Bill Text: TX HB3804 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to certain insurance practices with respect to repair of motor vehicles.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-05-09 - Placed on General State Calendar [HB3804 Detail]
Download: Texas-2017-HB3804-Comm_Sub.html
85R25168 PMO-F | |||
By: Clardy, Muñoz, Jr. | H.B. No. 3804 | ||
Substitute the following for H.B. No. 3804: | |||
By: Phillips | C.S.H.B. No. 3804 |
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relating to certain insurance practices with respect to repair of | ||
motor vehicles. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter G, Chapter 1952, Insurance Code, is | ||
amended by adding Section 1952.300 to read as follows: | ||
Sec. 1952.300. DEFINITIONS. (a) In this subchapter, | ||
"estimating system" means an automobile collision damage | ||
estimating system that is generally accepted by the automobile | ||
repair industry for use in writing an automobile repair estimate. | ||
(b) In this subchapter, "repair person or facility" does not | ||
include a person who exclusively provides automobile glass | ||
replacement, glass repair services, or glass products. | ||
SECTION 2. Section 1952.301, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1952.301. LIMITATION ON PARTS, PRODUCTS, OR REPAIR | ||
PERSONS OR FACILITIES PROHIBITED. (a) Except as provided by rules | ||
adopted by the commissioner, under an automobile insurance policy | ||
that is delivered, issued for delivery, or renewed in this state, an | ||
insurer may not directly or indirectly limit the insurer's coverage | ||
under a policy covering damage to a motor vehicle by[ |
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[ |
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supplier, or condition of parts or products that may be used to | ||
repair the vehicle. [ |
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(a-1) Under an automobile insurance policy that is | ||
delivered, issued for delivery, or renewed in this state, an | ||
insurer, an employee or agent of an insurer, an insurance adjuster, | ||
or an entity that employs an insurance adjuster may not directly or | ||
indirectly limit the insurer's coverage under a policy covering | ||
damage to a motor vehicle by: | ||
(1) [ |
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selecting a repair person or facility to repair damage to the | ||
vehicle to the vehicle's condition before the damage occurred in | ||
order for the beneficiary to obtain the repair without owing any | ||
out-of-pocket cost other than the deductible; | ||
(2) intimidating, coercing, or threatening the | ||
beneficiary to induce the beneficiary to use a particular repair | ||
person or facility; or | ||
(3) offering an incentive or inducement, other than a | ||
warranty issued by the insurer or a repair person or facility, for | ||
the beneficiary to use a particular repair person or facility. | ||
(b) In settling a liability claim by a third party against | ||
an insured for property damage claimed by the third party, an | ||
insurer, an employee or agent of an insurer, an insurance adjuster, | ||
or an entity that employs an insurance adjuster may not: | ||
(1) require the third-party claimant to have repairs | ||
made by a particular repair person or facility; [ |
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(2) require the third-party claimant to use a | ||
particular brand, type, kind, age, vendor, supplier, or condition | ||
of parts or products to repair damage to the vehicle to the | ||
vehicle's condition before the damage occurred; | ||
(3) intimidate, coerce, or threaten the third-party | ||
claimant to induce the claimant to use a particular repair person or | ||
facility; or | ||
(4) offer an incentive or inducement, other than a | ||
warranty issued by the insurer or a repair person or facility, for | ||
the third-party claimant to use a particular repair person or | ||
facility. | ||
SECTION 3. Section 1952.302, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1952.302. PROHIBITED ACTS IN CONNECTION WITH REPAIR OF | ||
MOTOR VEHICLE. In connection with the repair of damage to a motor | ||
vehicle covered under an automobile insurance policy, an insurer, | ||
an employee or agent of an insurer, an insurance adjuster, or an | ||
entity that employs an insurance adjuster may not: | ||
(1) solicit or accept a referral fee or gratuity in | ||
exchange for referring a beneficiary or third-party claimant to a | ||
repair person or facility to repair the damage; | ||
(2) state or suggest, either orally or in writing, to a | ||
beneficiary that the beneficiary must use a specific repair person | ||
or facility or a repair person or facility identified on a preferred | ||
list compiled by an insurer for the damage repair or parts | ||
replacement to be covered by the policy; [ |
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(3) restrict the right of a beneficiary or third-party | ||
claimant to choose a repair person or facility by requiring the | ||
beneficiary or third-party claimant to travel a [ |
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distance considered inconvenient by a beneficiary or third-party | ||
claimant to repair the damage; or | ||
(4) disregard a repair operation or cost identified by | ||
an estimating system, including the system's procedural pages, | ||
selected by the insurer for use in writing the automobile repair | ||
estimate for the motor vehicle. | ||
SECTION 4. The change in law made by this Act applies only | ||
to an insurance policy that is delivered, issued for delivery, or | ||
renewed on or after January 1, 2018. A policy delivered, issued for | ||
delivery, or renewed before that date 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 5. This Act takes effect September 1, 2017. |