| 1 | 1 | | 84R9870 PMO-D |
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| 2 | 2 | | By: RodrÃguez S.B. No. 600 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to underinsured motorist coverage in personal automobile |
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| 8 | 8 | | insurance policies. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 1952.103 and 1952.106, Insurance Code, |
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| 11 | 11 | | are amended to read as follows: |
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| 12 | 12 | | Sec. 1952.103. UNDERINSURED MOTOR VEHICLE. For purposes of |
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| 13 | 13 | | the coverage required by this subchapter, "underinsured motor |
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| 14 | 14 | | vehicle" means an insured motor vehicle to which a liability |
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| 15 | 15 | | insurance policy applies if that policy's limit of liability: |
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| 16 | 16 | | (1) is insufficient to pay the full amount the person |
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| 17 | 17 | | covered by the underinsured motorist coverage is legally entitled |
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| 18 | 18 | | to recover as damages; or |
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| 19 | 19 | | (2) has been reduced by the payment of claims to an |
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| 20 | 20 | | amount that is insufficient to pay the full amount the person |
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| 21 | 21 | | covered by the underinsured motorist coverage is legally entitled |
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| 22 | 22 | | to recover as damages [on which there is collectible liability |
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| 23 | 23 | | insurance coverage with limits of liability for the owner or |
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| 24 | 24 | | operator that were originally lower than, or have been reduced by |
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| 25 | 25 | | payment of claims arising from the same accident to, an amount less |
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| 26 | 26 | | than the limit of liability stated in the underinsured coverage of |
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| 27 | 27 | | the insured's policy]. |
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| 28 | 28 | | Sec. 1952.106. RECOVERY UNDER UNDERINSURED MOTORIST |
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| 29 | 29 | | COVERAGE. Underinsured motorist coverage must provide for payment, |
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| 30 | 30 | | up to the underinsured motorist coverage limit, to the insured of |
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| 31 | 31 | | all amounts that the insured is legally entitled to recover as |
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| 32 | 32 | | damages from owners or operators of underinsured motor vehicles |
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| 33 | 33 | | because of bodily injury or property damage. Those damages may be[, |
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| 34 | 34 | | not to exceed the limit specified in the insurance policy, and] |
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| 35 | 35 | | reduced by the amount recovered or recoverable from the insurer of |
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| 36 | 36 | | the underinsured motor vehicle. |
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| 37 | 37 | | SECTION 2. This Act takes effect immediately if it receives |
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| 38 | 38 | | a vote of two-thirds of all the members elected to each house, as |
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| 39 | 39 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 40 | 40 | | Act does not receive the vote necessary for immediate effect, this |
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| 41 | 41 | | Act takes effect September 1, 2015. |
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