SB1042 —

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends the Texas statutes.

• CHAPTER 1955. ORAL RELEASES FOR AUTOMOBILE INSURANCE CLAIMS Sec. 1955.001. DEFINITIONS. In this chapter: (1) "Claimant" means 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. 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 in writing.

  amended