86R28141 SMT-F
By: Lucio III H.B. No. 2686
Substitute the following for H.B. No. 2686:
By: Lucio III C.S.H.B. No. 2686
A BILL TO BE ENTITLED
AN ACT
relating to a dispute relating to a denial of coverage by the Texas
Windstorm Insurance Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.573, Insurance Code, is amended by
adding Subsection (d-1) to read as follows:
(d-1) Subject to Section 2210.575, if the association
wholly or partly denies a claim under this section, a claimant may
maintain an action against the association concerning the denial
regardless of whether the association later accepts the previously
denied portion of the claim.
SECTION 2. Section 2210.576(a), Insurance Code, is amended
to read as follows:
(a) The only issues a claimant may raise in an action
brought against the association under Section 2210.575 are:
(1) whether the association's denial of coverage was
proper, regardless of whether the association later accepts the
claim; and
(2) the amount of the damages described by Subsection
(b) to which the claimant is entitled, if any.
SECTION 3. The change in law made by this Act applies only
to a claim filed on or after the effective date of this Act. A claim
filed before the effective date of this Act is governed by the law
applicable to the claim immediately before the effective date of
this Act, and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2019.