Texas 2017 - 85th Regular

Texas Senate Bill SB1537 Compare Versions

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1	1		By: Taylor of Galveston S.B. No. 1537
2		-	(Bonnen of Galveston)
3	2
4	3
5	4		A BILL TO BE ENTITLED
6	5		AN ACT
7	6		relating to dispute resolution for certain claims arising under
8	7		insurance policies issued by the Fair Access to Insurance
9	8		Requirements (FAIR) Plan Association; authorizing fees.
10	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	10		SECTION 1. Section 2211.003, Insurance Code, is amended by
12	11		adding Subsection (c) to read as follows:
13	12		(c) Subsection (a) does not apply to a person who is
14	13		required to resolve a dispute under Subchapter D-1.
15	14		SECTION 2. Subchapter A, Chapter 2211, Insurance Code, is
16	15		amended by adding Sections 2211.004 and 2211.005 to read as
17	16		follows:
18	17		Sec. 2211.004. CERTAIN CONDUCT IN DISPUTE RESOLUTION
19	18		PROHIBITED. (a) For purposes of this section, "presiding officer"
20	19		includes a judge, mediator, arbitrator, appraiser, or panel member.
21	20		(b) If a person insured under this chapter is assigned to
22	21		act as presiding officer to preside over or resolve a dispute
23	22		involving the association and another person insured under this
24	23		chapter, the presiding officer shall, not later than the seventh
25	24		day after the date of assignment, give written notice to the
26	25		association and to each other party to the dispute, or the
27	26		association's or other party's attorney, that the presiding officer
28	27		is insured under this chapter.
29	28		(c) In a proceeding with respect to which the commissioner
30	29		has authority to designate the presiding officer, the association
31	30		or other party that receives notice under Subsection (b) may file
32	31		with the commissioner a written objection to the assignment of the
33	32		presiding officer to the dispute. The written objection must
34	33		contain the factual basis on which the association or other party
35	34		objects to the assignment.
36	35		(d) The commissioner shall assign a different presiding
37	36		officer to the dispute if, after reviewing the objection filed
38	37		under Subsection (c), the commissioner determines that the
39	38		presiding officer originally assigned to the dispute has a direct
40	39		financial or personal interest in the outcome of the dispute.
41	40		(e) The association or other party must file an objection
42	41		under Subsection (c) not later than the earlier of:
43	42		(1) the seventh day after the date the association or
44	43		other party receives actual notice that the presiding officer is
45	44		insured under this chapter; or
46	45		(2) the seventh day before the date of the first
47	46		proceeding concerning the dispute.
48	47		(f) The commissioner may, on a showing of good cause, extend
49	48		the deadline to file an objection under Subsection (e).
50	49		Sec. 2211.005. APPLICABILITY OF CERTAIN OTHER LAW. (a) A
51	50		person may not bring a private action against the association,
52	51		including a claim against an agent or representative of the
53	52		association, under Chapter 541 or 542. Notwithstanding any other
54	53		provision of this code or this chapter, a class action under
55	54		Subchapter F, Chapter 541, or under Rule 42, Texas Rules of Civil
56	55		Procedure, may be brought against the association only by the
57	56		attorney general at the request of the department.
58	57		(b) Chapter 542 does not apply to the processing and
59	58		settlement of claims by the association.
60	59		SECTION 3. Subchapter D, Chapter 2211, Insurance Code, is
61	60		amended by adding Sections 2211.158 and 2211.159 to read as
62	61		follows:
63	62		Sec. 2211.158. REQUIRED POLICY PROVISIONS: DEADLINE FOR
64	63		FILING CLAIM; NOTICE CONCERNING RESOLUTION OF CERTAIN DISPUTES.
65	64		(a) An insurance policy issued by the association must:
66	65		(1) require an insured to file a claim under the policy
67	66		not later than the first anniversary of the date on which the damage
68	67		to property that is the basis of the claim occurs; and
69	68		(2) contain, in boldface type, a conspicuous notice
70	69		concerning the resolution of disputes under the policy, including:
71	70		(A) the processes and deadlines for appraisal
72	71		under Section 2211.174 and alternative dispute resolution under
73	72		Section 2211.175;
74	73		(B) the binding effect of appraisal under Section
75	74		2211.174; and
76	75		(C) the necessity of complying with the
77	76		requirements of Subchapter D-1 to seek relief, including judicial
78	77		relief.
79	78		(b) The commissioner, on a showing of good cause by a person
80	79		insured under this chapter, may extend the one-year period
81	80		described by Subsection (a)(1) for a period not to exceed 180 days.
82	81		Sec. 2211.159. VOLUNTARY ARBITRATION OF CERTAIN COVERAGE
83	82		AND CLAIM DISPUTES. (a) A person insured under this chapter may
84	83		elect to purchase a binding arbitration endorsement in a form
85	84		prescribed by the commissioner. A person who elects to purchase an
86	85		endorsement under this section must arbitrate a dispute involving
87	86		an act, ruling, or decision of the association relating to the
88	87		payment of, the amount of, or the denial of the claim.
89	88		(b) An arbitration under this section shall be conducted in
90	89		the manner and under rules and deadlines prescribed by the
91	90		commissioner by rule.
92	91		(c) The association may offer a person insured under this
93	92		chapter an actuarially justified premium discount on a policy
94	93		issued by the association if the person elects to purchase a binding
95	94		arbitration endorsement under this section. The premium discount
96	95		may not exceed 10 percent of the premium for the policy, before the
97	96		application of the discount.
98	97		(d) The commissioner shall adopt rules necessary to
99	98		implement and enforce this section, including rules defining
100	99		"actuarially justified" for the purposes of this section.
101	100		SECTION 4. Chapter 2211, Insurance Code, is amended by
102	101		adding Subchapter D-1 to read as follows:
103	102		SUBCHAPTER D-1. CLAIMS: SETTLEMENT AND DISPUTE RESOLUTION
104	103		Sec. 2211.171. DEFINITIONS. In this subchapter:
105	104		(1) "Association policy" means an insurance policy
106	105		issued by the association.
107	106		(2) "Claim" means a request for payment under an
108	107		association policy. The term also includes any other claim against
109	108		the association, or an agent or representative of the association,
110	109		relating to an insured loss, under any theory or cause of action of
111	110		any kind, regardless of the theory under which the claim is
112	111		asserted, the cause of action brought, or the type of damages
113	112		sought.
114	113		(3) "Claimant" means a person who makes a claim.
115	114		Sec. 2211.172. EXCLUSIVE REMEDIES AND LIMITATION ON AWARD.
116	115		(a) This subchapter provides the exclusive remedies for a claim
117	116		against the association, including an agent or representative of
118	117		the association.
119	118		(b) Subject to Section 2211.176, the association may not be
120	119		held liable for any amount other than covered losses payable under
121	120		the terms of the association policy.
122	121		(c) The association, or an agent or representative of the
123	122		association, may not be held liable for damages under Chapter 17,
124	123		Business & Commerce Code, or, except as otherwise specifically
125	124		provided by this chapter, under any provision of any law providing
126	125		for additional damages, exemplary damages, or a penalty.
127	126		Sec. 2211.173. FILING OF CLAIM; CLAIM PROCESSING.
128	127		(a) Subject to Section 2211.158(b), an insured must file a claim
129	128		under an association policy not later than the first anniversary of
130	129		the date on which the damage to property that is the basis of the
131	130		claim occurs.
132	131		(b) The claimant may submit written materials, comments,
133	132		documents, records, and other information to the association
134	133		relating to the claim. If the claimant fails to submit information
135	134		in the claimant's possession that is necessary for the association
136	135		to determine whether to accept or reject the claim, the association
137	136		may, not later than the 30th day after the date the claim is filed,
138	137		request in writing the necessary information from the claimant.
139	138		(c) The association shall, on request, provide a claimant
140	139		reasonable access to all information relevant to the determination
141	140		of the association concerning the claim. The claimant may copy the
142	141		information at the claimant's own cost or may request the
143	142		association to provide a copy of all or part of the information to
144	143		the claimant. The association may charge a claimant the actual cost
145	144		incurred by the association in providing a copy of information
146	145		under this section, excluding any amount for labor involved in
147	146		making any information or copy of information available to a
148	147		claimant.
149	148		(d) Unless the applicable 60-day period described by this
150	149		subsection is extended by the commissioner under Section 2211.180,
151	150		not later than the later of the 60th day after the date the
152	151		association receives a claim or the 60th day after the date the
153	152		association receives information requested under Subsection (b),
154	153		the association shall provide the claimant, in writing,
155	154		notification that:
156	155		(1) the association has accepted coverage for the
157	156		claim in full;
158	157		(2) the association has accepted coverage for the
159	158		claim in part and has denied coverage for the claim in part; or
160	159		(3) the association has denied coverage for the claim
161	160		in full.
162	161		(e) In a notice provided under Subsection (d)(1), the
163	162		association must inform the claimant of the amount of loss the
164	163		association will pay and of the time limit to demand appraisal under
165	164		Section 2211.174.
166	165		(f) In a notice provided under Subsection (d)(2) or (3), the
167	166		association must inform the claimant of, as applicable:
168	167		(1) the portion of the loss for which the association
169	168		accepts coverage and the amount of loss the association will pay;
170	169		(2) the portion of the loss for which the association
171	170		denies coverage and a detailed summary of the manner in which the
172	171		association determined not to accept coverage for that portion of
173	172		the claim; and
174	173		(3) the time limit to:
175	174		(A) demand appraisal under Section 2211.174 of
176	175		the portion of the loss for which the association accepts coverage;
177	176		and
178	177		(B) provide notice of intent to bring an action
179	178		as required by Section 2211.175.
180	179		(g) In addition to a notice provided under Subsection (d)(2)
181	180		or (3), the association shall provide a claimant with a form on
182	181		which the claimant may provide the association notice of intent to
183	182		bring an action as required by Section 2211.175.
184	183		Sec. 2211.1731. PAYMENT OF CLAIM. (a) Except as provided
185	184		by Subsection (b), if the association notifies a claimant under
186	185		Section 2211.173(d)(1) or (2) that the association has accepted
187	186		coverage for a claim in full or has accepted coverage for a claim in
188	187		part, the association shall pay the accepted claim or accepted
189	188		portion of the claim not later than the 10th day after the date
190	189		notice is made.
191	190		(b) If payment of the accepted claim or accepted portion of
192	191		the claim is conditioned on the performance of an act by the
193	192		claimant, the association shall pay the claim not later than the
194	193		10th day after the date the act is performed.
195	194		Sec. 2211.174. DISPUTES CONCERNING AMOUNT OF ACCEPTED
196	195		COVERAGE. (a) If the association accepts coverage for a claim in
197	196		full and a claimant disputes only the amount of loss the association
198	197		will pay for the claim, or if the association accepts coverage for a
199	198		claim in part and a claimant disputes the amount of loss the
200	199		association will pay for the accepted portion of the claim, the
201	200		claimant may request from the association a detailed summary of the
202	201		manner in which the association determined the amount of loss the
203	202		association will pay.
204	203		(b) If a claimant disputes the amount of loss the
205	204		association will pay for a claim or a portion of a claim, the
206	205		claimant, not later than the 60th day after the date the claimant
207	206		receives the notice described by Section 2211.173(d)(1) or (2), may
208	207		demand appraisal in accordance with the terms of the association
209	208		policy.
210	209		(c) If a claimant, on a showing of good cause and not later
211	210		than the 15th day after the expiration of the 60-day period
212	211		described by Subsection (b), requests in writing that the 60-day
213	212		period be extended, the association may grant an additional 30-day
214	213		period in which the claimant may demand appraisal.
215	214		(d) If a claimant demands appraisal under this section:
216	215		(1) the appraisal must be conducted as provided by the
217	216		association policy; and
218	217		(2) the claimant and the association are responsible
219	218		in equal shares for paying any costs incurred or charged in
220	219		connection with the appraisal, including a fee charged under
221	220		Subsection (e).
222	221		(e) If a claimant demands appraisal under this section and
223	222		the appraiser retained by the claimant and the appraiser retained
224	223		by the association are able to agree on an appraisal umpire to
225	224		participate in the resolution of the dispute, the appraisal umpire
226	225		is the umpire chosen by the two appraisers. If the appraiser
227	226		retained by the claimant and the appraiser retained by the
228	227		association are unable to agree on an appraisal umpire to
229	228		participate in the resolution of the dispute, the commissioner
230	229		shall select an appraisal umpire from a roster of qualified umpires
231	230		maintained by the department. The department may:
232	231		(1) require appraisers to register with the department
233	232		as a condition of being placed on the roster; and
234	233		(2) charge a reasonable registration fee to defray the
235	234		cost incurred by the department in maintaining the roster and the
236	235		commissioner in selecting an appraisal umpire under this
237	236		subsection.
238	237		(f) Except as provided by Subsection (g), the appraisal
239	238		decision is binding on the claimant and the association as to the
240	239		amount of loss the association will pay for a fully accepted claim
241	240		or the accepted portion of a partially accepted claim and is not
242	241		appealable or otherwise reviewable. A claimant that does not
243	242		demand appraisal before the expiration of the periods described by
244	243		Subsections (b) and (c) waives the claimant's right to contest the
245	244		association's determination of the amount of loss the association
246	245		will pay with reference to a fully accepted claim or the accepted
247	246		portion of a partially accepted claim.
248	247		(g) A claimant or the association may, not later than the
249	248		second anniversary of the date of an appraisal decision, file an
250	249		action in a district court in the county in which the loss that is
251	250		the subject of the appraisal occurred to vacate the appraisal
252	251		decision and begin a new appraisal process if:
253	252		(1) the appraisal decision was obtained by corruption,
254	253		fraud, or other undue means;
255	254		(2) the rights of the claimant or the association were
256	255		prejudiced by:
257	256		(A) evident partiality by an appraisal umpire;
258	257		(B) corruption in an appraiser or appraisal
259	258		umpire; or
260	259		(C) misconduct or wilful misbehavior of an
261	260		appraiser or appraisal umpire; or
262	261		(3) an appraiser or appraisal umpire:
263	262		(A) exceeded the appraiser's or appraisal
264	263		umpire's powers;
265	264		(B) refused to postpone the appraisal after a
266	265		showing of sufficient cause for the postponement;
267	266		(C) refused to consider evidence material to the
268	267		claim; or
269	268		(D) conducted the appraisal in a manner that
270	269		substantially prejudiced the rights of the claimant or the
271	270		association.
272	271		(h) Except as provided by Subsection (g), a claimant may not
273	272		bring an action against the association with reference to a claim
274	273		for which the association has accepted coverage in full.
275	274		Sec. 2211.175. DISPUTES CONCERNING DENIED COVERAGE.
276	275		(a) If the association denies coverage for a claim in part or in
277	276		full and the claimant disputes that determination, the claimant,
278	277		not later than the expiration of the limitations period described
279	278		by Section 2211.177(a) but after the date the claimant receives the
280	279		notice described by Section 2211.173(d)(2) or (3), must provide the
281	280		association with notice that the claimant intends to bring an
282	281		action against the association concerning the partial or full
283	282		denial of the claim. A claimant that does not provide notice of
284	283		intent to bring an action before the expiration of the period
285	284		described by this subsection waives the claimant's right to contest
286	285		the association's partial or full denial of coverage and is barred
287	286		from bringing an action against the association concerning the
288	287		denial of coverage.
289	288		(b) If a claimant provides notice of intent to bring an
290	289		action under Subsection (a), the association may require the
291	290		claimant, as a prerequisite to filing the action against the
292	291		association, to submit the dispute to alternative dispute
293	292		resolution by mediation or moderated settlement conference, as
294	293		provided by Chapter 154, Civil Practice and Remedies Code.
295	294		(c) The association must request alternative dispute
296	295		resolution of a dispute described by Subsection (b) not later than
297	296		the 60th day after the date the association receives from the
298	297		claimant notice of intent to bring an action.
299	298		(d) Alternative dispute resolution under this section must
300	299		be completed not later than the 60th day after the date a request
301	300		for alternative dispute resolution is made under Subsection (c).
302	301		The 60-day period described by this subsection may be extended by
303	302		the commissioner in accordance with Section 2211.180 or by the
304	303		association and a claimant by mutual consent.
305	304		(e) If the claimant is not satisfied after completion of
306	305		alternative dispute resolution, or if alternative dispute
307	306		resolution is not completed before the expiration of the 60-day
308	307		period described by Subsection (d) or any extension under that
309	308		subsection, the claimant may bring an action against the
310	309		association in a district court in the county in which the loss that
311	310		is the subject of the coverage denial occurred. An action brought
312	311		under this subsection shall be presided over by a judge appointed by
313	312		the judicial panel on multidistrict litigation designated under
314	313		Section 74.161, Government Code. A judge appointed under this
315	314		section must be an active judge, as defined by Section 74.041,
316	315		Government Code, who is a resident of the county in which the loss
317	316		that is the basis of the disputed denied coverage occurred or of a
318	317		county adjacent to the county in which that loss occurred.
319	318		(f) If a claimant brings an action against the association
320	319		concerning a partial or full denial of coverage, the court shall
321	320		abate the action until the notice of intent to bring an action has
322	321		been provided and, if requested by the association, the dispute has
323	322		been submitted to alternative dispute resolution, in accordance
324	323		with this section.
325	324		(g) A moderated settlement conference under this section
326	325		may be conducted by a panel consisting of one or more impartial
327	326		third parties.
328	327		(h) If the association requests mediation under this
329	328		section, the claimant and the association are responsible in equal
330	329		shares for paying any costs incurred or charged in connection with
331	330		the mediation.
332	331		(i) If the association requests mediation under this
333	332		section, and the claimant and the association are able to agree on a
334	333		mediator, the mediator is the mediator agreed to by the claimant and
335	334		the association. If the claimant and the association are unable to
336	335		agree on a mediator, the commissioner shall select a mediator from a
337	336		roster of qualified mediators maintained by the department. The
338	337		department may:
339	338		(1) require mediators to register with the department
340	339		as a condition of being placed on the roster; and
341	340		(2) charge a reasonable registration fee to defray the
342	341		cost incurred by the department in maintaining the roster and the
343	342		commissioner in selecting a mediator under this subsection.
344	343		(j) The commissioner shall establish rules to implement
345	344		this section, including provisions for expediting alternative
346	345		dispute resolution, facilitating the ability of a claimant to
347	346		appear with or without counsel, establishing qualifications
348	347		necessary for mediators to be placed on the roster maintained by the
349	348		department under Subsection (i), and providing that formal rules of
350	349		evidence shall not apply to the proceedings.
351	350		Sec. 2211.176. ISSUES BROUGHT TO SUIT; LIMITATIONS ON
352	351		RECOVERY. (a) The only issues a claimant may raise in an action
353	352		brought against the association under Section 2211.175 are:
354	353		(1) whether the association's denial of coverage was
355	354		proper; and
356	355		(2) the amount of the damages described by Subsection
357	356		(b) to which the claimant is entitled, if any.
358	357		(b) Except as provided by Subsections (c) and (d), a
359	358		claimant that brings an action against the association under
360	359		Section 2211.175 may recover only:
361	360		(1) the covered loss payable under the terms of the
362	361		association policy less, if applicable, the amount of loss already
363	362		paid by the association for any portion of a covered loss for which
364	363		the association accepted coverage;
365	364		(2) prejudgment interest from the first day after the
366	365		date specified in Section 2211.1731 by which the association was or
367	366		would have been required to pay an accepted claim or the accepted
368	367		portion of a claim, at the prejudgment interest rate provided by
369	368		Subchapter B, Chapter 304, Finance Code; and
370	369		(3) court costs and reasonable and necessary
371	370		attorney's fees.
372	371		(c) Nothing in this chapter, including Subsection (b), may
373	372		be construed to limit the consequential damages, or the amount of
374	373		consequential damages, that a claimant may recover under common law
375	374		in an action against the association.
376	375		(d) A claimant that brings an action against the association
377	376		under Section 2211.175 may, in addition to the covered loss
378	377		described by Subsection (b)(1) and any consequential damages
379	378		recovered by the claimant under common law, recover damages in an
380	379		amount not to exceed the aggregated amount of the covered loss
381	380		described by Subsection (b)(1) and the consequential damages
382	381		recovered under common law if the claimant proves by clear and
383	382		convincing evidence that the association mishandled the claimant's
384	383		claim to the claimant's detriment by intentionally:
385	384		(1) failing to meet the deadlines or timelines
386	385		established under this subchapter without good cause, including the
387	386		applicable deadline established under Section 2211.1731 for
388	387		payment of an accepted claim or the accepted portion of a claim;
389	388		(2) failing to provide the notice required under
390	389		Section 2211.173(d);
391	390		(3) rejecting a claim without conducting a reasonable
392	391		investigation with respect to the claim; or
393	392		(4) denying coverage for a claim in part or in full if
394	393		the association's liability has become reasonably clear as a result
395	394		of the association's investigation with respect to the portion of
396	395		the claim that was denied.
397	396		(e) For purposes of Subsection (d), "intentionally" means
398	397		actual awareness of the facts surrounding the act or practice
399	398		listed in Subsection (d)(1), (2), (3), or (4), coupled with the
400	399		specific intent that the claimant suffer harm or damages as a result
401	400		of the act or practice. Specific intent may be inferred from
402	401		objective manifestations that the association acted intentionally
403	402		or from facts that show that the association acted with flagrant
404	403		disregard of the duty to avoid the acts or practices listed in
405	404		Subsection (d)(1), (2), (3), or (4).
406	405		Sec. 2211.177. LIMITATIONS PERIOD. (a) Notwithstanding
407	406		any other law, a claimant that brings an action against the
408	407		association under Section 2211.175 must bring the action not later
409	408		than the second anniversary of the date on which the person receives
410	409		a notice described by Section 2211.173(d)(2) or (3).
411	410		(b) This section is a statute of repose and controls over
412	411		any other applicable limitations period.
413	412		Sec. 2211.178. CONSTRUCTION WITH OTHER LAW. (a) To the
414	413		extent of any conflict between a provision of this subchapter and
415	414		any other law, the provision of this subchapter prevails.
416	415		(b) Notwithstanding any other law, the association may not
417	416		bring an action against a claimant, for declaratory or other
418	417		relief, before the 180th day after the date an appraisal under
419	418		Section 2211.174, or alternative dispute resolution under Section
420	419		2211.175, is completed.
421	420		Sec. 2211.179. RULEMAKING. (a) The commissioner shall
422	421		adopt rules regarding the provisions of this subchapter, including
423	422		rules concerning:
424	423		(1) qualifications and selection of appraisers for the
425	424		appraisal procedure and mediators for the mediation process;
426	425		(2) procedures and deadlines for the payment and
427	426		handling of claims by the association as well as the procedures and
428	427		deadlines for a review of a claim by the association; and
429	428		(3) any other matters regarding the handling of claims
430	429		that are not inconsistent with this subchapter.
431	430		(b) All rules adopted by the commissioner under this section
432	431		must promote the fairness of the process, protect the rights of
433	432		aggrieved policyholders, and ensure that policyholders may
434	433		participate in the claims review process without the necessity of
435	434		engaging legal counsel.
436	435		Sec. 2211.180. COMMISSIONER EXTENSION OF DEADLINES.
437	436		(a) The commissioner, on a showing of good cause, may extend any
438	437		deadline established under this subchapter.
439	438		(b) For the purposes of Subsection (a), "good cause"
440	439		includes military deployment.
441	440		Sec. 2211.181. OMBUDSMAN PROGRAM. (a) The department
442	441		shall establish an ombudsman program to provide information and
443	442		educational programs to assist persons insured under this chapter
444	443		with the claim processes under this subchapter.
445	444		(b) Not later than March 1 of each year, the department
446	445		shall prepare and submit to the commissioner a budget for the
447	446		ombudsman program, including approval of all expenditures incurred
448	447		in administering and operating the program. The commissioner shall
449	448		adopt or modify and adopt the budget not later than April 1 of the
450	449		year in which the budget is submitted.
451	450		(c) Not later than May 1 of each year, the association shall
452	451		transfer to the ombudsman program money in an amount equal to the
453	452		amount of the budget adopted under Subsection (b). The ombudsman
454	453		program, not later than April 30 of each year, shall return to the
455	454		association any unexpended funds that the program received from the
456	455		association in the previous year.
457	456		(d) The department shall, not later than the 60th day after
458	457		the date of a catastrophic event, as defined by the commissioner for
459	458		the purposes of this subsection, prepare and submit an amended
460	459		budget to the commissioner for approval and report to the
461	460		commissioner the approximate number of claimants eligible for
462	461		ombudsman services. The commissioner shall adopt rules as
463	462		necessary to implement an amended budget submitted under this
464	463		section, including rules regarding the transfer of additional money
465	464		from the association to the program.
466	465		(e) The ombudsman program may provide to persons insured
467	466		under this chapter information and educational programs through:
468	467		(1) informational materials;
469	468		(2) toll-free telephone numbers;
470	469		(3) public meetings;
471	470		(4) outreach centers;
472	471		(5) the Internet; and
473	472		(6) other reasonable means.
474	473		(f) The ombudsman program is administratively attached to
475	474		the department. The department shall provide the staff, services,
476	475		and facilities necessary for the ombudsman program to operate,
477	476		including:
478	477		(1) administrative assistance and service, including
479	478		budget planning and purchasing;
480	479		(2) personnel services;
481	480		(3) office space; and
482	481		(4) computer equipment and support.
483	482		(g) The ombudsman program shall prepare and make available
484	483		to each person insured under this chapter information describing
485	484		the functions of the ombudsman program.
486	485		(h) The association, in the manner prescribed by the
487	486		commissioner by rule, shall notify each person insured under this
488	487		chapter concerning the operation of the ombudsman program.
489	488		(i) The commissioner may adopt rules as necessary to
490	489		implement this section.
491	490		SECTION 5. (a) Except as otherwise specifically provided
492	491		by this section, this Act applies only to an insurance policy that
493	492		is delivered, issued for delivery, or renewed by the Fair Access to
494	493		Insurance Requirements Plan Association on or after the 60th day
495	494		after the effective date of this Act. An insurance policy that is
496	495		delivered, issued for delivery, or renewed by the Fair Access to
497	496		Insurance Requirements Plan Association before the 60th day after
498	497		the effective date of this Act is governed by the law as it existed
499	498		immediately before the effective date of this Act, and that law is
500	499		continued in effect for that purpose.
501	500		(b) The deadline to file a claim under an insurance policy
502	501		delivered, issued for delivery, or renewed before the 60th day
503	502		after the effective date of this Act by the Fair Access to Insurance
504	503		Requirements Plan Association is governed by the law as it existed
505	504		immediately before the effective date of this Act, and that law is
506	505		continued in effect for that purpose.
507	506		(c) If a person insured by the Fair Access to Insurance
508	507		Requirements Plan Association disputes the amount the association
509	508		will pay for a partially or fully accepted claim filed by the
510	509		person, Section 2211.174, Insurance Code, as added by this Act,
511	510		applies only if the insurance policy under which the claim is filed
512	511		is delivered, issued for delivery, or renewed on or after the 60th
513	512		day after the effective date of this Act.
514	513		(d) If a person insured by the Fair Access to Insurance
515	514		Requirements Plan Association disputes the amount the association
516	515		will pay for a partially or fully accepted claim filed by the person
517	516		and the insurance policy under which the claim is filed is
518	517		delivered, issued for delivery, or renewed before the 60th day
519	518		after the effective date of this Act:
520	519		(1) Section 2211.174, Insurance Code, as added by this
521	520		Act, does not apply to the resolution of the dispute; and
522	521		(2) notwithstanding any other provision of this Act,
523	522		the claimant must attempt to resolve the dispute through any
524	523		appraisal process contained in the association policy under which
525	524		the claim is filed before an action may be brought against the Fair
526	525		Access to Insurance Requirements Plan Association concerning the
527	526		claim.
528	527		(e) The person insured by the Fair Access to Insurance
529	528		Requirements Plan Association and the association may agree that an
530	529		appraisal conducted under Subsection (d)(2) of this section is
531	530		binding on the parties.
532	531		(f) An action brought against the association concerning a
533	532		claim described by Subsection (d) of this section shall be abated
534	533		until the appraisal process under Subsection (d)(2) of this section
535	534		is completed.
536	535		(g) Notwithstanding Sections 2211.175 and 2211.176,
537	536		Insurance Code, as added by this Act, Subsection (b) of this
538	537		section, or any other provision of this Act, Sections 2211.176(b),
539	538		(c), (d), and (e), Insurance Code, apply to any cause of action that
540	539		accrues against the Fair Access to Insurance Requirements Plan
541	540		Association on or after the effective date of this Act and the basis
542	541		of which is a claim filed under an insurance policy that is
543	542		delivered, issued for delivery, or renewed by the association,
544	543		regardless of the date on which the policy was delivered, issued for
545	544		delivery, or renewed.
546	545		SECTION 6. This Act takes effect immediately if it receives
547	546		a vote of two-thirds of all the members elected to each house, as
548	547		provided by Section 39, Article III, Texas Constitution. If this
549	548		Act does not receive the vote necessary for immediate effect, this
550	549		Act takes effect September 1, 2017.