Texas 2015 - 84th Regular

Texas House Bill HB3787 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	84R3192 MEW-D
2	1		By: Bonnen of Galveston H.B. No. 3787
3	2
4	3
5	4		A BILL TO BE ENTITLED
6	5		AN ACT
7		-	relating to a claim filing period and contractual limitations
	6	+	relati
	7	+	ng to a claim filing period and contractual limitations
8	8		period in certain property insurance policies.
9	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10		SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is
11	11		amended by adding Section 2301.011 to read as follows:
12	12		Sec. 2301.011. CONTRACTUAL LIMITATIONS PERIOD AND CLAIM
13	13		FILING PERIOD IN CERTAIN RESIDENTIAL OR COMMERCIAL PROPERTY
14	14		INSURANCE FORMS. (a) Notwithstanding Section 16.070, Civil
15	15		Practice and Remedies Code, a policy form or printed endorsement
16	16		form for residential or commercial property insurance that is filed
17	17		by an insurer or adopted by the department under this subchapter may
18	18		provide for a contractual limitations period for filing suit on a
19	19		first-party claim under the policy. The contractual limitations
20	20		period may not end before the earlier of:
21	21		(1) two years from the date the insurer accepts or
22		-	rejects the claim; or
23		-	(2) three years from the date of the loss that is the
24		-	subject of the claim.
	22	+	rejects the claim if the insurer has notified the insured by
	23	+	certified mail, return receipt requested, that the insurer has
	24	+	accepted or rejected the claim and has notified the insured in
	25	+	writing that the insured must file suit on the claim within two
	26	+	years of the date the insurer accepted or rejected the claim; or
	27	+	(2) three years from the date that the insured
	28	+	discovered or, by the exercise of reasonable diligence, should have
	29	+	discovered that the insurer accepted or rejected the claim.
25	30		(b) A policy or endorsement described by Subsection (a) may
26	31		also contain a provision requiring that a claim be filed with the
27		-	insurer not later than one year after the date of the loss that is
28		-	the subject of the claim.
	32	+	insurer not later than two years after the date that the insured
	33	+	discovered or, by the exercise of reasonable diligence, should have
	34	+	discovered the loss that is the subject of the claim.
29	35		(c) A contractual provision contrary to Subsection (a) is
30	36		void. If a contractual provision is voided under this subsection,
31	37		the voiding of the provision does not affect the validity of other
32	38		provisions of a contract that may be given effect without the voided
33	39		provision to the extent those provisions are severable.
34	40		(d) An insurer using a policy form or endorsement form in
35	41		this state that includes a provision described by Subsection (a) or
36	42		(b) shall, at the time the policy or endorsement is issued or
37	43		renewed, disclose in writing to an applicant or insured the
38	44		contractual limitations or claims filing period, as applicable, in
39	45		the policy or endorsement.
40	46		SECTION 2. Section 2301.011, Insurance Code, as added by
41	47		this Act, applies only to an insurance policy that is delivered,
42	48		issued for delivery, or renewed on or after January 1, 2016. A
43	49		policy delivered, issued for delivery, or renewed before January 1,
44	50		2016, is governed by the law as it existed immediately before the
45	51		effective date of this Act, and that law is continued in effect for
46	52		that purpose.
47	53		SECTION 3. This Act takes effect September 1, 2015.