Amend CSSB 14 by adding the following new sections to the
bill, numbered appropriately, and renumbering existing sections of
the bill appropriately:
Section _____. Article 5.07-1(b), Insurance Code, is amended
to read as follows:
(b) In connection with the repair damage to a motor vehicle
covered under an auto insurance policy, and insurer, an employee of
insurer, an agent of an insurer, a solicitor of insurance for an
insurer, an insurance adjuster, or an entity that employs an
insurance adjuster may not:
(2) state or suggest, either orally or in writing, to a
beneficiary that a specific repair person or facility or a repair
person or facility identified on a preferred list compiled by an
insurer must be used by a beneficiary in order for the damage repair
or parts replacement to be covered by the policy; or
Section _____. Article 5.07-1(g), Insurance Code, is amended
to read as follows:
(g) In the settlement of liability claims by a third-party
against an insured for property damage claimed by the third-party,
an insurer may not require the third-party claimant to have repairs
made by a particular repair personsperson or facilities
facility or to use a particular brand, type, kind, age, vendor,
supplier, or condition of parts or products. This subsection does
not prohibit an insurer from referring a third-party claimant to
particular repair persons or facilities or recommending the use of
a particular brand, type, kind, age, vendor, supplier, or condition
of parts or products if the third-party claimant solicits this
information. A third-party claimant may bring an action to recover
damages for a violation of this subsection. A third-party claimant
who prevails is an action under this subsection is entitled to
recover:
(1) the claimant's actual damages, not to exceed $5,000;
(2) attorney's fees as described by Chapter 38, Civil
Practice and Remedies Code; and
(3) court costs.
Section ____. This Act applies only to a violation of Article
5.07-1(b) or 5.07-1(g), Insurance Code, as amended by this Act,
that occurs or after the effective date of this Act. A violation of
Article 5.07-1(b) or 5.07-1(g), Insurance Code, that occurs before
the effective date of this Act is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for this purpose.