Bill Text: TX SB851 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to a claim filing period and contractual limitations period in certain property insurance policies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-03-12 - Left pending in committee [SB851 Detail]
Download: Texas-2013-SB851-Introduced.html
83R6361 MEW-D | ||
By: Taylor | S.B. No. 851 |
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relating to a claim filing period and contractual limitations | ||
period in certain property insurance policies. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is | ||
amended by adding Section 2301.011 to read as follows: | ||
Sec. 2301.011. CONTRACTUAL LIMITATIONS PERIOD AND CLAIM | ||
FILING PERIOD IN CERTAIN RESIDENTIAL OR COMMERCIAL PROPERTY | ||
INSURANCE FORMS. (a) A policy form or printed endorsement form for | ||
residential or commercial property insurance that is filed by an | ||
insurer or adopted by the department under this subchapter may | ||
provide for a contractual limitations period for filing suit on a | ||
first-party claim under the policy. The contractual limitations | ||
period may not end before the earlier of: | ||
(1) two years from the date the insurer wholly or | ||
partly denies the claim; or | ||
(2) three years from the date of the loss that is the | ||
subject of the claim. | ||
(b) A policy or endorsement described by Subsection (a) may | ||
contain a provision requiring that a claim be filed with the insurer | ||
not later than one year after the date of the loss that is the | ||
subject of the claim. | ||
(c) A contractual provision contrary to Subsection (a) is | ||
void. This subsection does not affect the validity of other | ||
provisions of a contract that may be given effect without the voided | ||
provision to the extent those provisions are severable. | ||
SECTION 2. Section 16.070, Civil Practice and Remedies | ||
Code, is amended by amending Subsection (a) and adding Subsection | ||
(c) to read as follows: | ||
(a) Except as provided by Subsections [ |
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(c), a person may not enter a stipulation, contract, or agreement | ||
that purports to limit the time in which to bring suit on the | ||
stipulation, contract, or agreement to a period shorter than two | ||
years. A stipulation, contract, or agreement that establishes a | ||
limitations period that is shorter than two years is void in this | ||
state. | ||
(c) This section does not apply to a residential or | ||
commercial property insurance policy that complies with Section | ||
2301.011, Insurance Code. | ||
SECTION 3. Section 2301.011, Insurance Code, as added by | ||
this Act, applies only to an insurance policy that is delivered, | ||
issued for delivery, or renewed on or after January 1, 2014. A | ||
policy delivered, issued for delivery, or renewed before January 1, | ||
2014, is governed by the law as it existed immediately before the | ||
effective date of this Act, and that law is continued in effect for | ||
that purpose. | ||
SECTION 4. This Act takes effect September 1, 2013. |