Enrolled Bill Summary

            House Bill 423 amends the Insurance Code to require insurance companies to provide notice of information relating to the rights of the insured regarding repair of motor vehicles. The act provides that it is unacceptable for insurers to receive compensation for a repair referral, to specify, whether on a preferred list or not, who will make the repairs, and to restrict a consumer's right of choice by requiring unreasonable travel to repair damage. The contracts between insurers and repair persons or repair facilities cannot result in a reduction in coverage under the insured's auto insurance policy. The act provides that any person, including a repair person or facility, can complain to the Texas Department of Insurance on behalf of a claimant. Persons who violate the act are subject to disciplinary action by the department.