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A BILL TO BE ENTITLED
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AN ACT
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relating to insurer restrictions regarding repair of a motor |
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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. Section 1952.301(a), Insurance Code, is amended |
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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) specifying the brand, type, kind, age, vendor, |
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supplier, or condition of parts or products that may be used to |
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repair the vehicle; [or] |
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(2) specifying maximum labor charges for the repair of |
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the vehicle; or |
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(3) limiting the beneficiary of the policy to [from] |
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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. Section 1952.304, Insurance Code, is amended to |
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read as follows: |
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Sec. 1952.304. PROVISION OF INFORMATION REGARDING REPAIRS. |
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(a) At the time a motor vehicle is presented to an insurer, |
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insurance adjuster, or other person in connection with a claim for |
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damage repair, the insurer shall provide the claimant with written |
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notice describing the insurer's policies and procedures for repair |
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processes and claims payments for direct repair facilities and |
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nondirect repair facilities. The notice must include an |
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explanation of how the insurer's policies and procedures for repair |
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processes and claims payments for direct repair facilities and |
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nondirect repair facilities differ. |
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(b) An insurer may not prohibit a repair person or facility |
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from providing a beneficiary or third-party claimant with |
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information that states: |
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(1) the description, manufacturer, or source of the |
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parts used; and |
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(2) the amounts charged to the insurer for the parts |
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and related labor. |
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(c) The commissioner may adopt rules establishing the |
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method or methods insurers must use to comply with this section. |
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SECTION 3. Subchapter G, Chapter 1952, Insurance Code, is |
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amended by adding Sections 1952.308 and 1952.309 to read as |
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follows: |
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Sec. 1952.308. APPLICABILITY OF SUBCHAPTER. This |
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subchapter applies to an insurer authorized to write automobile |
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insurance in this state, including an insurance company, reciprocal |
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or interinsurance exchange, mutual insurance company, capital |
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stock company, county mutual insurance company, Lloyd's plan, or |
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other entity. |
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Sec. 1952.309. DISCLOSURE TO AUTOMOBILE REPAIR FACILITY. |
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An insurer must provide an automobile repair facility that submits |
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a written request with a written disclosure explaining the |
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requirements to become a contracted direct repair facility with |
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that insurer not later than the 30th day after the date the insurer |
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receives the request. |
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SECTION 4. (a) Section 1952.301, Insurance Code, as |
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amended by this Act, applies only to an automobile insurance policy |
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delivered, issued for delivery, or renewed on or after the |
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effective date of this Act. A policy delivered, issued for |
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delivery, or renewed before the effective date of this Act is |
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governed by the law as it existed immediately before that date, and |
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that law is continued in effect for that purpose. |
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(b) To the extent Section 1952.301, Insurance Code, as |
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amended by this Act, applies to an insurer under Section 1952.308, |
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Insurance Code, as added by this Act, to whom Section 1952.301 did |
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not apply immediately before the effective date of this Act, |
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Section 1952.301 applies only to a policy delivered, issued for |
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delivery, or renewed by the insurer on or after the effective date |
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of this Act. A policy delivered, issued for delivery, or renewed by |
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the insurer before the effective date of this Act is governed by the |
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law in effect immediately before the effective date of this Act, and |
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the former law is continued in effect for that purpose. |
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(c) To the extent Section 1952.303, Insurance Code, applies |
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to an insurer under Section 1952.308, Insurance Code, as added by |
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this Act, to whom Section 1952.303 did not apply immediately before |
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the effective date of this Act, Section 1952.303 applies only to a |
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contract entered into by the insurer on or after the effective date |
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of this Act. A contract entered into by the insurer before the |
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effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2011. |