HB3969 - Relating to disclosures by liability insurers and policyholders to third-party claimants; providing an administrative penalty.

      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.