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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibition of certain insurer restrictions regarding |
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repair of a motor vehicle covered under an insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 1952.301, Insurance |
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Code, is amended to read as follows: |
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(a) Except as provided by rules adopted by the commissioner, |
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under an automobile insurance policy that is delivered, issued for |
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delivery, or renewed in this state, an insurer may not directly or |
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indirectly [limit the insurer's coverage under a policy covering
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damage to a motor vehicle by]: |
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(1) specify [specifying] the brand, type, kind, age, |
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vendor, supplier, or condition of parts or products that may be used |
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to repair the vehicle; or |
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(2) limit [limiting] the beneficiary of the policy to |
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[from] selecting a repair person or facility to repair damage to the |
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vehicle from a list provided to the beneficiary by the insurer. |
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SECTION 2. Subsection (a), Section 1952.303, Insurance |
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Code, is amended to read as follows: |
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(a) A contract between an insurer and a repair person or |
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repair facility may not include[, including] an agreement under |
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which the repair person or facility agrees to extend discounts for |
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parts or labor to the insurer in exchange for referrals by the |
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insurer[, may not result in a reduction of coverage under an
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insured's automobile insurance policy]. |
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SECTION 3. This Act applies only to an automobile insurance |
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policy delivered, issued for delivery, or renewed on or after |
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January 1, 2008. A policy delivered, issued for delivery, or |
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renewed before January 1, 2008, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 4. The change in law made by this Act to Subsection |
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(a), Section 1952.303, Insurance Code, applies only to a contract |
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entered into on or after the effective date of this Act. A contract |
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entered into before the effective date of this Act is governed by |
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the law in effect immediately before that date, and that law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2007. |
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