| 1 | 1 | | 85R10721 LED-D |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 2394 |
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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 the award of damages in certain civil actions against |
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| 8 | 8 | | certain entities regulated under the Insurance Code. |
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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. Title 5, Insurance Code, is amended by adding |
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| 11 | 11 | | Subtitle H to read as follows: |
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| 12 | 12 | | SUBTITLE H. CIVIL ACTIONS AGAINST REGULATED ENTITIES |
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| 13 | 13 | | CHAPTER 761. DAMAGES IN CERTAIN CIVIL ACTIONS |
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| 14 | 14 | | Sec. 761.001. APPLICABILITY OF CHAPTER. This chapter |
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| 15 | 15 | | applies to each entity regulated by the commissioner, including an |
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| 16 | 16 | | entity listed in Section 802.051. |
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| 17 | 17 | | Sec. 761.002. DAMAGES IN CERTAIN CIVIL ACTIONS. In |
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| 18 | 18 | | addition to any other damages, including exemplary damages, costs, |
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| 19 | 19 | | and fees awarded, a court shall award to a claimant who prevails in |
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| 20 | 20 | | a civil action against an entity described by Section 761.001 |
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| 21 | 21 | | arising from a claim for coverage or benefits under an insurance |
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| 22 | 22 | | policy or contract or health benefit plan that is written by the |
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| 23 | 23 | | entity exemplary damages in an amount equal to the total amount of |
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| 24 | 24 | | premiums, contributions, or other consideration paid by the |
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| 25 | 25 | | claimant under the policy, contract, or plan in the five years |
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| 26 | 26 | | preceding the date of judgment. |
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| 27 | 27 | | SECTION 2. The change in law made by this Act applies only |
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| 28 | 28 | | to a cause of action that accrues on or after the effective date of |
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| 29 | 29 | | this Act. A cause of action that accrued before the effective date |
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| 30 | 30 | | of this Act is governed by the law applicable to the cause of action |
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| 31 | 31 | | immediately before the effective date of this Act, and that law is |
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| 32 | 32 | | continued in effect for that purpose. |
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| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2017. |
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