85R10721 LED-D
By: Davis of Dallas H.B. No. 2394
A BILL TO BE ENTITLED
AN ACT
relating to the award of damages in certain civil actions against
certain entities regulated under the Insurance Code.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 5, Insurance Code, is amended by adding
Subtitle H to read as follows:
SUBTITLE H. CIVIL ACTIONS AGAINST REGULATED ENTITIES
CHAPTER 761. DAMAGES IN CERTAIN CIVIL ACTIONS
Sec. 761.001. APPLICABILITY OF CHAPTER. This chapter
applies to each entity regulated by the commissioner, including an
entity listed in Section 802.051.
Sec. 761.002. DAMAGES IN CERTAIN CIVIL ACTIONS. In
addition to any other damages, including exemplary damages, costs,
and fees awarded, a court shall award to a claimant who prevails in
a civil action against an entity described by Section 761.001
arising from a claim for coverage or benefits under an insurance
policy or contract or health benefit plan that is written by the
entity exemplary damages in an amount equal to the total amount of
premiums, contributions, or other consideration paid by the
claimant under the policy, contract, or plan in the five years
preceding the date of judgment.
SECTION 2. The change in law made by this Act applies only
to a cause of action that accrues on or after the effective date of
this Act. A cause of action that accrued before the effective date
of this Act is governed by the law applicable to the cause of action
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.