| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to certain insurance practices with respect to repair of |
|
|
motor vehicles. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter G, Chapter 1952, Insurance Code, is |
|
|
amended by adding Section 1952.300 to read as follows: |
|
|
Sec. 1952.300. DEFINITIONS. (a) In this subchapter, |
|
|
"estimating system" means an automobile collision damage |
|
|
estimating system that is generally accepted by the automobile |
|
|
repair industry for use in writing an automobile repair estimate. |
|
|
(b) In this subchapter, "repair person or facility" does not |
|
|
include a person who exclusively provides automobile glass |
|
|
replacement, glass repair services, or glass products. |
|
|
SECTION 2. Section 1952.301, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 1952.301. LIMITATION ON PARTS, PRODUCTS, OR REPAIR |
|
|
PERSONS OR FACILITIES PROHIBITED. (a) Except as provided by rules |
|
|
adopted by the commissioner, under an automobile insurance policy |
|
|
that is delivered, issued for delivery, or renewed in this state, an |
|
|
insurer may not directly or indirectly limit the insurer's coverage |
|
|
under a policy covering damage to a motor vehicle by[:
|
|
|
[(1)] specifying the brand, type, kind, age, vendor, |
|
|
supplier, or condition of parts or products that may be used to |
|
|
repair the vehicle. [; or] |
|
|
(a-1) Under an automobile insurance policy that is |
|
|
delivered, issued for delivery, or renewed in this state, an |
|
|
insurer, an employee or agent of an insurer, an insurance adjuster, |
|
|
or an entity that employs an insurance adjuster may not directly or |
|
|
indirectly limit the insurer's coverage under a policy covering |
|
|
damage to a motor vehicle by: |
|
|
(1) [(2)] limiting the beneficiary of the policy from |
|
|
selecting a repair person or facility to repair damage to the |
|
|
vehicle; |
|
|
(2) intimidating, coercing, or threatening the |
|
|
beneficiary to induce the beneficiary to use a particular repair |
|
|
person or facility; or |
|
|
(3) offering an incentive or inducement, other than |
|
|
the list described by Section 1952.309 or a warranty issued by a |
|
|
repair person or facility, for the beneficiary to use a particular |
|
|
repair person or facility. |
|
|
(b) In settling a liability claim by a third party against |
|
|
an insured for property damage claimed by the third party, an |
|
|
insurer, an employee or agent of an insurer, an insurance adjuster, |
|
|
or an entity that employs an insurance adjuster may not: |
|
|
(1) require the third-party claimant to have repairs |
|
|
made by a particular repair person or facility; [or] |
|
|
(2) require the third-party claimant to use a |
|
|
particular brand, type, kind, age, vendor, supplier, or condition |
|
|
of parts or products; |
|
|
(3) intimidate, coerce, or threaten the third-party |
|
|
claimant to induce the claimant to use a particular repair person or |
|
|
facility; or |
|
|
(4) offer an incentive or inducement, other than the |
|
|
list described by Section 1952.309 or a warranty issued by a repair |
|
|
person or facility, for the third-party claimant to use a |
|
|
particular repair person or facility. |
|
|
SECTION 3. Section 1952.302, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 1952.302. PROHIBITED ACTS IN CONNECTION WITH REPAIR OF |
|
|
MOTOR VEHICLE. (a) In connection with the repair of damage to a |
|
|
motor vehicle covered under an automobile insurance policy, an |
|
|
insurer, an employee or agent of an insurer, an insurance adjuster, |
|
|
or an entity that employs an insurance adjuster may not: |
|
|
(1) solicit or accept a referral fee or gratuity in |
|
|
exchange for referring a beneficiary or third-party claimant to a |
|
|
repair person or facility to repair the damage; |
|
|
(2) state or suggest, either orally or in writing, to a |
|
|
beneficiary that the beneficiary must use a specific repair person |
|
|
or facility or a repair person or facility identified on a preferred |
|
|
list compiled by an insurer for the damage repair or parts |
|
|
replacement to be covered by the policy; [or] |
|
|
(3) restrict the right of a beneficiary or third-party |
|
|
claimant to choose a repair person or facility by requiring the |
|
|
beneficiary or third-party claimant to travel an unreasonable |
|
|
distance to repair the damage; |
|
|
(4) disregard a repair operation or cost identified by |
|
|
an estimating system that was previously agreed on by the insurer |
|
|
and the repair person or facility to determine the cost of repair; |
|
|
or |
|
|
(5) refuse to pay the reasonable and necessary cost of |
|
|
a repair operation for covered damages less any portion of the cost |
|
|
that is the insured's responsibility under the policy. |
|
|
(b) For purposes of Subsection (a)(5), the cost of a repair |
|
|
operation is reasonable and necessary if the repair operation and |
|
|
its cost are in accordance with an estimating system that is |
|
|
recognized by the commissioner. |
|
|
SECTION 4. Subchapter G, Chapter 1952, Insurance Code, is |
|
|
amended by adding Sections 1952.308, 1952.309, and 1952.310 to read |
|
|
as follows: |
|
|
Sec. 1952.308. INSURER ACCESS TO MOTOR VEHICLE. If a |
|
|
beneficiary or third-party claimant makes a claim seeking repair of |
|
|
an automobile, the insurer, including the insurer's agent or |
|
|
broker, may have access to the automobile to prepare a competitive |
|
|
estimate. |
|
|
Sec. 1952.309. LIST OF REPAIR PERSONS AND FACILITIES. (a) |
|
|
Upon request, an insurer shall provide, without prejudice or bias, |
|
|
to a beneficiary or third-party claimant a list of all repair |
|
|
persons and facilities that: |
|
|
(1) are reasonably close or convenient to the |
|
|
beneficiary or third-party claimant; |
|
|
(2) agree to perform quality repairs that meet |
|
|
reasonable industry repair standards; and |
|
|
(3) agree to provide a warranty for the quality of |
|
|
work, including refinishing, in writing to the beneficiary or |
|
|
third-party claimant, for a period of not less than one year from |
|
|
the date of repair. |
|
|
(b) If a beneficiary or third-party claimant requests a list |
|
|
under Subsection (a), the insurer shall notify the beneficiary or |
|
|
claimant that the beneficiary or claimant may select a repair |
|
|
person or facility at the sole discretion of the beneficiary or |
|
|
claimant. |
|
|
Sec. 1952.310. IMMUNITY FROM LIABILITY. An insurer is not |
|
|
liable for damages arising from the work performed by a repair |
|
|
person or facility selected by the beneficiary or third-party |
|
|
claimant. |
|
|
SECTION 5. The change in law made by this Act applies only |
|
|
to an insurance policy that is delivered, issued for delivery, or |
|
|
renewed on or after January 1, 2018. A policy delivered, issued for |
|
|
delivery, or renewed before that date is governed by the law as it |
|
|
existed immediately before the effective date of this Act, and that |
|
|
law is continued in effect for that purpose. |
|
|
SECTION 6. This Act takes effect September 1, 2017. |