By: Jackson S.B. No. 1300
(In the Senate - Filed March 8, 2011; March 16, 2011, read
first time and referred to Committee on Business and Commerce;
April 13, 2011, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 13, 2011,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1300 By: Jackson
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 1952.304, 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 2. 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 3. (a) To the extent Section 1952.301, Insurance
Code, 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.
(b) 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 4. This Act takes effect September 1, 2011.
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