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A BILL TO BE ENTITLED
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AN ACT
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relating to certain agreements between insurers, policyholders, |
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and motor vehicle storage persons or facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1952.302, Insurance Code, is amended to |
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read as follows: |
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Sec. 1952.302. PROHIBITED ACTS IN CONNECTION WITH REPAIR OF |
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MOTOR VEHICLE; EXCEPTIONS. (a) In connection with the repair of |
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damage to a motor vehicle covered under an automobile insurance |
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policy, an insurer, an employee or agent of an insurer, an insurance |
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adjuster, or an entity that employs an insurance adjuster may not: |
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(1) solicit or accept a referral fee or gratuity in |
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exchange for referring a beneficiary or third-party claimant to a |
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repair person or facility to repair the damage; |
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(2) state or suggest, either orally or in writing, to a |
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beneficiary that the beneficiary must use a specific repair person |
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or facility or a repair person or facility identified on a preferred |
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list compiled by an insurer for the damage repair or parts |
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replacement to be covered by the policy; or |
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(3) restrict the right of a beneficiary or third-party |
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claimant to choose a repair person or facility by requiring the |
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beneficiary or third-party claimant to travel an unreasonable |
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distance to repair the damage. |
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(b) Notwithstanding Subsection (a), an employee or agent of |
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an insurer, an insurance adjuster, or an entity that employs an |
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insurance adjuster may request that a vehicle covered under an |
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automobile insurance policy that is involved in an accident be |
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taken to a state licensed vehicle storage facility, as a temporary |
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insurance holding lot, that is not owned or operated by the insurer |
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or vehicle repair facility. The operator of such vehicle storage |
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facility shall be required to post a surety bond in an amount not |
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less than $500,000.00 for the protection of vehicle owners. |
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(c) If the beneficiary of the policy agrees to use the |
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repair facility selected under Subsection (b), the insurer may |
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require that the policyholder and insurer mutually: |
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(1) determine whether the insured vehicle may be |
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repaired or totaled; and |
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(2) if the vehicle is to be repaired, agree on a repair |
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person or facility for the repair of the vehicle. |
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(d) The insurer shall notify the insurer's |
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policyholder and the police department of the jurisdiction in which |
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the accident occurred of the repair facility selected under |
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Subsection (b) in the manner established by the commissioner by |
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rule. |
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SECTION 2. This Act applies only to an insurance policy or |
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contract that is delivered, issued for delivery, or renewed on or |
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after January 1, 2010. An insurance policy or contract delivered, |
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issued for delivery, or renewed before January 1, 2010, is governed |
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by the law as it existed immediately before the effective date of |
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this Act, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |