88R6516 CJD-F
 
  By: Capriglione, Oliverson H.B. No. 1656
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the payment of deductibles under automobile insurance
  policies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 27.02(a), (b), and (c), Business &
  Commerce Code, are amended to read as follows:
         (a)  In this section:
               (1)  "Automobile insurance policy" means an insurance
  policy issued by an insurer, including a county mutual insurance
  company, Lloyd's plan, or reciprocal or interinsurance exchange,
  that provides first-party coverage for loss of or damage to an
  automobile.
               (2)  "Property [, "property] insurance policy" has the
  meaning assigned by Section 707.001, Insurance Code.
         (b)  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 or automobile 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 or automobile insurance policy to pay any
  deductible applicable to a claim made under the policy.  It is a
  violation of Texas law for a seller of goods or services who
  reasonably expects to be paid wholly or partly from the proceeds of
  a property or automobile insurance claim to knowingly allow the
  insured person to fail to pay, or assist the insured person's
  failure to pay, the applicable insurance deductible."
         (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 or automobile 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 or automobile 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 or automobile 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.  (a) Section 27.02, Business & Commerce Code, as
  amended by this Act, 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 subsection, an
  offense was committed before the effective date of this Act if any
  element of the offense occurred before that date.
         (b)  Section 27.02(b), Business & Commerce Code, as amended
  by this Act, applies only to a contract entered into on or after the
  effective date of this Act. A contract entered into 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 3.  This Act takes effect September 1, 2023.