By: Geren H.B. No. 3969
A BILL TO BE ENTITLED
AN ACT
relating to disclosures by liability insurers and policyholders to
third-party claimants; providing an administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 542, Insurance Code, is amended by
adding Subchapter C-2 to read as follows:
SUBCHAPTER C-2. DISCLOSURE OF POLICY INFORMATION TO THIRD-PARTY
CLAIMANTS
Sec. 542.141. DISCLOSURE BY INSURER. (a) This section
applies to an insurer that receives:
(1) a written request for policy information from a
claimant asserting a claim that is or might be covered under
liability insurance coverage provided by the insurer to a
policyholder against whom the claim is asserted; or
(2) a claimant's request for policy information
forwarded under Section 542.142.
(b) An insurer described by Subsection (a) shall provide to
the claimant:
(1) a sworn statement of an officer or claims manager
of the insurer that contains the following information for each
policy known by the insurer that provides or may provide relevant
coverage, including excess or umbrella coverage:
(A) the name of the insurer;
(B) the name of each insured;
(C) the limits of liability coverage; and
(D) any policy or coverage defense the insurer
reasonably believes is available to the insurer at the time the
sworn statement is made; and
(2) a copy of each policy described by Subdivision (1)
under which the insurer provides coverage.
(c) An insurer that fails to comply with this section is
subject to an administrative penalty under Chapter 84 of not more
than $500.
Sec. 542.142. DISCLOSURE BY POLICYHOLDER. (a) This
section applies to a policyholder that receives a written request
for policy information from a claimant asserting a claim against
the policyholder that the policyholder believes is or may be
covered under liability insurance coverage provided to the
policyholder.
(b) A policyholder described by Subsection (a) shall
promptly:
(1) disclose to the claimant the name of and type of
coverage provided by each insurer that provides or may provide
liability coverage for the claim; and
(2) forward the claimant's request to each insurer
included in the disclosure under Subdivision (1).
Sec. 542.143. INSURER'S DEADLINE FOR PROVIDING REQUESTED
INFORMATION. An insurer shall provide the information requested
under Section 542.141 or 542.142 to the claimant not later than the
30th day after the date the insurer receives the request from the
claimant or policyholder.
Sec. 542.144. AMENDMENT OF STATEMENT. (a) An insurer that
is aware of a material change that affects a fact stated in the
insurer's sworn statement under Section 542.141 or a policyholder
that is aware of a material change that affects a fact stated in the
policyholder's disclosure under Section 542.142 shall provide to
the claimant a written amended statement or disclosure, as
applicable, stating the material change.
(b) An amended statement provided by an insurer under
Subsection (a) must be sworn and include a copy of each insurance
policy relevant to the change.
(c) The insurer or the policyholder must provide the amended
statement or disclosure described by Subsection (a) not later than
the second business day after the date the insurer or policyholder
is aware of the material change.
SECTION 2. This Act takes effect September 1, 2025.