| 1 | 1 | | By: Coleman H.B. No. 3822 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to recovery under uninsured and underinsured motorist |
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| 7 | 7 | | insurance coverage. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter C, Chapter 1952, Insurance Code, is |
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| 10 | 10 | | amended by adding Sections 1952.1061, 1952.1062, and 1952.1063 to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 1952.1061. NOTICE OF CLAIM. A claimant provides |
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| 13 | 13 | | notice of a claim, including notice for the purposes of Subchapter |
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| 14 | 14 | | D, Chapter 541, and Subchapter B, Chapter 542, for uninsured or |
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| 15 | 15 | | underinsured motorist coverage by providing written notification |
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| 16 | 16 | | to the insurer that reasonably informs the insurer of the facts of |
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| 17 | 17 | | the claim. |
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| 18 | 18 | | Sec. 1952.1062. LEGAL DETERMINATION NOT PREREQUISITE TO |
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| 19 | 19 | | RECOVERY. (a) An insurer may not require as a prerequisite to |
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| 20 | 20 | | asserting a claim under uninsured or underinsured motorist coverage |
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| 21 | 21 | | a judgment or other legal determination establishing the other |
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| 22 | 22 | | motorist's liability or uninsured or underinsured status. A |
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| 23 | 23 | | judgment or other legal determination described by this subsection |
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| 24 | 24 | | is not a prerequisite to having a claim for the purposes of Chapters |
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| 25 | 25 | | 541 and 542. |
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| 26 | 26 | | (b) An insurer may not require as a prerequisite to payment |
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| 27 | 27 | | of benefits under uninsured or underinsured motorist coverage a |
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| 28 | 28 | | judgment or other legal determination establishing the other |
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| 29 | 29 | | motorist's liability or the extent of the insured's damages before |
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| 30 | 30 | | benefits are paid under the policy. |
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| 31 | 31 | | (c) An insurer must attempt in good faith to effectuate a |
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| 32 | 32 | | prompt, fair, and equitable settlement of a claim once liability |
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| 33 | 33 | | and damages have become reasonably clear. |
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| 34 | 34 | | Sec. 1952.1063. PREJUDGMENT INTEREST; ATTORNEY'S FEES. (a) |
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| 35 | 35 | | Prejudgment interest accrues on an uninsured or underinsured |
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| 36 | 36 | | motorist claim on the earlier of: |
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| 37 | 37 | | (1) the 180th day after the date the claimant notifies |
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| 38 | 38 | | the insurer of the claim in accordance with Section 1952.1061; or |
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| 39 | 39 | | (2) the date on which suit is filed against the insurer |
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| 40 | 40 | | to recover under the uninsured or underinsured motorist coverage. |
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| 41 | 41 | | (b) For the purposes of recovery of attorney's fees under |
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| 42 | 42 | | Section 38.002, Civil Practice and Remedies Code, a claim for |
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| 43 | 43 | | uninsured or underinsured motorist coverage is presented when the |
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| 44 | 44 | | insurer receives notice of the claim in accordance with Section |
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| 45 | 45 | | 1952.1061. |
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| 46 | 46 | | SECTION 2. (a) Except as provided by this section, the |
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| 47 | 47 | | change in law made by this Act applies only to a cause of action that |
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| 48 | 48 | | accrues on or after the effective date of this Act. A cause of |
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| 49 | 49 | | action that accrues before the effective date of this Act is |
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| 50 | 50 | | governed by the law in effect immediately before that date, and that |
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| 51 | 51 | | law is continued in effect for that purpose. |
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| 52 | 52 | | (b) The change in law made by this Act does not affect the |
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| 53 | 53 | | enforceability of any provision in an insurance policy delivered, |
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| 54 | 54 | | issued for delivery, or renewed before January 1, 2016, that |
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| 55 | 55 | | conflicts with the change in law made by this Act. |
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| 56 | 56 | | SECTION 3. This Act takes effect September 1, 2015. |
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