Texas 2015 - 84th Regular

Texas Senate Bill SB1246 Compare Versions

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

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1	1	84R9915 AJA-D
2	2	By: Taylor of Galveston S.B. No. 1246
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to dispute resolution for certain claims arising under
8	8	insurance policies issued by the Fair Access to Insurance
9	9	Requirements (FAIR) Plan Association; authorizing fees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2211.003, Insurance Code, is amended by
12	12	adding Subsection (c) to read as follows:
13	13	(c) Subsection (a) does not apply to a person who is
14	14	required to resolve a dispute under Subchapter D-1.
15	15	SECTION 2. Subchapter A, Chapter 2211, Insurance Code, is
16	16	amended by adding Sections 2211.004 and 2211.005 to read as
17	17	follows:
18	18	Sec. 2211.004. CERTAIN CONDUCT IN DISPUTE RESOLUTION
19	19	PROHIBITED. (a) For purposes of this section, "presiding officer"
20	20	includes a judge, mediator, arbitrator, appraiser, or panel member.
21	21	(b) If a person insured under this chapter is assigned to
22	22	act as presiding officer to preside over or resolve a dispute
23	23	involving the association and another person insured under this
24	24	chapter, the presiding officer shall, not later than the seventh
25	25	day after the date of assignment, give written notice to the
26	26	association and to each other party to the dispute, or the
27	27	association's or other party's attorney, that the presiding officer
28	28	is insured under this chapter.
29	29	(c) In a proceeding with respect to which the commissioner
30	30	has authority to designate the presiding officer, the association
31	31	or other party that receives notice under Subsection (b) may file
32	32	with the commissioner a written objection to the assignment of the
33	33	presiding officer to the dispute. The written objection must
34	34	contain the factual basis on which the association or other party
35	35	objects to the assignment.
36	36	(d) The commissioner shall assign a different presiding
37	37	officer to the dispute if, after reviewing the objection filed
38	38	under Subsection (c), the commissioner determines that the
39	39	presiding officer originally assigned to the dispute has a direct
40	40	financial or personal interest in the outcome of the dispute.
41	41	(e) The association or other party must file an objection
42	42	under Subsection (c) not later than the earlier of:
43	43	(1) the seventh day after the date the association or
44	44	other party receives actual notice that the presiding officer is
45	45	insured under this chapter; or
46	46	(2) the seventh day before the date of the first
47	47	proceeding concerning the dispute.
48	48	(f) The commissioner may, on a showing of good cause, extend
49	49	the deadline to file an objection under Subsection (e).
50	50	Sec. 2211.005. APPLICABILITY OF CERTAIN OTHER LAW. (a) A
51	51	person may not bring a private action against the association,
52	52	including a claim against an agent or representative of the
53	53	association, under Chapter 541 or 542. Notwithstanding any other
54	54	provision of this code or this chapter, a class action under
55	55	Subchapter F, Chapter 541, or under Rule 42, Texas Rules of Civil
56	56	Procedure, may be brought against the association only by the
57	57	attorney general at the request of the department.
58	58	(b) Chapter 542 does not apply to the processing and
59	59	settlement of claims by the association.
60	60	SECTION 3. Subchapter D, Chapter 2211, Insurance Code, is
61	61	amended by adding Sections 2211.158 and 2211.159 to read as
62	62	follows:
63	63	Sec. 2211.158. REQUIRED POLICY PROVISIONS: DEADLINE FOR
64	64	FILING CLAIM; NOTICE CONCERNING RESOLUTION OF CERTAIN DISPUTES.
65	65	(a) An insurance policy issued by the association must:
66	66	(1) require an insured to file a claim under the policy
67	67	not later than the first anniversary of the date on which the damage
68	68	to property that is the basis of the claim occurs; and
69	69	(2) contain, in boldface type, a conspicuous notice
70	70	concerning the resolution of disputes under the policy, including:
71	71	(A) the processes and deadlines for appraisal
72	72	under Section 2211.174 and alternative dispute resolution under
73	73	Section 2211.175;
74	74	(B) the binding effect of appraisal under Section
75	75	2211.174; and
76	76	(C) the necessity of complying with the
77	77	requirements of Subchapter D-1 to seek relief, including judicial
78	78	relief.
79	79	(b) The commissioner, on a showing of good cause by a person
80	80	insured under this chapter, may extend the one-year period
81	81	described by Subsection (a)(1) for a period not to exceed 180 days.
82	82	Sec. 2211.159. VOLUNTARY ARBITRATION OF CERTAIN COVERAGE
83	83	AND CLAIM DISPUTES. (a) A person insured under this chapter may
84	84	elect to purchase a binding arbitration endorsement in a form
85	85	prescribed by the commissioner. A person who elects to purchase an
86	86	endorsement under this section must arbitrate a dispute involving
87	87	an act, ruling, or decision of the association relating to the
88	88	payment of, the amount of, or the denial of the claim.
89	89	(b) An arbitration under this section shall be conducted in
90	90	the manner and under rules and deadlines prescribed by the
91	91	commissioner by rule.
92	92	(c) The association may offer a person insured under this
93	93	chapter an actuarially justified premium discount on a policy
94	94	issued by the association if the person elects to purchase a binding
95	95	arbitration endorsement under this section. The premium discount
96	96	may not exceed 10 percent of the premium for the policy, before the
97	97	application of the discount.
98	98	(d) The commissioner shall adopt rules necessary to
99	99	implement and enforce this section, including rules defining
100	100	"actuarially justified" for the purposes of this section.
101	101	SECTION 4. Chapter 2211, Insurance Code, is amended by
102	102	adding Subchapter D-1 to read as follows:
103	103	SUBCHAPTER D-1. CLAIMS: SETTLEMENT AND DISPUTE RESOLUTION
104	104	Sec. 2211.171. DEFINITIONS. In this subchapter:
105	105	(1) "Association policy" means an insurance policy
106	106	issued by the association.
107	107	(2) "Claim" means a request for payment under an
108	108	association policy. The term also includes any other claim against
109	109	the association, or an agent or representative of the association,
110	110	relating to an insured loss, under any theory or cause of action of
111	111	any kind, regardless of the theory under which the claim is
112	112	asserted, the cause of action brought, or the type of damages
113	113	sought.
114	114	(3) "Claimant" means a person who makes a claim.
115	115	Sec. 2211.172. EXCLUSIVE REMEDIES AND LIMITATION ON AWARD.
116	116	(a) This subchapter provides the exclusive remedies for a claim
117	117	against the association, including an agent or representative of
118	118	the association.
119	119	(b) Subject to Section 2211.176, the association may not be
120	120	held liable for any amount other than covered losses payable under
121	121	the terms of the association policy.
122	122	(c) The association, or an agent or representative of the
123	123	association, may not be held liable for damages under Chapter 17,
124	124	Business & Commerce Code, or, except as otherwise specifically
125	125	provided by this chapter, under any provision of any law providing
126	126	for additional damages, exemplary damages, or a penalty.
127	127	Sec. 2211.173. FILING OF CLAIM; CLAIM PROCESSING. (a)
128	128	Subject to Section 2211.158(b), an insured must file a claim under
129	129	an association policy not later than the first anniversary of the
130	130	date on which the damage to property that is the basis of the claim
131	131	occurs.
132	132	(b) The claimant may submit written materials, comments,
133	133	documents, records, and other information to the association
134	134	relating to the claim. If the claimant fails to submit information
135	135	in the claimant's possession that is necessary for the association
136	136	to determine whether to accept or reject a claim, the association
137	137	may, not later than the 30th day after the date the claim is filed,
138	138	request in writing the necessary information from the claimant.
139	139	(c) The association shall, on request, provide a claimant
140	140	reasonable access to all information relevant to the determination
141	141	of the association concerning the claim. The claimant may copy the
142	142	information at the claimant's own cost or may request the
143	143	association to provide a copy of all or part of the information to
144	144	the claimant. The association may charge a claimant the actual cost
145	145	incurred by the association in providing a copy of information
146	146	under this section, excluding any amount for labor involved in
147	147	making any information or copy of information available to a
148	148	claimant.
149	149	(d) Unless the applicable 60-day period described by this
150	150	subsection is extended by the commissioner under Section 2211.180,
151	151	not later than the later of the 60th day after the date the
152	152	association receives a claim or the 60th day after the date the
153	153	association receives information requested under Subsection (b),
154	154	the association shall provide the claimant, in writing,
155	155	notification that:
156	156	(1) the association has accepted coverage for the
157	157	claim in full;
158	158	(2) the association has accepted coverage for the
159	159	claim in part and has denied coverage for the claim in part; or
160	160	(3) the association has denied coverage for the claim
161	161	in full.
162	162	(e) In a notice provided under Subsection (d)(1), the
163	163	association must inform the claimant of the amount of loss the
164	164	association will pay and of the time limit to demand appraisal under
165	165	Section 2211.174.
166	166	(f) In a notice provided under Subsection (d)(2) or (3), the
167	167	association must inform the claimant of, as applicable:
168	168	(1) the portion of the loss for which the association
169	169	accepts coverage and the amount of loss the association will pay;
170	170	(2) the portion of the loss for which the association
171	171	denies coverage and a detailed summary of the manner in which the
172	172	association determined not to accept coverage for that portion of
173	173	the claim; and
174	174	(3) the time limit to:
175	175	(A) demand appraisal under Section 2211.174 of
176	176	the portion of the loss for which the association accepts coverage;
177	177	and
178	178	(B) provide notice of intent to bring an action
179	179	as required by Section 2211.175.
180	180	(g) In addition to a notice provided under Subsection (d)(2)
181	181	or (3), the association shall provide a claimant with a form on
182	182	which the claimant may provide the association notice of intent to
183	183	bring an action as required by Section 2211.175.
184	184	Sec. 2211.1731. PAYMENT OF CLAIM. (a) Except as provided
185	185	by Subsection (b), if the association notifies a claimant under
186	186	Section 2211.173(d)(1) or (2) that the association has accepted
187	187	coverage for a claim in full or has accepted coverage for a claim in
188	188	part, the association shall pay the accepted claim or accepted
189	189	portion of the claim not later than the 10th day after the date
190	190	notice is made.
191	191	(b) If payment of the accepted claim or accepted portion of
192	192	the claim is conditioned on the performance of an act by the
193	193	claimant, the association shall pay the claim not later than the
194	194	10th day after the date the act is performed.
195	195	Sec. 2211.174. DISPUTES CONCERNING AMOUNT OF ACCEPTED
196	196	COVERAGE. (a) If the association accepts coverage for a claim in
197	197	full and a claimant disputes only the amount of loss the association
198	198	will pay for the claim, or if the association accepts coverage for a
199	199	claim in part and a claimant disputes the amount of loss the
200	200	association will pay for the accepted portion of the claim, the
201	201	claimant may request from the association a detailed summary of the
202	202	manner in which the association determined the amount of loss the
203	203	association will pay.
204	204	(b) If a claimant disputes the amount of loss the
205	205	association will pay for a claim or a portion of a claim, the
206	206	claimant, not later than the 60th day after the date the claimant
207	207	receives the notice described by Section 2211.173(d)(1) or (2), may
208	208	demand appraisal in accordance with the terms of the association
209	209	policy.
210	210	(c) If a claimant, on a showing of good cause and not later
211	211	than the 15th day after the expiration of the 60-day period
212	212	described by Subsection (b), requests in writing that the 60-day
213	213	period be extended, the association may grant an additional 30-day
214	214	period in which the claimant may demand appraisal.
215	215	(d) If a claimant demands appraisal under this section:
216	216	(1) the appraisal must be conducted as provided by the
217	217	association policy; and
218	218	(2) the claimant and the association are responsible
219	219	in equal shares for paying any costs incurred or charged in
220	220	connection with the appraisal, including a fee charged under
221	221	Subsection (e).
222	222	(e) If a claimant demands appraisal under this section and
223	223	the appraiser retained by the claimant and the appraiser retained
224	224	by the association are able to agree on an appraisal umpire to
225	225	participate in the resolution of the dispute, the appraisal umpire
226	226	is the umpire chosen by the two appraisers. If the appraiser
227	227	retained by the claimant and the appraiser retained by the
228	228	association are unable to agree on an appraisal umpire to
229	229	participate in the resolution of the dispute, the commissioner
230	230	shall select an appraisal umpire from a roster of qualified umpires
231	231	maintained by the department. The department may:
232	232	(1) require appraisers to register with the department
233	233	as a condition of being placed on the roster; and
234	234	(2) charge a reasonable registration fee to defray the
235	235	cost incurred by the department in maintaining the roster and the
236	236	commissioner in selecting an appraisal umpire under this
237	237	subsection.
238	238	(f) Except as provided by Subsection (g), the appraisal
239	239	decision is binding on the claimant and the association as to the
240	240	amount of loss the association will pay for a fully accepted claim
241	241	or the accepted portion of a partially accepted claim and is not
242	242	appealable or otherwise reviewable. A claimant that does not
243	243	demand appraisal before the expiration of the periods described by
244	244	Subsections (b) and (c) waives the claimant's right to contest the
245	245	association's determination of the amount of loss the association
246	246	will pay with reference to a fully accepted claim or the accepted
247	247	portion of a partially accepted claim.
248	248	(g) A claimant or the association may, not later than the
249	249	second anniversary of the date of an appraisal decision, file an
250	250	action in a district court in the county in which the loss that is
251	251	the subject of the appraisal occurred to vacate the appraisal
252	252	decision and begin a new appraisal process if:
253	253	(1) the appraisal decision was obtained by corruption,
254	254	fraud, or other undue means;
255	255	(2) the rights of the claimant or the association were
256	256	prejudiced by:
257	257	(A) evident partiality by an appraisal umpire;
258	258	(B) corruption in an appraiser or appraisal
259	259	umpire; or
260	260	(C) misconduct or wilful misbehavior of an
261	261	appraiser or appraisal umpire; or
262	262	(3) an appraiser or appraisal umpire:
263	263	(A) exceeded the appraiser's or appraisal
264	264	umpire's powers;
265	265	(B) refused to postpone the appraisal after a
266	266	showing of sufficient cause for the postponement;
267	267	(C) refused to consider evidence material to the
268	268	claim; or
269	269	(D) conducted the appraisal in a manner that
270	270	substantially prejudiced the rights of the claimant or the
271	271	association.
272	272	(h) Except as provided by Subsection (g), a claimant may not
273	273	bring an action against the association with reference to a claim
274	274	for which the association has accepted coverage in full.
275	275	Sec. 2211.175. DISPUTES CONCERNING DENIED COVERAGE. (a)
276	276	If the association denies coverage for a claim in part or in full
277	277	and the claimant disputes that determination, the claimant, not
278	278	later than the expiration of the limitations period described by
279	279	Section 2211.177(a) but after the date the claimant receives the
280	280	notice described by Section 2211.173(d)(2) or (3), must provide the
281	281	association with notice that the claimant intends to bring an
282	282	action against the association concerning the partial or full
283	283	denial of the claim. A claimant that does not provide notice of
284	284	intent to bring an action before the expiration of the period
285	285	described by this subsection waives the claimant's right to contest
286	286	the association's partial or full denial of coverage and is barred
287	287	from bringing an action against the association concerning the
288	288	denial of coverage.
289	289	(b) If a claimant provides notice of intent to bring an
290	290	action under Subsection (a), the association may require the
291	291	claimant, as a prerequisite to filing the action against the
292	292	association, to submit the dispute to alternative dispute
293	293	resolution by mediation or moderated settlement conference, as
294	294	provided by Chapter 154, Civil Practice and Remedies Code.
295	295	(c) The association must request alternative dispute
296	296	resolution of a dispute described by Subsection (b) not later than
297	297	the 60th day after the date the association receives from the
298	298	claimant notice of intent to bring an action.
299	299	(d) Alternative dispute resolution under this section must
300	300	be completed not later than the 60th day after the date a request
301	301	for alternative dispute resolution is made under Subsection (c).
302	302	The 60-day period described by this subsection may be extended by
303	303	the commissioner in accordance with Section 2211.180 or by the
304	304	association and a claimant by mutual consent.
305	305	(e) If the claimant is not satisfied after completion of
306	306	alternative dispute resolution, or if alternative dispute
307	307	resolution is not completed before the expiration of the 60-day
308	308	period described by Subsection (d) or any extension under that
309	309	subsection, the claimant may bring an action against the
310	310	association in a district court in the county in which the loss that
311	311	is the subject of the coverage denial occurred. An action brought
312	312	under this subsection shall be presided over by a judge appointed by
313	313	the judicial panel on multidistrict litigation designated under
314	314	Section 74.161, Government Code. A judge appointed under this
315	315	section must be an active judge, as defined by Section 74.041,
316	316	Government Code, who is a resident of the county in which the loss
317	317	that is the basis of the disputed denied coverage occurred or of a
318	318	county adjacent to the county in which that loss occurred.
319	319	(f) If a claimant brings an action against the association
320	320	concerning a partial or full denial of coverage, the court shall
321	321	abate the action until the notice of intent to bring an action has
322	322	been provided and, if requested by the association, the dispute has
323	323	been submitted to alternative dispute resolution, in accordance
324	324	with this section.
325	325	(g) A moderated settlement conference under this section
326	326	may be conducted by a panel consisting of one or more impartial
327	327	third parties.
328	328	(h) If the association requests mediation under this
329	329	section, the claimant and the association are responsible in equal
330	330	shares for paying any costs incurred or charged in connection with
331	331	the mediation.
332	332	(i) If the association requests mediation under this
333	333	section, and the claimant and the association are able to agree on a
334	334	mediator, the mediator is the mediator agreed to by the claimant and
335	335	the association. If the claimant and the association are unable to
336	336	agree on a mediator, the commissioner shall select a mediator from a
337	337	roster of qualified mediators maintained by the department. The
338	338	department may:
339	339	(1) require mediators to register with the department
340	340	as a condition of being placed on the roster; and
341	341	(2) charge a reasonable registration fee to defray the
342	342	cost incurred by the department in maintaining the roster and the
343	343	commissioner in selecting a mediator under this subsection.
344	344	(j) The commissioner shall establish rules to implement
345	345	this section, including provisions for expediting alternative
346	346	dispute resolution, facilitating the ability of a claimant to
347	347	appear with or without counsel, establishing qualifications
348	348	necessary for mediators to be placed on the roster maintained by the
349	349	department under Subsection (i), and providing that formal rules of
350	350	evidence shall not apply to the proceedings.
351	351	Sec. 2211.176. ISSUES BROUGHT TO SUIT; LIMITATIONS ON
352	352	RECOVERY. (a) The only issues a claimant may raise in an action
353	353	brought against the association under Section 2211.175 are:
354	354	(1) whether the association's denial of coverage was
355	355	proper; and
356	356	(2) the amount of the damages described by Subsection
357	357	(b) to which the claimant is entitled, if any.
358	358	(b) Except as provided by Subsections (c) and (d), a
359	359	claimant that brings an action against the association under
360	360	Section 2211.175 may recover only:
361	361	(1) the covered loss payable under the terms of the
362	362	association policy less, if applicable, the amount of loss already
363	363	paid by the association for any portion of a covered loss for which
364	364	the association accepted coverage;
365	365	(2) prejudgment interest from the first day after the
366	366	date specified in Section 2211.1731 by which the association was or
367	367	would have been required to pay an accepted claim or the accepted
368	368	portion of a claim, at the prejudgment interest rate provided by
369	369	Subchapter B, Chapter 304, Finance Code; and
370	370	(3) court costs and reasonable and necessary
371	371	attorney's fees.
372	372	(c) Nothing in this chapter, including Subsection (b), may
373	373	be construed to limit the consequential damages, or the amount of
374	374	consequential damages, that a claimant may recover under common law
375	375	in an action against the association.
376	376	(d) A claimant that brings an action against the association
377	377	under Section 2211.175 may, in addition to the covered loss
378	378	described by Subsection (b)(1) and any consequential damages
379	379	recovered by the claimant under common law, recover damages in an
380	380	amount not to exceed the aggregated amount of the covered loss
381	381	described by Subsection (b)(1) and the consequential damages
382	382	recovered under common law if the claimant proves by clear and
383	383	convincing evidence that the association mishandled the claimant's
384	384	claim to the claimant's detriment by intentionally:
385	385	(1) failing to meet the deadlines or timelines
386	386	established under this subchapter without good cause, including the
387	387	applicable deadline established under Section 2211.1731 for
388	388	payment of an accepted claim or the accepted portion of a claim;
389	389	(2) failing to provide the notice required under
390	390	Section 2211.173(d);
391	391	(3) rejecting a claim without conducting a reasonable
392	392	investigation with respect to the claim; or
393	393	(4) denying coverage for a claim in part or in full if
394	394	the association's liability has become reasonably clear as a result
395	395	of the association's investigation with respect to the portion of
396	396	the claim that was denied.
397	397	(e) For purposes of Subsection (d), "intentionally" means
398	398	actual awareness of the facts surrounding the act or practice
399	399	listed in Subsection (d)(1), (2), (3), or (4), coupled with the
400	400	specific intent that the claimant suffer harm or damages as a result
401	401	of the act or practice. Specific intent may be inferred from
402	402	objective manifestations that the association acted intentionally
403	403	or from facts that show that the association acted with flagrant
404	404	disregard of the duty to avoid the acts or practices listed in
405	405	Subsection (d)(1), (2), (3), or (4).
406	406	Sec. 2211.177. LIMITATIONS PERIOD. (a) Notwithstanding
407	407	any other law, a claimant that brings an action against the
408	408	association under Section 2211.175 must bring the action not later
409	409	than the second anniversary of the date on which the person receives
410	410	a notice described by Section 2211.173(d)(2) or (3).
411	411	(b) This section is a statute of repose and controls over
412	412	any other applicable limitations period.
413	413	Sec. 2211.178. CONSTRUCTION WITH OTHER LAW. (a) To the
414	414	extent of any conflict between a provision of this subchapter and
415	415	any other law, the provision of this subchapter prevails.
416	416	(b) Notwithstanding any other law, the association may not
417	417	bring an action against a claimant, for declaratory or other
418	418	relief, before the 180th day after the date an appraisal under
419	419	Section 2211.174, or alternative dispute resolution under Section
420	420	2211.175, is completed.
421	421	Sec. 2211.179. RULEMAKING. (a) The commissioner shall
422	422	adopt rules regarding the provisions of this subchapter, including
423	423	rules concerning:
424	424	(1) qualifications and selection of appraisers for the
425	425	appraisal procedure and mediators for the mediation process;
426	426	(2) procedures and deadlines for the payment and
427	427	handling of claims by the association as well as the procedures and
428	428	deadlines for a review of a claim by the association; and
429	429	(3) any other matters regarding the handling of claims
430	430	that are not inconsistent with this subchapter.
431	431	(b) All rules adopted by the commissioner under this section
432	432	must promote the fairness of the process, protect the rights of
433	433	aggrieved policyholders, and ensure that policyholders may
434	434	participate in the claims review process without the necessity of
435	435	engaging legal counsel.
436	436	Sec. 2211.180. COMMISSIONER EXTENSION OF DEADLINES. (a)
437	437	The commissioner, on a showing of good cause, may extend any
438	438	deadline established under this subchapter.
439	439	(b) For the purposes of Subsection (a), "good cause"
440	440	includes military deployment.
441	441	Sec. 2211.181. OMBUDSMAN PROGRAM. (a) The department
442	442	shall establish an ombudsman program to provide information and
443	443	educational programs to assist persons insured under this chapter
444	444	with the claim processes under this subchapter.
445	445	(b) Not later than March 1 of each year, the department
446	446	shall prepare and submit to the commissioner a budget for the
447	447	ombudsman program, including approval of all expenditures incurred
448	448	in administering and operating the program. The commissioner shall
449	449	adopt or modify and adopt the budget not later than April 1 of the
450	450	year in which the budget is submitted.
451	451	(c) Not later than May 1 of each year, the association shall
452	452	transfer to the ombudsman program money in an amount equal to the
453	453	amount of the budget adopted under Subsection (b). The ombudsman
454	454	program, not later than April 30 of each year, shall return to the
455	455	association any unexpended funds that the program received from the
456	456	association in the previous year.
457	457	(d) The department shall, not later than the 60th day after
458	458	the date of a catastrophic event, as defined by the commissioner for
459	459	the purposes of this subsection, prepare and submit an amended
460	460	budget to the commissioner for approval and report to the
461	461	commissioner the approximate number of claimants eligible for
462	462	ombudsman services. The commissioner shall adopt rules as
463	463	necessary to implement an amended budget submitted under this
464	464	section, including rules regarding the transfer of additional money
465	465	from the association to the program.
466	466	(e) The ombudsman program may provide to persons insured
467	467	under this chapter information and educational programs through:
468	468	(1) informational materials;
469	469	(2) toll-free telephone numbers;
470	470	(3) public meetings;
471	471	(4) outreach centers;
472	472	(5) the Internet; and
473	473	(6) other reasonable means.
474	474	(f) The ombudsman program is administratively attached to
475	475	the department. The department shall provide the staff, services,
476	476	and facilities necessary for the ombudsman program to operate,
477	477	including:
478	478	(1) administrative assistance and service, including
479	479	budget planning and purchasing;
480	480	(2) personnel services;
481	481	(3) office space; and
482	482	(4) computer equipment and support.
483	483	(g) The ombudsman program shall prepare and make available
484	484	to each person insured under this chapter information describing
485	485	the functions of the ombudsman program.
486	486	(h) The association, in the manner prescribed by the
487	487	commissioner by rule, shall notify each person insured under this
488	488	chapter concerning the operation of the ombudsman program.
489	489	(i) The commissioner may adopt rules as necessary to
490	490	implement this section.
491	491	SECTION 5. (a) Except as otherwise specifically provided
492	492	by this section, this Act applies only to an insurance policy that
493	493	is delivered, issued for delivery, or renewed by the Fair Access to
494	494	Insurance Requirements Plan Association on or after the 60th day
495	495	after the effective date of this Act. An insurance policy that is
496	496	delivered, issued for delivery, or renewed by the Fair Access to
497	497	Insurance Requirements Plan Association before the 60th day after
498	498	the effective date of this Act is governed by the law as it existed
499	499	immediately before the effective date of this Act, and the former
500	500	law is continued in effect for that purpose.
501	501	(b) The deadline to file a claim under an insurance policy
502	502	delivered, issued for delivery, or renewed before the 60th day
503	503	after the effective date of this Act by the Fair Access to Insurance
504	504	Requirements Plan Association is governed by the law applicable to
505	505	the claim immediately before the effective date of this Act, and
506	506	that law is continued in effect for that purpose.
507	507	(c) If a person insured by the Fair Access to Insurance
508	508	Requirements Plan Association disputes the amount the association
509	509	will pay for a partially or fully accepted claim filed by the
510	510	person, Section 2211.174, Insurance Code, as added by this Act,
511	511	applies only if the insurance policy under which the claim is filed
512	512	is delivered, issued for delivery, or renewed on or after the 60th
513	513	day after the effective date of this Act.
514	514	(d) If a person insured by the Fair Access to Insurance
515	515	Requirements Plan Association disputes the amount the association
516	516	will pay for a partially or fully accepted claim filed by the person
517	517	and the insurance policy under which the claim is filed is
518	518	delivered, issued for delivery, or renewed before the 60th day
519	519	after the effective date of this Act:
520	520	(1) Section 2211.174, Insurance Code, as added by this
521	521	Act, does not apply to the resolution of the dispute; and
522	522	(2) notwithstanding any other provision of this Act,
523	523	the claimant must attempt to resolve the dispute through any
524	524	appraisal process contained in the association policy under which
525	525	the claim is filed before an action may be brought against the Fair
526	526	Access to Insurance Requirements Plan Association concerning the
527	527	claim.
528	528	(e) The person insured by the Fair Access to Insurance
529	529	Requirements Plan Association and the association may agree that an
530	530	appraisal conducted under Subsection (d)(2) of this section is
531	531	binding on the parties.
532	532	(f) An action brought against the association concerning a
533	533	claim described by Subsection (d) of this section shall be abated
534	534	until the appraisal process under Subsection (d)(2) of this section
535	535	is completed.
536	536	(g) Notwithstanding Sections 2211.175 and 2211.176,
537	537	Insurance Code, as added by this Act, Subsection (b) of this
538	538	section, or any other provision of this Act, Sections 2211.176(b),
539	539	(c), (d), and (e), Insurance Code, apply to any cause of action that
540	540	accrues against the Fair Access to Insurance Requirements Plan
541	541	Association on or after the effective date of this Act and the basis
542	542	of which is a claim filed under an insurance policy that is
543	543	delivered, issued for delivery, or renewed by the association,
544	544	regardless of the date on which the policy was delivered, issued for
545	545	delivery, or renewed.
546	546	SECTION 6. This Act takes effect immediately if it receives
547	547	a vote of two-thirds of all the members elected to each house, as
548	548	provided by Section 39, Article III, Texas Constitution. If this
549	549	Act does not receive the vote necessary for immediate effect, this
550	550	Act takes effect September 1, 2015.