84R9870 PMO-D
By: RodrÃguez S.B. No. 600
A BILL TO BE ENTITLED
AN ACT
relating to underinsured motorist coverage in personal automobile
insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1952.103 and 1952.106, Insurance Code,
are amended to read as follows:
Sec. 1952.103. UNDERINSURED MOTOR VEHICLE. For purposes of
the coverage required by this subchapter, "underinsured motor
vehicle" means an insured motor vehicle to which a liability
insurance policy applies if that policy's limit of liability:
(1) is insufficient to pay the full amount the person
covered by the underinsured motorist coverage is legally entitled
to recover as damages; or
(2) has been reduced by the payment of claims to an
amount that is insufficient to pay the full amount the person
covered by the underinsured motorist coverage is legally entitled
to recover as damages [on which there is collectible liability
insurance coverage with limits of liability for the owner or
operator that were originally lower than, or have been reduced by
payment of claims arising from the same accident to, an amount less
than the limit of liability stated in the underinsured coverage of
the insured's policy].
Sec. 1952.106. RECOVERY UNDER UNDERINSURED MOTORIST
COVERAGE. Underinsured motorist coverage must provide for payment,
up to the underinsured motorist coverage limit, to the insured of
all amounts that the insured is legally entitled to recover as
damages from owners or operators of underinsured motor vehicles
because of bodily injury or property damage. Those damages may be[,
not to exceed the limit specified in the insurance policy, and]
reduced by the amount recovered or recoverable from the insurer of
the underinsured motor vehicle.
SECTION 2. 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.