By: Bonnen of Galveston H.B. No. 3787
A BILL TO BE ENTITLED
AN ACT
relati
ng 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) Notwithstanding Section 16.070, Civil
Practice and Remedies Code, 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 accepts or
rejects the claim if the insurer has notified the insured by
certified mail, return receipt requested, that the insurer has
accepted or rejected the claim and has notified the insured in
writing that the insured must file suit on the claim within two
years of the date the insurer accepted or rejected the claim; or
(2) three years from the date that the insured
discovered or, by the exercise of reasonable diligence, should have
discovered that the insurer accepted or rejected the claim.
(b) A policy or endorsement described by Subsection (a) may
also contain a provision requiring that a claim be filed with the
insurer not later than two years after the date that the insured
discovered or, by the exercise of reasonable diligence, should have
discovered the loss that is the subject of the claim.
(c) A contractual provision contrary to Subsection (a) is
void. If a contractual provision is voided under this subsection,
the voiding of the provision 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.
(d) An insurer using a policy form or endorsement form in
this state that includes a provision described by Subsection (a) or
(b) shall, at the time the policy or endorsement is issued or
renewed, disclose in writing to an applicant or insured the
contractual limitations or claims filing period, as applicable, in
the policy or endorsement.
SECTION 2. 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, 2016. A
policy delivered, issued for delivery, or renewed before January 1,
2016, 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 3. This Act takes effect September 1, 2015.