By Duncan                                              S.B. No. 987
         77R2311 ATP-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the attorney general's authority to enforce the
 1-3     prohibition on the waiver of insurance deductibles.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 27.02, Business & Commerce Code, is
 1-6     amended to read as follows:
 1-7           Sec. 27.02.  CERTAIN INSURANCE CLAIMS FOR EXCESSIVE CHARGES.
 1-8     (a)  A person who sells goods or services that are paid for by the
 1-9     consumer from the proceeds of a property or casualty insurance
1-10     policy, may not [commits an offense if]:
1-11                 (1)  advertise [the person advertises] or promise
1-12     [promises] to provide the good or service and to pay:
1-13                       (A)  all or part of any applicable insurance
1-14     deductible; or
1-15                       (B)  a rebate in an amount equal to all or part
1-16     of any applicable insurance deductible; and
1-17                 [(2)  the good or service is paid for by the consumer
1-18     from proceeds of a property or casualty insurance policy; and]
1-19                 (2) [(3)  the person] knowingly charge [charges] an
1-20     amount for the good or service that exceeds the usual and customary
1-21     charge by the person for the good or service by an amount equal to
1-22     or greater than all or part of the applicable insurance deductible
1-23     paid by the person to an insurer on behalf of an insured or
1-24     remitted to an insured by the person as a rebate.
 2-1           (b)  A person who is insured under a property or casualty
 2-2     insurance policy may not [commits an offense if the person]:
 2-3                 (1)  submit [submits] a claim under the policy based on
 2-4     charges that are in violation of Subsection (a)  of this section;
 2-5     or
 2-6                 (2)  knowingly allow [allows] a claim in violation of
 2-7     Subsection (a)  of this section to be submitted, unless the person
 2-8     promptly notifies the insurer of the excessive charges.
 2-9           (c)  A person who violates Subsection (a) or (b) commits an
2-10     offense. An offense under this section is a Class A misdemeanor.
2-11           (d)  The attorney general may request a civil penalty to be
2-12     paid to the state for a violation of this section, under its
2-13     authority to seek civil penalties under Section 17.47, in an amount
2-14     of not more than $2,000 per violation, not to exceed a total of
2-15     $10,000.
2-16           SECTION 2. This Act takes effect September 1, 2001.