By: Zaffirini S.B. No. 2404
A BILL TO BE ENTITLED
AN ACT
relating to certain agreements between insurers, policyholders,
and motor vehicle storage persons or facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1952.302, Insurance Code, is amended to
read as follows:
Sec. 1952.302. PROHIBITED ACTS IN CONNECTION WITH REPAIR OF
MOTOR VEHICLE; EXCEPTIONS. (a) In connection with the repair of
damage to a motor vehicle covered under an automobile insurance
policy, an insurer, an employee or agent of an insurer, an insurance
adjuster, or an entity that employs an insurance adjuster may not:
(1) solicit or accept a referral fee or gratuity in
exchange for referring a beneficiary or third-party claimant to a
repair person or facility to repair the damage;
(2) state or suggest, either orally or in writing, to a
beneficiary that the beneficiary must use a specific repair person
or facility or a repair person or facility identified on a preferred
list compiled by an insurer for the damage repair or parts
replacement to be covered by the policy; or
(3) restrict the right of a beneficiary or third-party
claimant to choose a repair person or facility by requiring the
beneficiary or third-party claimant to travel an unreasonable
distance to repair the damage.
(b) Notwithstanding Subsection (a), an employee or agent of
an insurer, an insurance adjuster, or an entity that employs an
insurance adjuster may request that a vehicle covered under an
automobile insurance policy that is involved in an accident be
taken to a state licensed vehicle storage facility, as a temporary
insurance holding lot, that is not owned or operated by the insurer
or vehicle repair facility. The operator of such vehicle storage
facility shall be required to post a surety bond in an amount not
less than $500,000.00 for the protection of vehicle owners.
(c) If the beneficiary of the policy agrees to use the
repair facility selected under Subsection (b), the insurer may
require that the policyholder and insurer mutually:
(1) determine whether the insured vehicle may be
repaired or totaled; and
(2) if the vehicle is to be repaired, agree on a repair
person or facility for the repair of the vehicle.
(d) The insurer shall notify the insurer's
policyholder and the police department of the jurisdiction in which
the accident occurred of the repair facility selected under
Subsection (b) in the manner established by the commissioner by
rule.
SECTION 2. This Act applies only to an insurance policy or
contract that is delivered, issued for delivery, or renewed on or
after January 1, 2010. An insurance policy or contract delivered,
issued for delivery, or renewed before January 1, 2010, 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, 2009.