By: Capriglione H.B. No. 1433
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the payment of insurance deductibles and release of
  insurance proceeds to contractors for property insurance claims.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 27.02, Business & Commerce Code, is
  amended by amending Subsection (c) to read as follows:
         (c)  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.
         SECTION 2.  Section 707.004, Insurance Code, is amended to
  read as follows:
         Sec. 707.004.  [REASONABLE PROOF OF] PAYMENT OF DEDUCTIBLE;
  RELEASE OF PROCEEDS TO CONTRACTOR.  (a) An insurer that issues a
  property insurance policy with replacement cost coverage shall
  [may] refuse to pay a claim for withheld recoverable depreciation
  or a replacement cost holdback under the policy until the insurer
  receives reasonable proof of payment by the policyholder of any
  deductible applicable to the claim. Reasonable proof of payment
  includes a canceled check, money order receipt, credit card
  statement, or copy of an executed installment plan contract or
  other financing arrangement that requires full payment of the
  deductible over time.
         (b)  An insurer may not waive a deductible owed by a
  policyholder under a property insurance policy in exchange for the
  policyholder's use of the insurer's preferred or recommended
  contractor for the claim subject to the deductible.
         SECTION 3.  Section 707.004, Insurance Code, as amended by
  this Act, applies only to an insurance policy delivered, issued for
  delivery, or renewed on or after the effective date of this Act. A
  policy delivered, issued for delivery, or renewed before the
  effective date of this Act 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 4.  This Act takes effect September 1, 2021.