Texas 2025 - 89th Regular

Texas House Bill HB3969 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Geren H.B. No. 3969
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to disclosures by liability insurers and policyholders to
9	9	third-party claimants; providing an administrative penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 542, Insurance Code, is amended by
12	12	adding Subchapter C-2 to read as follows:
13	13	SUBCHAPTER C-2. DISCLOSURE OF POLICY INFORMATION TO THIRD-PARTY
14	14	CLAIMANTS
15	15	Sec. 542.141. DISCLOSURE BY INSURER. (a) This section
16	16	applies to an insurer that receives:
17	17	(1) a written request for policy information from a
18	18	claimant asserting a claim that is or might be covered under
19	19	liability insurance coverage provided by the insurer to a
20	20	policyholder against whom the claim is asserted; or
21	21	(2) a claimant's request for policy information
22	22	forwarded under Section 542.142.
23	23	(b) An insurer described by Subsection (a) shall provide to
24	24	the claimant:
25	25	(1) a sworn statement of an officer or claims manager
26	26	of the insurer that contains the following information for each
27	27	policy known by the insurer that provides or may provide relevant
28	28	coverage, including excess or umbrella coverage:
29	29	(A) the name of the insurer;
30	30	(B) the name of each insured;
31	31	(C) the limits of liability coverage; and
32	32	(D) any policy or coverage defense the insurer
33	33	reasonably believes is available to the insurer at the time the
34	34	sworn statement is made; and
35	35	(2) a copy of each policy described by Subdivision (1)
36	36	under which the insurer provides coverage.
37	37	(c) An insurer that fails to comply with this section is
38	38	subject to an administrative penalty under Chapter 84 of not more
39	39	than $500.
40	40	Sec. 542.142. DISCLOSURE BY POLICYHOLDER. (a) This
41	41	section applies to a policyholder that receives a written request
42	42	for policy information from a claimant asserting a claim against
43	43	the policyholder that the policyholder believes is or may be
44	44	covered under liability insurance coverage provided to the
45	45	policyholder.
46	46	(b) A policyholder described by Subsection (a) shall
47	47	promptly:
48	48	(1) disclose to the claimant the name of and type of
49	49	coverage provided by each insurer that provides or may provide
50	50	liability coverage for the claim; and
51	51	(2) forward the claimant's request to each insurer
52	52	included in the disclosure under Subdivision (1).
53	53	Sec. 542.143. INSURER'S DEADLINE FOR PROVIDING REQUESTED
54	54	INFORMATION. An insurer shall provide the information requested
55	55	under Section 542.141 or 542.142 to the claimant not later than the
56	56	30th day after the date the insurer receives the request from the
57	57	claimant or policyholder.
58	58	Sec. 542.144. AMENDMENT OF STATEMENT. (a) An insurer that
59	59	is aware of a material change that affects a fact stated in the
60	60	insurer's sworn statement under Section 542.141 or a policyholder
61	61	that is aware of a material change that affects a fact stated in the
62	62	policyholder's disclosure under Section 542.142 shall provide to
63	63	the claimant a written amended statement or disclosure, as
64	64	applicable, stating the material change.
65	65	(b) An amended statement provided by an insurer under
66	66	Subsection (a) must be sworn and include a copy of each insurance
67	67	policy relevant to the change.
68	68	(c) The insurer or the policyholder must provide the amended
69	69	statement or disclosure described by Subsection (a) not later than
70	70	the second business day after the date the insurer or policyholder
71	71	is aware of the material change.
72	72	SECTION 2. This Act takes effect September 1, 2025.