82R7987 RWG-F
By: Jackson S.B. No. 1300
A BILL TO BE ENTITLED
AN ACT
relating to insurer restrictions regarding repair of a motor
vehicle covered under an insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1952.301(a), Insurance Code, is amended
to read as follows:
(a) Except as provided by rules adopted by the commissioner,
under an automobile insurance policy that is delivered, issued for
delivery, or renewed in this state, an insurer may not directly or
indirectly limit the insurer's coverage under a policy covering
damage to a motor vehicle by:
(1) specifying the brand, type, kind, age, vendor,
supplier, or condition of parts or products that may be used to
repair the vehicle; [or]
(2) specifying maximum labor charges for the repair of
the vehicle; or
(3) limiting the beneficiary of the policy to [from]
selecting a repair person or facility to repair damage to the
vehicle from a list provided to the beneficiary by the insurer.
SECTION 2. Section 1952.304, Insurance Code, is amended to
read as follows:
Sec. 1952.304. PROVISION OF INFORMATION REGARDING REPAIRS.
(a) At the time a motor vehicle is presented to an insurer,
insurance adjuster, or other person in connection with a claim for
damage repair, the insurer shall provide the claimant with written
notice describing the insurer's policies and procedures for repair
processes and claims payments for direct repair facilities and
nondirect repair facilities. The notice must include an
explanation of how the insurer's policies and procedures for repair
processes and claims payments for direct repair facilities and
nondirect repair facilities differ.
(b) An insurer may not prohibit a repair person or facility
from providing a beneficiary or third-party claimant with
information that states:
(1) the description, manufacturer, or source of the
parts used; and
(2) the amounts charged to the insurer for the parts
and related labor.
(c) The commissioner may adopt rules establishing the
method or methods insurers must use to comply with this section.
SECTION 3. Subchapter G, Chapter 1952, Insurance Code, is
amended by adding Sections 1952.308 and 1952.309 to read as
follows:
Sec. 1952.308. APPLICABILITY OF SUBCHAPTER. This
subchapter applies to an insurer authorized to write automobile
insurance in this state, including an insurance company, reciprocal
or interinsurance exchange, mutual insurance company, capital
stock company, county mutual insurance company, Lloyd's plan, or
other entity.
Sec. 1952.309. DISCLOSURE TO AUTOMOBILE REPAIR FACILITY.
An insurer must provide an automobile repair facility that submits
a written request with a written disclosure explaining the
requirements to become a contracted direct repair facility with
that insurer not later than the 30th day after the date the insurer
receives the request.
SECTION 4. (a) Section 1952.301, Insurance Code, as
amended by this Act, applies only to an automobile insurance policy
delivered, issued for delivery, or renewed on or after the
effective date of this Act. A policy delivered, issued for
delivery, or renewed before the effective date of this Act is
governed by the law as it existed immediately before that date, and
that law is continued in effect for that purpose.
(b) To the extent Section 1952.301, Insurance Code, as
amended by this Act, applies to an insurer under Section 1952.308,
Insurance Code, as added by this Act, to whom Section 1952.301 did
not apply immediately before the effective date of this Act,
Section 1952.301 applies only to a policy delivered, issued for
delivery, or renewed by the insurer on or after the effective date
of this Act. A policy delivered, issued for delivery, or renewed by
the insurer before the effective date of this Act is governed by the
law in effect immediately before the effective date of this Act, and
the former law is continued in effect for that purpose.
(c) To the extent Section 1952.303, Insurance Code, applies
to an insurer under Section 1952.308, Insurance Code, as added by
this Act, to whom Section 1952.303 did not apply immediately before
the effective date of this Act, Section 1952.303 applies only to a
contract entered into by the insurer on or after the effective date
of this Act. A contract entered into by the insurer before the
effective date of this Act is governed by the law in effect
immediately before the effective date of this Act, and the former
law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2011.