84R10648 LED-F
By: Seliger S.B. No. 1227
A BILL TO BE ENTITLED
AN ACT
relating to payment of covered claims based on assignment.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 462.201, Insurance Code, is amended to
read as follows:
Sec. 462.201. COVERED CLAIMS IN GENERAL. A claim is a
covered claim if:
(1) the claim is an unpaid claim;
(2) the claim is made under an insurance policy to
which this chapter applies that is:
(A) issued by an insurer authorized to engage in
business in this state; or
(B) assumed by an insurer authorized to engage in
business in this state that issues an assumption certificate to the
insured;
(3) the claim arises out of the policy and is within
the coverage and applicable limits of the policy;
(4) the insurer that issued the policy or assumed the
policy under an assumption certificate issued to the insured is an
impaired insurer; and
(5) the claim:
(A) is made by a liability claimant or insured
who is a resident of this state at the time of the insured event;
[or]
(B) is a first-party claim for damage to property
that is permanently located in this state; or
(C) is made by a person holding a valid
assignment of a claim described by Paragraph (A) or (B) or Section
462.202.
SECTION 2. The change in law made by this Act applies only
to a claim under Chapter 462, Insurance Code, in relation to an
insurer that is designated as an impaired insurer on or after the
effective date of this Act. A claim under Chapter 462, Insurance
Code, in relation to an insurer that is designated as an impaired
insurer before the effective date of this Act 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 immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.