78R1232 DLF-D

By:  Jackson                                                      S.B. No. 1350

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 person or facility or to use a particular brand, type, kind, age, vendor, supplier, or condition of parts or products. A violation of this subsection is an unfair and deceptive act or practice in the business of insurance for purposes of Article 21.21 of this code. 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.