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A BILL TO BE ENTITLED
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AN ACT
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relating to the award of damages for certain deceptive, unfair, and |
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prohibited practices by an insurer. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 541.152(b), Insurance Code, is amended |
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to read as follows: |
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(b) On a finding by the trier of fact that the defendant |
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knowingly committed the act complained of, the trier of fact shall |
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[may] award the plaintiff [an amount not to exceed] three times the |
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amount of actual damages. |
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SECTION 2. Section 542.060(a), Insurance Code, is amended |
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to read as follows: |
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(a) If an insurer that is liable for a claim under an |
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insurance policy is not in compliance with this subchapter, the |
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insurer is liable to pay the holder of the policy or the beneficiary |
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making the claim under the policy, in addition to the amount of the |
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claim, [interest on the amount of the claim at the rate of] 18 |
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percent of the amount of the unpaid balance of the claim per [a] |
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year as damages, together with reasonable attorney's fees. Damages |
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under this section begin to accrue on the date on which the insurer |
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becomes liable for failure to comply with this subchapter as |
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determined under Section 542.058 and continue to accrue until the |
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date on which the unpaid balance of the claim is paid. |
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SECTION 3. (a) The change in law made by Section 541.152, |
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Insurance Code, as amended by this Act, applies only to an action |
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for damages arising from an act or practice that occurs on or after |
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the effective date of this Act. An action for damages for an act or |
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practice that occurs before the effective date of this Act is |
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governed by the law in effect immediately before that date, and that |
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law is continued in effect for that purpose. |
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(b) The change in law made by Section 542.060, Insurance |
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Code, as amended by this Act, applies only to liability for a |
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violation of Subchapter B, Chapter 542, Insurance Code, as amended |
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by this Act, that occurs on or after the effective date of this Act. |
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Liability for a violation of Subchapter B, Chapter 542, Insurance |
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Code, that occurs before the effective date of this Act is governed |
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by the law in effect immediately before that date, and that law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |