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A BILL TO BE ENTITLED
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AN ACT
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relati |
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ng to a claim filing period and contractual limitations |
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period in certain property insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is |
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amended by adding Section 2301.011 to read as follows: |
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Sec. 2301.011. CONTRACTUAL LIMITATIONS PERIOD AND CLAIM |
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FILING PERIOD IN CERTAIN RESIDENTIAL OR COMMERCIAL PROPERTY |
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INSURANCE FORMS. (a) Notwithstanding Section 16.070, Civil |
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Practice and Remedies Code, a policy form or printed endorsement |
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form for residential or commercial property insurance that is filed |
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by an insurer or adopted by the department under this subchapter may |
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provide for a contractual limitations period for filing suit on a |
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first-party claim under the policy. The contractual limitations |
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period may not end before the earlier of: |
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(1) two years from the date the insurer accepts or |
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rejects the claim if the insurer has notified the insured by |
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certified mail, return receipt requested, that the insurer has |
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accepted or rejected the claim and has notified the insured in |
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writing that the insured must file suit on the claim within two |
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years of the date the insurer accepted or rejected the claim; or |
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(2) three years from the date that the insured |
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discovered or, by the exercise of reasonable diligence, should have |
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discovered that the insurer accepted or rejected the claim. |
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(b) A policy or endorsement described by Subsection (a) may |
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also contain a provision requiring that a claim be filed with the |
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insurer not later than two years after the date that the insured |
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discovered or, by the exercise of reasonable diligence, should have |
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discovered the loss that is the subject of the claim. |
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(c) A contractual provision contrary to Subsection (a) is |
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void. If a contractual provision is voided under this subsection, |
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the voiding of the provision does not affect the validity of other |
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provisions of a contract that may be given effect without the voided |
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provision to the extent those provisions are severable. |
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(d) An insurer using a policy form or endorsement form in |
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this state that includes a provision described by Subsection (a) or |
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(b) shall, at the time the policy or endorsement is issued or |
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renewed, disclose in writing to an applicant or insured the |
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contractual limitations or claims filing period, as applicable, in |
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the policy or endorsement. |
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SECTION 2. Section 2301.011, Insurance Code, as added by |
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this Act, applies only to an insurance policy that is delivered, |
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issued for delivery, or renewed on or after January 1, 2016. A |
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policy delivered, issued for delivery, or renewed before January 1, |
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2016, is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |