to register with the department
309	309	as a condition of being placed on the roster; and
310	310	(2) charge a reasonable registration fee to defray the
311	311	cost incurred by the department in maintaining the roster and the
312	312	commissioner in selecting a mediator under this section.
313	313	(j) The commissioner shall establish rules to implement
314	314	this section, including provisions for expediting alternative
315	315	dispute resolution, facilitating the ability of a claimant to
316	316	appear with or without counsel, establishing qualifications
317	317	necessary for mediators to be placed on the roster maintained by the
318	318	department under Subsection (i), and providing that formal rules of
319	319	evidence shall not apply to the proceedings.
320	320	Sec. 2211.176. ISSUES BROUGHT TO SUIT; LIMITATIONS ON
321	321	RECOVERY. (a) The only issues a claimant may raise in an action
322	322	brought against the association under Section 2211.175 are:
323	323	(1) whether the association's denial of coverage was
324	324	proper; and
325	325	(2) the amount of the damages described by Subsection
326	326	(b) to which the claimant is entitled, if any.
327	327	(b) Except as provided by Subsections (c) and (d), a
328	328	claimant that brings an action against the association under
329	329	Section 2211.175 may recover only:
330	330	(1) the covered loss payable under the terms of the
331	331	association policy less, if applicable, the amount of loss already
332	332	paid by the association for any portion of a covered loss for which
333	333	the association accepted coverage;
334	334	(2) prejudgment interest from the first day after the
335	335	date specified in Section 2211.1731 by which the association was or
336	336	would have been required to pay an accepted claim or the accepted
337	337	portion of a claim, at the prejudgment interest rate provided by
338	338	Subchapter B, Chapter 304, Finance Code; and
339	339	(3) court costs and reasonable and necessary
340	340	attorney's fees.
341	341	(c) Nothing in this chapter, including Subsection (b), may
342	342	be construed to limit the consequential damages, or the amount of
343	343	consequential damages, that a claimant may recover under common law
344	344	in an action against the association.
345	345	(d) A claimant that brings an action against the association
346	346	under Section 2211.175 may, in addition to the covered loss
347	347	described by Subsection (b)(1) and any consequential damages
348	348	recovered by the claimant under common law, recover damages in an
349	349	amount not to exceed the aggregated amount of the covered loss
350	350	described by Subsection (b)(1) and the consequential damages
351	351	recovered under common law if the claimant proves by clear and
352	352	convincing evidence that the association mishandled the claimant's
353	353	claim to the claimant's detriment by intentionally:
354	354	(1) failing to meet the deadlines or timelines
355	355	established under this subchapter without good cause, including the
356	356	applicable deadline established under Section 2211.1731 for
357	357	payment of an accepted claim or the accepted portion of a claim;
358	358	(2) failing to provide the notice required under
359	359	Section 2211.173(d);
360	360	(3) rejecting a claim without conducting a reasonable
361	361	investigation with respect to the claim; or
362	362	(4) denying coverage for a claim in part or in full if
363	363	the association's liability has become reasonably clear as a result
364	364	of the association's investigation with respect to the portion of
365	365	the claim that was denied.
366	366	(e) For purposes of Subsection (d), "intentionally" means
367	367	actual awareness of the facts surrounding the act or practice
368	368	listed in Subsection (d)(1), (2), (3), or (4), coupled with the
369	369	specific intent that the claimant suffer harm or damages as a result
370	370	of the act or practice. Specific intent may be inferred from
371	371	objective manifestations that the association acted intentionally
372	372	or from facts that show that the association acted with flagrant
373	373	disregard of the duty to avoid the acts or practices listed in
374	374	Subsection (d)(1), (2), (3), or (4).
375	375	Sec. 2211.177. LIMITATIONS PERIOD. (a) Notwithstanding
376	376	any other law, a claimant that brings an action against the
377	377	association under Section 2211.175 must bring the action not later
378	378	than the second anniversary of the date on which the person receives
379	379	a notice described by Section 2211.173(d)(2) or (3).
380	380	(b) This section is a statute of repose and controls over
381	381	any other applicable limitations period.
382	382	Sec. 2211.178. CONSTRUCTION WITH OTHER LAW. (a) To the
383	383	extent of any conflict between a provision of this subchapter and
384	384	any other law, the provision of this subchapter prevails.
385	385	(b) Notwithstanding any other law, the association may not
386	386	bring an action against a claimant, for declaratory or other
387	387	relief, before the 180th day after the date an appraisal under
388	388	Section 2211.174, or alternative dispute resolution under Section
389	389	2211.175, is completed.
390	390	Sec. 2211.179. RULEMAKING. (a) The commissioner shall
391	391	adopt rules regarding the provisions of this subchapter, including
392	392	rules concerning:
393	393	(1) qualifications and selection of appraisers for the
394	394	appraisal procedure and mediators for the mediation process;
395	395	(2) procedures and deadlines for the payment and
396	396	handling of claims by the association as well as the procedures and
397	397	deadlines for a review of a claim by the association; and
398	398	(3) any other matters regarding the handling of claims
399	399	that are not inconsistent with this subchapter.
400	400	(b) All rules adopted by the commissioner under this section
401	401	must promote the fairness of the process, protect the rights of
402	402	aggrieved policyholders, and ensure that policyholders may
403	403	participate in the claims review process without the necessity of
404	404	engaging legal counsel.
405	405	Sec. 2211.180. COMMISSIONER EXTENSION OF DEADLINES. (a)
406	406	The commissioner, on a showing of good cause, may extend any
407	407	deadline established under this subchapter.
408	408	(b) For the purposes of Subsection (a), "good cause"
409	409	includes military deployment.
410	410	Sec. 2211.181. OMBUDSMAN PROGRAM. (a) The department
411	411	shall establish an ombudsman program to provide information and
412	412	educational programs to assist persons insured under this chapter
413	413	with the claim processes under this subchapter.
414	414	(b) Not later than March 1 of each year, the department
415	415	shall prepare and submit to the commissioner a budget for the
416	416	ombudsman program, including approval of all expenditures incurred
417	417	in administering and operating the program. The commissioner shall
418	418	adopt or modify and adopt the budget not later than April 1 of the
419	419	year in which the budget is submitted.
420	420	(c) Not later than May 1 of each year, the association shall
421	421	transfer to the ombudsman program money in an amount equal to the
422	422	amount of the budget adopted under Subsection (b). The ombudsman
423	423	program, not later than April 30 of each year, shall return to the
424	424	association any unexpended funds that the program received from the
425	425	association in the previous year.
426	426	(d) The department shall, not later than the 60th day after
427	427	the date of a catastrophic event, as defined by the commissioner for
428	428	the purposes of this subsection, prepare and submit an amended
429	429	budget to the commissioner for approval and report to the
430	430	commissioner the approximate number of claimants eligible for
431	431	ombudsman services. The commissioner shall adopt rules as
432	432	necessary to implement an amended budget submitted under this
433	433	section, including rules regarding the transfer of additional money
434	434	from the association to the program.
435	435	(e) The ombudsman program may provide to persons insured
436	436	under this chapter information and educational programs through:
437	437	(1) informational materials;
438	438	(2) toll-free telephone numbers;
439	439	(3) public meetings;
440	440	(4) outreach centers;
441	441	(5) the Internet; and
442	442	(6) other reasonable means.
443	443	(f) The ombudsman program is administratively attached to
444	444	the department. The department shall provide the staff, services,
445	445	and facilities necessary for the ombudsman program to operate,
446	446	including:
447	447	(1) administrative assistance and service, including
448	448	budget planning and purchasing;
449	449	(2) personnel services;
450	450	(3) office space; and
451	451	(4) computer equipment and support.
452	452	(g) The ombudsman program shall prepare and make available
453	453	to each person insured under this chapter information describing
454	454	the functions of the ombudsman program.
455	455	(h) The association, in the manner prescribed by the
456	456	commissioner by rule, shall notify each person insured under this
457	457	chapter concerning the operation of the ombudsman program.
458	458	(i) The commissioner may adopt rules as necessary to
459	459	implement this section.
460	460	SECTION 5. (a) Except as otherwise specifically provided
461	461	by this section, this Act applies only to an insurance policy that
462	462	is delivered, issued for delivery, or renewed by the Fair Access to
463	463	Insurance Requirements Plan Association on or after the 60th day
464	464	after the effective date of this Act. An insurance policy that is
465	465	delivered, issued for delivery, or renewed by the Fair Access to
466	466	Insurance Requirements Plan Association before the 60th day after
467	467	the effective date of this Act is governed by the law as it existed
468	468	immediately before the effective date of this Act, and the former
469	469	law is continued in effect for that purpose.
470	470	(b) The deadline to file a claim under an insurance policy
471	471	delivered, issued for delivery, or renewed before the 60th day
472	472	after the effective date of this Act by the Fair Access to Insurance
473	473	Requirements Plan Association is governed by the law applicable to
474	474	the claim immediately before the effective date of this Act, and
475	475	that law is continued in effect for that purpose.
476	476	(c) If a person insured by the Fair Access to Insurance
477	477	Requirements Plan Association disputes the amount the association
478	478	will pay for a partially or fully accepted claim filed by the
479	479	person, Section 2211.174, Insurance Code, as added by this Act,
480	480	applies only if the insurance policy under which the claim is filed
481	481	is delivered, issued for delivery, or renewed on or after the 60th
482	482	day after the effective date of this Act.
483	483	(d) If a person insured by the Fair Access to Insurance
484	484	Requirements Plan Association disputes the amount the association
485	485	will pay for a partially or fully accepted claim filed by the person
486	486	and the insurance policy under which the claim is filed is
487	487	delivered, issued for delivery, or renewed before the 60th day
488	488	after the effective date of this Act:
489	489	(1) Section 2211.174, Insurance Code, as added by this
490	490	Act, does not apply to the resolution of the dispute; and
491	491	(2) notwithstanding any other provision of this Act,
492	492	the claimant must attempt to resolve the dispute through any
493	493	appraisal process contained in the association policy under which
494	494	the claim is filed before an action may be brought against the Fair
495	495	Access to Insurance Requirements Plan Association concerning the
496	496	claim.
497	497	(e) The person insured by the Fair Access to Insurance
498	498	Requirements Plan Association and the association may agree that an
499	499	appraisal conducted under Subsection (d)(2) of this section is
500	500	binding on the parties.
501	501	(f) An action brought against the association concerning a
502	502	claim described by Subsection (d) of this section shall be abated
503	503	until the appraisal process under Subsection (d)(2) of this section
504	504	is completed.
505	505	(g) Notwithstanding Sections 2211.175 and 2211.176,
506	506	Insurance Code, as added by this Act, Subsection (b) of this
507	507	section, or any other provision of this Act, Sections 2211.176(b),
508	508	(c), (d), and (e), Insurance Code, apply to any cause of action that
509	509	accrues against the Fair Access to Insurance Requirements Plan
510	510	Association on or after the effective date of this Act and the basis
511	511	of which is a claim filed under an insurance policy that is
512	512	delivered, issued for delivery, or renewed by the association,
513	513	regardless of the date on which the policy was delivered, issued for
514	514	delivery, or renewed.
515	515	SECTION 6. This Act takes effect immediately if it receives
516	516	a vote of two-thirds of all the members elected to each house, as
517	517	provided by Section 39, Article III, Texas Constitution. If this
518	518	Act does not receive the vote necessary for immediate effect, this
519	519	Act takes effect September 1, 2015.