| 1 | 1 | | By: Hughes S.B. No. 1935 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to recovery under uninsured and underinsured motorist |
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| 7 | 7 | | insurance coverage. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter C, Chapter 1952, Insurance Code, is |
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| 10 | 10 | | amended by adding Sections 1952.1061, 1952.1062, and 1952.1063 to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 1952.1061. NOTICE OF CLAIM FOR UNFAIR SETTLEMENT |
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| 13 | 13 | | PRACTICE. For the purpose of Section 541.060, an insured may |
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| 14 | 14 | | provide notice of a claim for uninsured or underinsured motorist |
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| 15 | 15 | | coverage by providing a written notification to the insurer that |
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| 16 | 16 | | reasonably informs the insurer of the facts of the claim. |
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| 17 | 17 | | Sec. 1952.1062. LEGAL DETERMINATION NOT PREREQUISITE TO |
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| 18 | 18 | | RECOVERY FOR UNFAIR SETTLEMENT PRACTICE. A judgment or other legal |
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| 19 | 19 | | determination establishing the other motorist's liability or the |
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| 20 | 20 | | extent of the insured's damages is not a prerequisite to recovery in |
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| 21 | 21 | | an action under Section 541.151 for a violation of Section 541.060. |
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| 22 | 22 | | Sec. 1952.1063. LIMITATION ON EXTRA-CONTRACTUAL CAUSES OF |
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| 23 | 23 | | ACTION. In regard to a claim for uninsured or underinsured motorist |
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| 24 | 24 | | coverage, the only extra-contractual cause of action available to |
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| 25 | 25 | | an insured is provided by Section 541.151 to recover damages under |
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| 26 | 26 | | Section 541.152 for a violation of Section 541.060. |
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| 27 | 27 | | SECTION 2. (a) Except as provided by this section, the |
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| 28 | 28 | | change in law made by this Act applies only to a cause of action that |
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| 29 | 29 | | accrues on or after the effective date of this Act. A cause of |
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| 30 | 30 | | action that accrues before the effective date of this Act is |
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| 31 | 31 | | governed by the law in effect immediately before that date, and that |
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| 32 | 32 | | law is continued in effect for that purpose. |
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| 33 | 33 | | (b) The change in law made by this Act does not affect the |
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| 34 | 34 | | enforceability of any provision in an insurance policy delivered, |
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| 35 | 35 | | issued for delivery, or renewed before January 1, 2022, that |
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| 36 | 36 | | conflicts with the change in law made by this Act. |
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| 37 | 37 | | SECTION 3. This Act takes effect September 1, 2021. |
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