| 1 | 1 | | 82R23669 TRH-F |
|---|
| 2 | 2 | | By: Thompson H.B. No. 2423 |
|---|
| 3 | 3 | | Substitute the following for H.B. No. 2423: |
|---|
| 4 | 4 | | By: Harless C.S.H.B. No. 2423 |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to certain prohibited practices of third-party |
|---|
| 10 | 10 | | administrators relating to automotive glass repair services. |
|---|
| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 12 | 12 | | SECTION 1. The heading to Chapter 2307, Occupations Code, |
|---|
| 13 | 13 | | is amended to read as follows: |
|---|
| 14 | 14 | | CHAPTER 2307. [INSURER] INTERESTS OF INSURERS AND THIRD-PARTY |
|---|
| 15 | 15 | | ADMINISTRATORS IN CERTAIN [REPAIR] FACILITIES AND SERVICES; |
|---|
| 16 | 16 | | PROHIBITED PRACTICES |
|---|
| 17 | 17 | | SECTION 2. Section 2307.001, Occupations Code, is amended |
|---|
| 18 | 18 | | by adding Subdivisions (1-a), (1-b), and (6-a) to read as follows: |
|---|
| 19 | 19 | | (1-a) "Automotive glass repair service" means a person |
|---|
| 20 | 20 | | that engages in the business of automotive glass work. |
|---|
| 21 | 21 | | (1-b) "Automotive glass work" means the installation, |
|---|
| 22 | 22 | | maintenance, or repair of fixed or moveable glass in a motor |
|---|
| 23 | 23 | | vehicle. |
|---|
| 24 | 24 | | (6-a) "Third-party administrator" means a person, |
|---|
| 25 | 25 | | other than a person licensed or otherwise authorized to engage in |
|---|
| 26 | 26 | | business under Title 13, Insurance Code, that, in connection with |
|---|
| 27 | 27 | | motor vehicle insurance coverage: |
|---|
| 28 | 28 | | (A) collects a charge or premium: |
|---|
| 29 | 29 | | (i) from a resident of this state; or |
|---|
| 30 | 30 | | (ii) paid on behalf of a resident of this |
|---|
| 31 | 31 | | state; or |
|---|
| 32 | 32 | | (B) provides administrative services to, or |
|---|
| 33 | 33 | | inspects or settles a claim by, a resident of this state. |
|---|
| 34 | 34 | | SECTION 3. Chapter 2307, Occupations Code, is amended by |
|---|
| 35 | 35 | | adding Section 2307.0025 to read as follows: |
|---|
| 36 | 36 | | Sec. 2307.0025. DECEPTIVE TRADE PRACTICE. (a) A |
|---|
| 37 | 37 | | third-party administrator that holds at least a 10 percent |
|---|
| 38 | 38 | | ownership interest in an automotive glass repair service may not: |
|---|
| 39 | 39 | | (1) refer a third-party claimant or an insured to the |
|---|
| 40 | 40 | | service; |
|---|
| 41 | 41 | | (2) coerce a third-party claimant or an insured to use |
|---|
| 42 | 42 | | the service; or |
|---|
| 43 | 43 | | (3) use consumer information obtained in the process |
|---|
| 44 | 44 | | of acting as a third-party administrator to solicit business for |
|---|
| 45 | 45 | | the automotive glass repair service. |
|---|
| 46 | 46 | | (b) A violation of this section is a false, misleading, or |
|---|
| 47 | 47 | | deceptive act or practice within the meaning of Section 17.46, |
|---|
| 48 | 48 | | Business & Commerce Code. |
|---|
| 49 | 49 | | (c) A public or private right or remedy prescribed by |
|---|
| 50 | 50 | | Chapter 17, Business & Commerce Code, may be used to enforce this |
|---|
| 51 | 51 | | section. |
|---|
| 52 | 52 | | SECTION 4. This Act takes effect September 1, 2011. |
|---|