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      By: Garcia Hernandez H.B. No. 946       A BILL TO BE ENTITLED   AN ACT   relating to prohibiting oral releases for automobile insurance   claims.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 10, Insurance Code, is amended   by adding Chapter 1955 to read as follows:   CHAPTER 1955. ORAL RELEASES FOR AUTOMOBILE INSURANCE CLAIMS           Sec. 1955.001.  DEFINITIONS. In this chapter:                 (1)  "Claimant" means:                       (A)  an insured making a first-party claim; or                       (B)     an individual who has a claim for property   damage or an injury against another individual or an entity.                 (2)  "Injury" means a bodily or psychological injury.                 (3)     "Oral release" means an oral contract under which   a claimant releases, wholly or partly, one or more of the claimant's   claims arising out of property damage or an injury for which an   insurer may be liable under an automobile insurance policy in   exchange for money or other consideration paid.           Sec.   1955.002.     APPLICABILITY OF CHAPTER. This chapter   applies to an insurer writing personal or commercial automobile   insurance in this state, including an insurance company,   corporation, reciprocal or interinsurance exchange, mutual   insurance company, county mutual insurance company, association,   Lloyd's plan, or other insurer.           Sec.   1955.003.     ORAL RELEASE OF CLAIMS PROHIBITED.   Notwithstanding Section 26.01, Business & Commerce Code, a claimant   and an insurer or another individual or entity may not enter into an   oral release for claims arising out of property damage or an injury   for which an insurer may be liable under an automobile insurance   policy. A release made in exchange for money or other consideration   paid for the claimant's claim arising out of property damage or an   injury for which an insurer may be liable under an automobile   insurance policy is not enforceable unless the contract is a   separate written agreement.          SECTION 2.  The changes in law made by this Act apply only to   a contract entered into on or after January 1, 2026. A contract   entered into before January 1, 2026, 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 3.  This Act takes effect September 1, 2025.