Bill Text: TX HB2102 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the payment of insurance deductibles related to property insurance policies; creating a criminal offense.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB2102 Detail]
Download: Texas-2019-HB2102-Introduced.html
Bill Title: Relating to the payment of insurance deductibles related to property insurance policies; creating a criminal offense.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB2102 Detail]
Download: Texas-2019-HB2102-Introduced.html
86R5237 JES-F | ||
By: Capriglione | H.B. No. 2102 |
|
||
|
||
relating to the payment of insurance deductibles related to | ||
property insurance policies; creating criminal offenses. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle F, Title 5, Insurance Code, is amended | ||
by adding Chapter 707 to read as follows: | ||
CHAPTER 707. PAYMENT OF INSURANCE DEDUCTIBLE | ||
Sec. 707.001. DEFINITIONS. In this chapter: | ||
(1) "Person" means an individual, corporation, | ||
association, partnership, limited liability company, or other | ||
legal entity. | ||
(2) "Property insurance" means insurance that | ||
provides coverage for loss of or damage to real or personal | ||
property. | ||
Sec. 707.002. PAYMENT OF DEDUCTIBLE REQUIRED. A person | ||
insured under a property insurance policy shall pay any deductible | ||
applicable to a first-party claim made under the policy. | ||
Sec. 707.003. CONSUMER EDUCATION. The department shall | ||
develop and implement an education program related to the payment | ||
of property insurance deductibles. The program must: | ||
(1) provide reasonable methods to educate insurance | ||
consumers and providers of goods or services that are regularly | ||
paid for from proceeds of property insurance claims; and | ||
(2) include materials regarding: | ||
(A) the requirements of this chapter; and | ||
(B) the conduct prohibited by Section 707.006. | ||
Sec. 707.004. REQUIRED CONTRACT NOTICE. A contract to | ||
provide a good or service that is reasonably expected to be paid | ||
wholly or partly from the proceeds of a claim under a property | ||
insurance policy and that has a contract price of $1,000 or more | ||
must contain the following notice in at least 12-point boldfaced | ||
type: "Texas law requires a person insured under a property | ||
insurance policy to pay any deductible applicable to a claim made | ||
under the policy. It is a violation of Texas law for a person or | ||
business paid wholly or partly from proceeds of a property | ||
insurance claim to knowingly allow the policyholder to fail to pay, | ||
or assist the policyholder's failure to pay, the applicable | ||
insurance deductible." | ||
Sec. 707.005. PROOF OF PAYMENT. (a) This section applies | ||
to any insurer that issues a policy providing coverage for loss of | ||
or damage to real or personal property, including a county mutual | ||
insurance company, a farm mutual insurance company, a reciprocal or | ||
interinsurance exchange, or a Lloyd's plan. | ||
(b) An insurer that issues a property insurance policy with | ||
replacement cost coverage may refuse to pay a claim for replacement | ||
cost under the policy until the insurer receives reasonable proof | ||
of payment by the policyholder of any deductible applicable to the | ||
claim. | ||
Sec. 707.006. OFFENSES. (a) A person who sells goods or | ||
services commits an offense if the person: | ||
(1) advertises or promises to provide a good or | ||
service to an insured under a property insurance policy in a | ||
transaction in which: | ||
(A) the good or service will be paid for by the | ||
insured from the proceeds of a property insurance claim; and | ||
(B) the person selling the good or service will, | ||
without the insurer's consent: | ||
(i) pay, waive, absorb, or otherwise | ||
decline to charge or collect the amount of the insured's | ||
deductible; | ||
(ii) provide a rebate or credit in | ||
connection with the sale of the good or service that will offset all | ||
or part of the amount paid by the insured as a deductible; or | ||
(iii) in any other manner assist the | ||
insured in avoiding monetary payment of the required insurance | ||
deductible; or | ||
(2) provides a good or service to an insured under a | ||
property insurance policy knowing that the insured will pay for the | ||
good or service with the proceeds of a claim under the policy and, | ||
without the insurer's consent: | ||
(A) pays, waives, absorbs, or otherwise declines | ||
to charge or collect the amount of the insured's deductible; | ||
(B) provides a rebate or credit in connection | ||
with the sale of the good or service that offsets all or part of the | ||
amount paid by the insured as a deductible; or | ||
(C) in any other manner assists the insured in | ||
avoiding monetary payment of the required insurance deductible. | ||
(b) A person insured under a property insurance policy | ||
commits an offense if the person, in connection with a first-party | ||
claim under the policy for loss of or damage to real or personal | ||
property, knowingly: | ||
(1) pays for a good or service with proceeds of the | ||
claim; and | ||
(2) without the insurer's consent: | ||
(A) fails to pay a required insurance deductible | ||
in connection with the claim; or | ||
(B) accepts a rebate or credit in connection with | ||
the purchase that offsets all or part of the amount paid by the | ||
insured as a deductible. | ||
(c) An offense under this section is a Class A misdemeanor. | ||
SECTION 2. Section 27.02, Business & Commerce Code, is | ||
repealed. | ||
SECTION 3. The repeal by this Act of Section 27.02, Business & | ||
Commerce Code, applies only to an offense committed on or after | ||
the effective date of this Act. An offense committed before the | ||
effective date of this Act is governed by the law in effect on the | ||
date the offense was committed, and the former law is continued in | ||
effect for that purpose. For purposes of this section, an offense | ||
was committed before the effective date of this Act if any element | ||
of the offense occurred before that date. | ||
SECTION 4. Section 707.004, Insurance Code, as added by | ||
this Act, applies only to a contract entered into on or after the | ||
effective date of this Act. | ||
SECTION 5. This Act takes effect September 1, 2019. |