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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment of insurance deductibles for property |
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insurance claims. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 27.02(c), Business & Commerce Code, is |
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amended to read as follows: |
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(c) A person who sells goods or services commits an offense |
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if the person: |
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(1) advertises or promises to provide a good or |
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service to an insured under a property insurance policy in a |
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transaction in which: |
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(A) the good or service will be paid for by the |
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insured from the proceeds of a property insurance claim; and |
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(B) the person selling the good or service will[, |
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without the insurer's consent]: |
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(i) pay, waive, absorb, or otherwise |
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decline to charge or collect the amount of the insured's |
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deductible; |
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(ii) provide a rebate or credit in |
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connection with the sale of the good or service that will offset all |
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or part of the amount paid by the insured as a deductible; or |
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(iii) in any other manner assist the |
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insured in avoiding monetary payment of the required insurance |
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deductible; or |
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(2) provides a good or service to an insured under a |
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property insurance policy knowing that the insured will pay for the |
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good or service with the proceeds of a claim under the policy and[, |
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without the insurer's consent]: |
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(A) pays, waives, absorbs, or otherwise declines |
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to charge or collect the amount of the insured's deductible; |
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(B) provides a rebate or credit in connection |
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with the sale of the good or service that offsets all or part of the |
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amount paid by the insured as a deductible; or |
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(C) in any other manner assists the insured in |
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avoiding monetary payment of the required insurance deductible. |
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SECTION 2. Section 707.004, Insurance Code, is amended to |
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read as follows: |
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Sec. 707.004. [REASONABLE PROOF OF] PAYMENT OF DEDUCTIBLE. |
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(a) An insurer that issues a property insurance policy with |
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replacement cost coverage shall [may] refuse to pay a claim for |
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withheld recoverable depreciation or a replacement cost holdback |
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under the policy until the insurer receives reasonable proof of |
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payment by the policyholder of any deductible applicable to the |
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claim. Reasonable proof of payment includes a canceled check, |
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money order receipt, credit card statement, or copy of an executed |
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installment plan contract or other financing arrangement that |
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requires full payment of the deductible over time. This subsection |
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does not prohibit an insurer from waiving any deductible amount. |
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(b) An insurer waiving a deductible owed by a policyholder |
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under a property insurance policy for any reason may not require as |
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a condition the policyholder's use of the insurer's preferred or |
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recommended contractor for the claim subject to the deductible. |
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SECTION 3. Section 707.004, Insurance Code, as amended by |
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this Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after the effective date of this Act. A |
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policy delivered, issued for delivery, or renewed before the |
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effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2023. |