Texas 2009 - 81st Regular

Texas Senate Bill SB2404 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Zaffirini S.B. No. 2404
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3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to certain agreements between insurers, policyholders,
7	7	and motor vehicle storage persons or facilities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 1952.302, Insurance Code, is amended to
10	10	read as follows:
11	11	Sec. 1952.302. PROHIBITED ACTS IN CONNECTION WITH REPAIR OF
12	12	MOTOR VEHICLE; EXCEPTIONS. (a) In connection with the repair of
13	13	damage to a motor vehicle covered under an automobile insurance
14	14	policy, an insurer, an employee or agent of an insurer, an insurance
15	15	adjuster, or an entity that employs an insurance adjuster may not:
16	16	(1) solicit or accept a referral fee or gratuity in
17	17	exchange for referring a beneficiary or third-party claimant to a
18	18	repair person or facility to repair the damage;
19	19	(2) state or suggest, either orally or in writing, to a
20	20	beneficiary that the beneficiary must use a specific repair person
21	21	or facility or a repair person or facility identified on a preferred
22	22	list compiled by an insurer for the damage repair or parts
23	23	replacement to be covered by the policy; or
24	24	(3) restrict the right of a beneficiary or third-party
25	25	claimant to choose a repair person or facility by requiring the
26	26	beneficiary or third-party claimant to travel an unreasonable
27	27	distance to repair the damage.
28	28	(b) Notwithstanding Subsection (a), an employee or agent of
29	29	an insurer, an insurance adjuster, or an entity that employs an
30	30	insurance adjuster may request that a vehicle covered under an
31	31	automobile insurance policy that is involved in an accident be
32	32	taken to a state licensed vehicle storage facility, as a temporary
33	33	insurance holding lot, that is not owned or operated by the insurer
34	34	or vehicle repair facility. The operator of such vehicle storage
35	35	facility shall be required to post a surety bond in an amount not
36	36	less than $500,000.00 for the protection of vehicle owners.
37	37	(c) If the beneficiary of the policy agrees to use the
38	38	repair facility selected under Subsection (b), the insurer may
39	39	require that the policyholder and insurer mutually:
40	40	(1) determine whether the insured vehicle may be
41	41	repaired or totaled; and
42	42	(2) if the vehicle is to be repaired, agree on a repair
43	43	person or facility for the repair of the vehicle.
44	44	(d) The insurer shall notify the insurer's
45	45	policyholder and the police department of the jurisdiction in which
46	46	the accident occurred of the repair facility selected under
47	47	Subsection (b) in the manner established by the commissioner by
48	48	rule.
49	49	SECTION 2. This Act applies only to an insurance policy or
50	50	contract that is delivered, issued for delivery, or renewed on or
51	51	after January 1, 2010. An insurance policy or contract delivered,
52	52	issued for delivery, or renewed before January 1, 2010, is governed
53	53	by the law as it existed immediately before the effective date of
54	54	this Act, and that law is continued in effect for that purpose.
55	55	SECTION 3. This Act takes effect September 1, 2009.