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A BILL TO BE ENTITLED
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AN ACT
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relating to insurer restrictions and duties regarding repair of a |
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motor vehicle covered under an insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1952.301, Insurance Code, is amended to |
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read as follows: |
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Sec. 1952.301. LIMITATIONS AND DUTIES REGARDING REPAIR OF |
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MOTOR VEHICLE [LIMITATION ON PARTS, PRODUCTS, OR REPAIR PERSONS OR |
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FACILITIES PROHIBITED]. (a) In this section: |
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(1) "New motor vehicle" has the meaning assigned by |
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Section 2301.002, Occupations Code. |
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(2) "Non-original equipment" means a part, product, or |
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repair process used in the repair of a motor vehicle that is not |
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made by or for or used by that vehicle's manufacturer or |
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distributor. |
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(b) Under an automobile insurance policy that is delivered, |
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issued for delivery, or renewed in this state, for damage to a motor |
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vehicle that has been owned by the insured for 36 months or less and |
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that was a new motor vehicle when delivered to the insured, the |
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insurer: |
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(1) shall require that a part, product, or repair |
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process used to repair the vehicle be the original equipment |
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manufacturer's or distributor's part, product, or repair process, |
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unless the insured opts to use non-original equipment in accordance |
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with Subsection (f); and |
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(2) may not limit the beneficiary of the policy from |
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selecting a repair person or facility to repair damage to the |
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vehicle. |
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(c) Under [Except as provided by rules adopted by the |
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commissioner, under] an automobile insurance policy that is |
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delivered, issued for delivery, or renewed in this state, an |
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insurer may not directly or indirectly limit the insurer's coverage |
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under a policy covering damage to a motor vehicle that has been |
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owned by the insured for more than 36 months by: |
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(1) specifying the brand, type, kind, age, vendor, |
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supplier, or condition of parts or products or the repair process |
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that may be used to repair the vehicle; or |
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(2) limiting the beneficiary of the policy from |
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selecting a repair person or facility to repair damage to the |
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vehicle. |
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(d) In settling a liability claim by a third party against |
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an insured for property damage claimed by the third party for damage |
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to the third party's motor vehicle that has been owned by the third |
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party for 36 months or less and that was a new motor vehicle when |
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delivered to the third party, an insurer: |
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(1) shall require that a part, product, or repair |
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process used to repair the vehicle be the original equipment |
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manufacturer's or distributor's part, product, or repair process, |
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unless the third-party claimant opts to use non-original equipment |
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in accordance with Subsection (f); and |
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(2) may not require the third-party claimant to use a |
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particular repair person or facility to repair damage to the |
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vehicle. |
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(e) [(b)] In settling a liability claim by a third party |
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against an insured for property damage claimed by the third party to |
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a motor vehicle that has been owned by the insured for more than 36 |
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months, an insurer may not require the third-party claimant to have |
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the motor vehicle repairs made by a particular repair person or |
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facility or to use a particular brand, type, kind, age, vendor, |
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supplier, or condition of parts or products or a particular repair |
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process. |
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(f) An insured or third-party claimant may opt to accept the |
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use of non-original equipment in the repair of the insured's or |
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claimant's motor vehicle by signing a written disclosure. The |
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disclosure must: |
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(1) be signed before repair of the vehicle begins; |
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(2) be delivered as an attachment to a written |
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estimate provided for the repair of the vehicle; |
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(3) be written in at least a 12-point font; and |
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(4) include the following language: |
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"I am opting to accept the use of a non-original equipment |
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manufacturer's or distributor's part, product, or repair process in |
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the repair of my vehicle, and I understand and agree that: |
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1. the attached repair estimate is based on the use of |
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a non-original equipment manufacturer's or distributor's part, |
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product, or repair process that is supplied by a manufacturer or |
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distributor that is not my motor vehicle's manufacturer or |
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distributor; and |
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2. the warranty for the non-original equipment |
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manufacturer's or distributor's part, product, or repair process is |
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provided by the manufacturer or distributor of that part, product, |
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or repair process and not by my motor vehicle's manufacturer or |
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distributor." |
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(g) An insurer that delivers, issues for delivery, or renews |
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an automobile insurance policy in this state may not require or |
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request that a repair person or facility use any specific |
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percentage of non-original equipment in the repair of a motor |
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vehicle. |
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SECTION 2. The change in law made by this Act applies only |
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to an insurance policy that is delivered, issued for delivery, or |
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renewed on or after January 1, 2024. A policy delivered, issued for |
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delivery, or renewed before that date is governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |