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A BILL TO BE ENTITLED
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AN ACT
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relating to certain insurance practices with respect to repair of |
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motor vehicles. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 1952, Insurance Code, is |
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amended by adding Section 1952.300 to read as follows: |
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Sec. 1952.300. DEFINITIONS. (a) In this subchapter, |
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"estimating system" means an automobile collision damage |
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estimating system that is generally accepted by the automobile |
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repair industry for use in writing an automobile repair estimate. |
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(b) In this subchapter, "repair person or facility" does not |
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include a person who exclusively provides automobile glass |
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replacement, glass repair services, or glass products. |
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SECTION 2. Section 1952.301, Insurance Code, is amended to |
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read as follows: |
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Sec. 1952.301. LIMITATION ON PARTS, PRODUCTS, OR REPAIR |
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PERSONS OR FACILITIES PROHIBITED. (a) Except as provided by rules |
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adopted by the commissioner, under an automobile insurance policy |
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that is delivered, issued for delivery, or renewed in this state, an |
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insurer may not directly or indirectly limit the insurer's coverage |
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under a policy covering 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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(a-1) Under an automobile insurance policy that is |
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delivered, issued for delivery, or renewed in this state, an |
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insurer, an employee or agent of an insurer, an insurance adjuster, |
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or an entity that employs an insurance adjuster 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) [(2)] limiting the beneficiary of the policy from |
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selecting a repair person or facility to repair damage to the |
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vehicle to the vehicle's condition before the damage occurred in |
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order for the beneficiary to obtain the repair without owing any |
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out-of-pocket cost other than the deductible; |
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(2) intimidating, coercing, or threatening the |
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beneficiary to induce the beneficiary to use a particular repair |
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person or facility; or |
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(3) offering an incentive or inducement, other than a |
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warranty issued by the insurer or a repair person or facility, for |
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the beneficiary to use a particular repair person or facility. |
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(b) In settling a liability claim by a third party against |
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an insured for property damage claimed by the third party, an |
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insurer, an employee or agent of an insurer, an insurance adjuster, |
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or an entity that employs an insurance adjuster may not: |
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(1) require the third-party claimant to have repairs |
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made by a particular repair person or facility; [or] |
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(2) require the third-party claimant to use a |
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particular brand, type, kind, age, vendor, supplier, or condition |
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of parts or products to repair damage to the vehicle to the |
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vehicle's condition before the damage occurred; |
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(3) intimidate, coerce, or threaten the third-party |
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claimant to induce the claimant to use a particular repair person or |
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facility; or |
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(4) offer an incentive or inducement, other than a |
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warranty issued by the insurer or a repair person or facility, for |
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the third-party claimant to use a particular repair person or |
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facility. |
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SECTION 3. 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. In connection with the repair of damage to a motor |
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vehicle covered under an automobile insurance policy, an insurer, |
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an employee or agent of an insurer, an insurance adjuster, or an |
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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 a [an unreasonable] |
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distance considered inconvenient by a beneficiary or third-party |
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claimant to repair the damage; or |
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(4) disregard a repair operation or cost identified by |
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an estimating system, including the system's procedural pages, |
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selected by the insurer for use in writing the automobile repair |
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estimate for the motor vehicle. |
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SECTION 4. The change in law made by this Act applies only |
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to an insurance policy that is delivered, issued for delivery, or |
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renewed on or after January 1, 2018. A policy delivered, issued for |
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delivery, or renewed before that date is governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2017. |