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Section 1. Amend HB 1131 on page 1 by striking line 17 and 18
and replacing with the following:
Sec. 2306.002. INSURER INTEREST. An insurer may not hold or
acquire interest in a repair facility without disclosing such
ownership interest.
Section 2. Amend HB 1131 on page 1 by striking line 19 on page
1 through line 27 on page 2 and inserting the following sections:
Sec. 2306.003. PROHIBITION. An insurer that has any ownership
interest in a repair facility may not:
(a) state or suggest, either orally or in writing, to a
beneficiary that a repair facility in which the insurer has any
ownership interest must be used by a beneficiary in order for the
damage repair or parts replacement to be covered by the policy; or
(b) in a settlement of liability claims by a third-party
against an insured for property damage claimed by the third-party,
require the third-party claimant to have repairs made by a repair
facility in which the insurer had any ownership interest.
Sec. 2306.004. PENALTY. Any person alleging any actual
damages caused by an insurer's violation of this chapter shall
first file a complaint setting forth a claim for damages with the
Department of Insurance. The department shall have ninety (90)
business days to take action upon this complaint. If the department
does not take action within ninety (90) business day, a third-party
claimant may bring an action to recover damages for a violation of
this chapter. A third-party claimant who prevails in an action
under this subsection is entitled to recover:
(1) the claimant's actual damages, not to exceed $5000;
(2) attorney's fees as described by Chapter 38, Civil
Practice and Remedies Code; and
(3) court costs.
Section 3. The effective date of this Act is September 1,
2003.