85R10541 LED-F
 
  By: Clardy H.B. No. 3804
 
 
 
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.