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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment of deductibles under automobile insurance |
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policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 27.02(a), (b), and (c), Business & |
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Commerce Code, are amended to read as follows: |
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(a) In this section: |
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(1) "Automobile insurance policy" means an insurance |
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policy issued by an insurer, including a county mutual insurance |
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company, Lloyd's plan, or reciprocal or interinsurance exchange, |
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that provides first-party coverage for loss of or damage to an |
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automobile. |
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(2) "Property [, "property] insurance policy" has the |
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meaning assigned by Section 707.001, Insurance Code. |
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(b) A contract to provide a good or service that is |
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reasonably expected to be paid wholly or partly from the proceeds of |
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a claim under a property or automobile insurance policy and that has |
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a contract price of $1,000 or more must contain the following notice |
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in at least 12-point boldfaced type: "Texas law requires a person |
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insured under a property or automobile insurance policy to pay any |
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deductible applicable to a claim made under the policy. It is a |
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violation of Texas law for a seller of goods or services who |
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reasonably expects to be paid wholly or partly from the proceeds of |
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a property or automobile insurance claim to knowingly allow the |
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insured person to fail to pay, or assist the insured person's |
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failure to pay, the applicable insurance deductible." |
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(c) A person who sells goods or services commits an offense |
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if the person: |
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(1) advertises or promises to provide a good or |
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service to an insured under a property or automobile insurance |
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policy in a transaction in which: |
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(A) the good or service will be paid for by the |
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insured from the proceeds of a property or automobile insurance |
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claim; and |
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(B) the person selling the good or service will, |
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without the insurer's consent: |
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(i) pay, waive, absorb, or otherwise |
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decline to charge or collect the amount of the insured's |
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deductible; |
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(ii) provide a rebate or credit in |
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connection with the sale of the good or service that will offset all |
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or part of the amount paid by the insured as a deductible; or |
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(iii) in any other manner assist the |
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insured in avoiding monetary payment of the required insurance |
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deductible; or |
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(2) provides a good or service to an insured under a |
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property or automobile insurance policy knowing that the insured |
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will pay for the good or service with the proceeds of a claim under |
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the policy and, without the insurer's consent: |
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(A) pays, waives, absorbs, or otherwise declines |
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to charge or collect the amount of the insured's deductible; |
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(B) provides a rebate or credit in connection |
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with the sale of the good or service that offsets all or part of the |
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amount paid by the insured as a deductible; or |
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(C) in any other manner assists the insured in |
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avoiding monetary payment of the required insurance deductible. |
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SECTION 2. (a) Section 27.02, Business & Commerce Code, as |
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amended by this Act, applies only to an offense committed on or |
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after the effective date of this Act. An offense committed before |
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the effective date of this Act is governed by the law in effect on |
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the date the offense was committed, and the former law is continued |
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in effect for that purpose. For purposes of this subsection, an |
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offense was committed before the effective date of this Act if any |
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element of the offense occurred before that date. |
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(b) Section 27.02(b), Business & Commerce Code, as amended |
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by this Act, applies only to a contract entered into on or after the |
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effective date of this Act. A contract entered into before the |
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effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |