78R8799 DLF-D
By: Talton H.B. No. 302
Substitute the following for H.B. No. 302:
By: Van Arsdale C.S.H.B. No. 302
A BILL TO BE ENTITLED
AN ACT
relating to settlement of certain liability claims under an auto
insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 persons [person] 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 in 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 2. This Act applies only to a violation of Article
5.07-1(g), Insurance Code, as amended by this Act, that occurs on or
after the effective date of this Act. A violation of Article
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.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.