Texas 2015 - 84th Regular

Texas House Bill HB3563 Compare Versions

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

Old	New	Differences
1	1	By: Hughes H.B. No. 3563
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to settlement practices of insurers and prohibited conduct
7	7	by insurance adjusters and public insurance adjusters.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 541.060 is amended by adding Subsection
10	10	(a-10) to read as follows:
11	11	Sec. 541.060. UNFAIR SETTLEMENT PRACTICES. (a) It is an
12	12	unfair method of competition or an unfair or deceptive act or
13	13	practice in the business of insurance to engage in the following
14	14	unfair settlement practices with respect to a claim by an insured or
15	15	beneficiary:
16	16	(1) misrepresenting to a claimant a material fact or
17	17	policy provision relating to coverage at issue;
18	18	(2) failing to attempt in good faith to effectuate a
19	19	prompt, fair, and equitable settlement of:
20	20	(A) a claim with respect to which the insurer's
21	21	liability has become reasonably clear; or
22	22	(B) a claim under one portion of a policy with
23	23	respect to which the insurer's liability has become reasonably
24	24	clear to influence the claimant to settle another claim under
25	25	another portion of the coverage unless payment under one portion of
26	26	the coverage constitutes evidence of liability under another
27	27	portion;
28	28	(3) failing to promptly provide to a policyholder a
29	29	reasonable explanation of the basis in the policy, in relation to
30	30	the facts or applicable law, for the insurer's denial of a claim or
31	31	offer of a compromise settlement of a claim;
32	32	(4) failing within a reasonable time to:
33	33	(A) affirm or deny coverage of a claim to a
34	34	policyholder; or
35	35	(B) submit a reservation of rights to a
36	36	policyholder;
37	37	(5) refusing, failing, or unreasonably delaying a
38	38	settlement offer under applicable first-party coverage on the basis
39	39	that other coverage may be available or that third parties are
40	40	responsible for the damages suffered, except as may be specifically
41	41	provided in the policy;
42	42	(6) undertaking to enforce a full and final release of
43	43	a claim from a policyholder when only a partial payment has been
44	44	made, unless the payment is a compromise settlement of a doubtful or
45	45	disputed claim;
46	46	(7) refusing to pay a claim without conducting a
47	47	reasonable investigation with respect to the claim;
48	48	(8) with respect to a Texas personal automobile
49	49	insurance policy, delaying or refusing settlement of a claim solely
50	50	because there is other insurance of a different kind available to
51	51	satisfy all or part of the loss forming the basis of that claim; or
52	52	(9) requiring a claimant as a condition of settling a
53	53	claim to produce the claimant's federal income tax returns for
54	54	examination or investigation by the person unless:
55	55	(A) a court orders the claimant to produce those
56	56	tax returns;
57	57	(B) the claim involves a fire loss; or
58	58	(C) the claim involves lost profits or income.
59	59	(10) altering, or causing to be altered, an inspection
60	60	report of damages to minimize the payment of a claim or part of a
61	61	claim.
62	62	SECTION 2. Section 542.102 is amended to read as follows:
63	63	Sec. 542.102. REQUEST BY POLICYHOLDER UNDER PROPERTY AND
64	64	CASUALTY INSURANCE POLICY. (a) On written request of a
65	65	policyholder, an insurer that writes property and casualty
66	66	insurance in this state shall provide the policyholder with a list
67	67	of claims charged against the policy, [and] payments made on each
68	68	claim, and information relating to the disposition of each claim
69	69	filed under the policy. The information must include:
70	70	(1) details relating to:
71	71	(A) the amount paid on each claim;
72	72	(B) settlement of each claim; or
73	73	(C) judgment on each claim;
74	74	(3) details as to how the claim, settlement, or
75	75	judgment is to be paid;
76	76	(4) details regarding whether a business entity or
77	77	insurance adjuster altered the report of an engineer or other
78	78	person employed to furnish technical assistance to a licensed
79	79	adjuster and explanation of all alterations; and
80	80	(5) any other information required by rule of the
81	81	commissioner that the commissioner considers necessary to
82	82	adequately inform an insured with regard to any claim under a
83	83	property and casualty insurance policy.
84	84	SECTION 3. Subchapter F, Chapter 4101, Insurance Code, is
85	85	amended by adding Section 4101.252 to read as follows:
86	86	Sec. 4101.252. CERTAIN ALTERATIONS OF TECHNICAL REPORTS
87	87	PROHIBITED. (a) A business entity or insurance adjuster licensed
88	88	under this chapter may not alter an inspection report of damages to
89	89	minimize the payment of a claim or part of a claim.
90	90	(b) A business entity or insurance adjuster licensed under
91	91	this chapter may not alter the report of an engineer or other person
92	92	employed to furnish technical assistance to a licensed adjuster
93	93	without providing written notice and explanation of all alterations
94	94	to the insured or claimant.
95	95	(c) The commissioner shall adopt rules necessary to
96	96	implement and enforce this section.
97	97	SECTION 4. Subchapter D, Chapter 4102, Insurance Code, is
98	98	amended by adding Section 4102.164 to read as follows:
99	99	Sec. 4102.164. CERTAIN ALTERATIONS OF TECHNICAL REPORTS
100	100	PROHIBITED. (a) A business entity or insurance adjuster licensed
101	101	under this chapter may not alter an inspection report of damages to
102	102	minimize the payment of a claim or part of a claim.
103	103	(b) A business entity or insurance adjuster licensed under
104	104	this chapter may not alter the report of an engineer or other person
105	105	employed to furnish technical assistance to a licensed adjuster
106	106	without providing written notice and explanation of all alterations
107	107	to the insured or claimant.
108	108	(c) The commissioner shall adopt rules necessary to
109	109	implement and enforce this section.
110	110	SECTION 5. The change in law made by this Act applies only
111	111	to a cause of action that accrues on or after the effective date of
112	112	this Act. A cause of action that accrues before the effective date
113	113	of this Act is governed by the law applicable to the cause of action
114	114	immediately before the effective date of this Act, and that law is
115	115	continued in effect for that purpose.
116	116	SECTION 6. This Act takes effect immediately if it receives
117	117	a vote of two-thirds of all the members elected to each house, as
118	118	provided by Section 39, Article III, Texas Constitution. If this
119	119	Act does not receive the vote necessary for immediate effect, this
120	120	Act takes effect September 1, 2015.