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A BILL TO BE ENTITLED
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AN ACT
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relating to certain prohibited practices of third-party |
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administrators relating to automotive glass repair services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 2307, Occupations Code, |
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is amended to read as follows: |
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CHAPTER 2307. [INSURER] INTERESTS OF INSURERS AND THIRD-PARTY |
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ADMINISTRATORS IN CERTAIN [REPAIR] FACILITIES AND SERVICES; |
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PROHIBITED PRACTICES |
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SECTION 2. Section 2307.001, Occupations Code, is amended |
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by adding Subdivisions (1-a), (1-b), and (6-a) to read as follows: |
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(1-a) "Automotive glass repair service" means a person |
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that engages in the business of automotive glass work. |
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(1-b) "Automotive glass work" means the installation, |
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maintenance, or repair of fixed or moveable glass in a motor |
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vehicle. |
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(6-a) "Third-party administrator" means a person, |
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other than a person licensed or otherwise authorized to engage in |
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business under Title 13, Insurance Code, that, in connection with |
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motor vehicle insurance coverage: |
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(A) collects a charge or premium: |
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(i) from a resident of this state; or |
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(ii) paid on behalf of a resident of this |
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state; or |
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(B) provides administrative services to, or |
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inspects or settles a claim by, a resident of this state. |
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SECTION 3. Chapter 2307, Occupations Code, is amended by |
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adding Section 2307.0025 to read as follows: |
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Sec. 2307.0025. DECEPTIVE TRADE PRACTICE. (a) A |
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third-party administrator that holds at least a 10 percent |
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ownership interest in an automotive glass repair service may not: |
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(1) refer a third-party claimant or an insured to the |
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service; |
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(2) coerce a third-party claimant or an insured to use |
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the service; or |
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(3) use consumer information obtained in the process |
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of acting as a third-party administrator to solicit business for |
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the automotive glass repair service. |
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(b) A violation of this section is a false, misleading, or |
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deceptive act or practice within the meaning of Section 17.46, |
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Business & Commerce Code. |
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(c) A public or private right or remedy prescribed by |
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Chapter 17, Business & Commerce Code, may be used to enforce this |
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section. |
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SECTION 4. This Act takes effect September 1, 2011. |