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A BILL TO BE ENTITLED
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AN ACT
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relating to insurer restrictions and duties regarding repair of a |
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motor vehicle covered under an insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1952.301, Insurance Code, is amended to |
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read as follows: |
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Sec. 1952.301. LIMITATIONS AND DUTIES REGARDING REPAIR OF |
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MOTOR VEHICLE[LIMITATION ON PARTS, PRODUCTS, OR REPAIR PERSONS OR |
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FACILITIES PROHIBITED]. (a) Under [Except as provided by rules |
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adopted by the commissioner, under] an automobile insurance policy |
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that is delivered, issued for delivery, or renewed in this state, an |
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insurer may not directly or indirectly limit the insurer's coverage |
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under a policy covering damage to a motor vehicle that has an |
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unexpired manufacturer's warranty. |
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(a-1) Conduct prohibited by Subsection (a) includes [by]: |
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(1) specifying the brand, type, kind, age, vendor, |
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supplier, or condition of parts or products or the repair process |
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that may be used to repair the vehicle, unless the specified part, |
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product, or repair process is the manufacturer's warranted part, |
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product, or repair process for a motor vehicle that has an unexpired |
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manufacturer's warranty; or |
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(2) limiting the beneficiary of the policy from |
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selecting a repair person or facility to repair damage to the |
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vehicle. |
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(b) In settling a liability claim by a third party against |
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an insured for property damage claimed by the third party, an |
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insurer may not require the third-party claimant to have motor |
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vehicle repairs made by a particular repair person or facility or to |
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use a particular brand, type, kind, age, vendor, supplier, or |
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condition of parts or products or a particular repair process, |
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unless the part, product, or repair process is the manufacturer's |
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warranted part, product, or repair process for a motor vehicle that |
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has an unexpired manufacturer's warranty; or |
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(c) If a covered repair to a third party's or the insured's |
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motor vehicle requires an original equipment manufacturer's part or |
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product that is no longer manufactured, the insurer shall use the |
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insurer's best efforts to ensure the repair can be made using the |
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necessary part or product along with any necessary repair process |
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to restore the motor vehicle to the vehicle's pre-damaged |
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condition. |
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SECTION 2. The change in law made by this Act applies only |
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to an insurance policy that is delivered, issued for delivery, or |
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renewed on or after January 1, 2022. A policy delivered, issued for |
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delivery, or renewed before that date is governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2021. |