82R23669 TRH-F
By: Thompson H.B. No. 2423
Substitute the following for H.B. No. 2423:
By: Harless C.S.H.B. No. 2423
A BILL TO BE ENTITLED
AN ACT
relating to certain prohibited practices of third-party
administrators relating to automotive glass repair services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 2307, Occupations Code,
is amended to read as follows:
CHAPTER 2307. [INSURER] INTERESTS OF INSURERS AND THIRD-PARTY
ADMINISTRATORS IN CERTAIN [REPAIR] FACILITIES AND SERVICES;
PROHIBITED PRACTICES
SECTION 2. Section 2307.001, Occupations Code, is amended
by adding Subdivisions (1-a), (1-b), and (6-a) to read as follows:
(1-a) "Automotive glass repair service" means a person
that engages in the business of automotive glass work.
(1-b) "Automotive glass work" means the installation,
maintenance, or repair of fixed or moveable glass in a motor
vehicle.
(6-a) "Third-party administrator" means a person,
other than a person licensed or otherwise authorized to engage in
business under Title 13, Insurance Code, that, in connection with
motor vehicle insurance coverage:
(A) collects a charge or premium:
(i) from a resident of this state; or
(ii) paid on behalf of a resident of this
state; or
(B) provides administrative services to, or
inspects or settles a claim by, a resident of this state.
SECTION 3. Chapter 2307, Occupations Code, is amended by
adding Section 2307.0025 to read as follows:
Sec. 2307.0025. DECEPTIVE TRADE PRACTICE. (a) A
third-party administrator that holds at least a 10 percent
ownership interest in an automotive glass repair service may not:
(1) refer a third-party claimant or an insured to the
service;
(2) coerce a third-party claimant or an insured to use
the service; or
(3) use consumer information obtained in the process
of acting as a third-party administrator to solicit business for
the automotive glass repair service.
(b) A violation of this section is a false, misleading, or
deceptive act or practice within the meaning of Section 17.46,
Business & Commerce Code.
(c) A public or private right or remedy prescribed by
Chapter 17, Business & Commerce Code, may be used to enforce this
section.
SECTION 4. This Act takes effect September 1, 2011.