86R5237 JES-F
 
  By: Capriglione H.B. No. 2102
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the payment of insurance deductibles related to
  property insurance policies; creating criminal offenses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 5, Insurance Code, is amended
  by adding Chapter 707 to read as follows:
  CHAPTER 707. PAYMENT OF INSURANCE DEDUCTIBLE
         Sec. 707.001.  DEFINITIONS. In this chapter:
               (1)  "Person" means an individual, corporation,
  association, partnership, limited liability company, or other
  legal entity.
               (2)  "Property insurance" means insurance that
  provides coverage for loss of or damage to real or personal
  property.
         Sec. 707.002.  PAYMENT OF DEDUCTIBLE REQUIRED. A person
  insured under a property insurance policy shall pay any deductible
  applicable to a first-party claim made under the policy.
         Sec. 707.003.  CONSUMER EDUCATION. The department shall
  develop and implement an education program related to the payment
  of property insurance deductibles. The program must:
               (1)  provide reasonable methods to educate insurance
  consumers and providers of goods or services that are regularly
  paid for from proceeds of property insurance claims; and
               (2)  include materials regarding:
                     (A)  the requirements of this chapter; and
                     (B)  the conduct prohibited by Section 707.006.
         Sec. 707.004.  REQUIRED CONTRACT NOTICE. A contract to
  provide a good or service that is reasonably expected to be paid
  wholly or partly from the proceeds of a claim under a property
  insurance policy and that has a contract price of $1,000 or more
  must contain the following notice in at least 12-point boldfaced
  type: "Texas law requires a person insured under a property
  insurance policy to pay any deductible applicable to a claim made
  under the policy. It is a violation of Texas law for a person or
  business paid wholly or partly from proceeds of a property
  insurance claim to knowingly allow the policyholder to fail to pay,
  or assist the policyholder's failure to pay, the applicable
  insurance deductible."
         Sec. 707.005.  PROOF OF PAYMENT. (a)  This section applies
  to any insurer that issues a policy providing coverage for loss of
  or damage to real or personal property, including a county mutual
  insurance company, a farm mutual insurance company, a reciprocal or
  interinsurance exchange, or a Lloyd's plan.
         (b)  An insurer that issues a property insurance policy with
  replacement cost coverage may refuse to pay a claim for replacement
  cost under the policy until the insurer receives reasonable proof
  of payment by the policyholder of any deductible applicable to the
  claim.
         Sec. 707.006.  OFFENSES. (a)  A person who sells goods or
  services commits an offense if the person:
               (1)  advertises or promises to provide a good or
  service to an insured under a property insurance policy in a
  transaction in which:
                     (A)  the good or service will be paid for by the
  insured from the proceeds of a property insurance claim; and
                     (B)  the person selling the good or service will,
  without the insurer's consent:
                           (i)  pay, waive, absorb, or otherwise
  decline to charge or collect the amount of the insured's
  deductible;
                           (ii)  provide a rebate or credit in
  connection with the sale of the good or service that will offset all
  or part of the amount paid by the insured as a deductible; or
                           (iii)  in any other manner assist the
  insured in avoiding monetary payment of the required insurance
  deductible; or
               (2)  provides a good or service to an insured under a
  property insurance policy knowing that the insured will pay for the
  good or service with the proceeds of a claim under the policy and,
  without the insurer's consent:
                     (A)  pays, waives, absorbs, or otherwise declines
  to charge or collect the amount of the insured's deductible;
                     (B)  provides a rebate or credit in connection
  with the sale of the good or service that offsets all or part of the
  amount paid by the insured as a deductible; or
                     (C)  in any other manner assists the insured in
  avoiding monetary payment of the required insurance deductible.
         (b)  A person insured under a property insurance policy
  commits an offense if the person, in connection with a first-party
  claim under the policy for loss of or damage to real or personal
  property, knowingly:
               (1)  pays for a good or service with proceeds of the
  claim; and
               (2)  without the insurer's consent:
                     (A)  fails to pay a required insurance deductible
  in connection with the claim; or
                     (B)  accepts a rebate or credit in connection with
  the purchase that offsets all or part of the amount paid by the
  insured as a deductible.
         (c)  An offense under this section is a Class A misdemeanor.
         SECTION 2.  Section 27.02, Business & Commerce Code, is
  repealed.
         SECTION 3.  The repeal by this Act of Section 27.02, Business &
  Commerce Code, applies only to an offense committed on or after
  the effective date of this Act. An offense committed before the
  effective date of this Act is governed by the law in effect on the
  date the offense was committed, and the former law is continued in
  effect for that purpose. For purposes of this section, an offense
  was committed before the effective date of this Act if any element
  of the offense occurred before that date.
         SECTION 4.  Section 707.004, Insurance Code, as added by
  this Act, applies only to a contract entered into on or after the
  effective date of this Act.
         SECTION 5.  This Act takes effect September 1, 2019.