Texas 2015 - 84th Regular

Texas House Bill HB3394 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R12090 SCL-F
2	2	By: Alonzo H.B. No. 3394
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a direct action against an insurer and insured by third
8	8	parties and required provisions of a liability insurance policy.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Title 4, Civil Practice and Remedies Code, is
11	11	amended by adding Chapter 100B to read as follows:
12	12	CHAPTER 100B. THIRD-PARTY LIABILITY OF INSURERS AND INSUREDS
13	13	Sec. 100B.001. DEFINITIONS. In this chapter:
14	14	(1) "Insured" means an individual who is issued, is a
15	15	party to, or is a beneficiary under a liability insurance policy.
16	16	(2) "Insurer" means an insurance company or other
17	17	entity admitted to engage in business and authorized to write
18	18	liability insurance in this state, including a county mutual
19	19	insurance company, a Lloyd's plan, and a reciprocal or
20	20	interinsurance exchange.
21	21	Sec. 100B.002. DIRECT ACTION AGAINST INSURERS AND INSUREDS.
22	22	(a) Except as provided by Subsection (c), a third party who is
23	23	injured by an insured or is a survivor of an individual who was
24	24	injured by the insured may bring an action under this chapter
25	25	against the insured and the insured's insurer if the insurer is
26	26	liable under the terms of the insured's policy to indemnify the
27	27	insured for damages for the injury.
28	28	(b) The third party may bring an action under this chapter
29	29	only in the county in which the injury occurred or in a county in
30	30	which an action may be brought against the insured or insurer under
31	31	Chapter 15.
32	32	(c) A third party may bring an action under this chapter
33	33	against the insurer only if:
34	34	(1) the insured has received a discharge in bankruptcy
35	35	by a court of competent jurisdiction that is applicable to the third
36	36	party's claim or that evidences that the insured is unable to pay
37	37	the claim;
38	38	(2) at the time the third party brings the action,
39	39	bankruptcy proceedings are pending for the insured in a court of
40	40	competent jurisdiction;
41	41	(3) the insured is insolvent;
42	42	(4) service of citation or other process cannot be
43	43	made on the insured;
44	44	(5) the third party is a child, parent, or spouse of
45	45	the insured;
46	46	(6) the third party is seeking to recover under the
47	47	insured's uninsured or underinsured motorist coverage; or
48	48	(7) the insured is deceased.
49	49	(d) A third party may bring an action under this chapter
50	50	regardless of whether the insured's policy prohibits an action
51	51	under this chapter or is written or delivered outside of this state.
52	52	Sec. 100B.003. EFFECT ON INSURANCE POLICIES. (a) This
53	53	chapter may not be construed to affect the provisions of an
54	54	insurance policy if the provisions are not in violation of the laws
55	55	of this state.
56	56	(b) An action brought under this chapter is subject to the
57	57	lawful conditions of the applicable insurance policy and the
58	58	defenses which an insurer may raise.
59	59	SECTION 2. Subchapter A, Chapter 2301, Insurance Code, is
60	60	amended by adding Section 2301.011 to read as follows:
61	61	Sec. 2301.011. REQUIRED POLICY PROVISIONS. (a) An insurer
62	62	may not deliver or issue for delivery in this state a form for use in
63	63	writing liability insurance described by Section 2301.003 unless
64	64	the form contains the provisions described by this section.
65	65	(b) A form must contain a provision providing that the
66	66	insolvency or bankruptcy of the insured does not release the
67	67	insurer from the payment of damages for an injury or loss by a third
68	68	party for which the insurer is liable under the policy.
69	69	(c) A form must contain a provision providing that a
70	70	judgment against an insured from which a third party cannot collect
71	71	any damages is prima facie evidence of the insured's insolvency and
72	72	the third party may bring an action against the insurer within the
73	73	terms and limits of the policy against the insurer under Chapter
74	74	100B, Civil Practice and Remedies Code.
75	75	(d) A form must contain a provision providing that the
76	76	purpose of the policy includes:
77	77	(1) providing benefits to all injured third parties
78	78	and the third parties' survivors to whom the insured is liable; and
79	79	(2) providing protection and coverage to each person
80	80	insured under the policy, regardless of whether the person is a
81	81	named insured or an additional insured, for any legal liability the
82	82	person may incur under the terms and limits of the policy.
83	83	SECTION 3. The changes in law made by this Act apply only to
84	84	an insurance policy delivered, issued for delivery, or renewed on
85	85	or after the effective date of this Act. An insurance policy
86	86	delivered, issued for delivery, or renewed before the effective
87	87	date of this Act is governed by the law in effect immediately before
88	88	the effective date of this Act, and that law is continued in effect
89	89	for that purpose.
90	90	SECTION 4. This Act takes effect September 1, 2015.