Texas 2011 - 82nd Regular

Texas Senate Bill SB1300 Compare Versions

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Old	New	Differences
1	1	By: Jackson S.B. No. 1300
2	2	(Eiland)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to insurer restrictions regarding repair of a motor
8	8	vehicle covered under an insurance policy.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 1952.304, Insurance Code, is amended to
11	11	read as follows:
12	12	Sec. 1952.304. PROVISION OF INFORMATION REGARDING REPAIRS.
13	13	(a) At the time a motor vehicle is presented to an insurer,
14	14	insurance adjuster, or other person in connection with a claim for
15	15	damage repair, the insurer shall provide the claimant with a
16	16	written notice summarizing the insurer's policies and procedures
17	17	for repair processes and claims payments for direct repair
18	18	facilities and nondirect repair facilities. The notice must
19	19	include a summary explanation of how the insurer's policies and
20	20	procedures for repair processes and claims payments for direct
21	21	repair facilities and nondirect repair facilities differ.
22	22	(b) An insurer may not prohibit a repair person or facility
23	23	from providing a beneficiary or third-party claimant with
24	24	information that states:
25	25	(1) the description, manufacturer, or source of the
26	26	parts used; and
27	27	(2) the amounts charged to the insurer for the parts
28	28	and related labor.
29	29	(c) The commissioner may adopt rules establishing the
30	30	method or methods insurers must use to comply with this section.
31	31	SECTION 2. Subchapter G, Chapter 1952, Insurance Code, is
32	32	amended by adding Sections 1952.308 and 1952.309 to read as
33	33	follows:
34	34	Sec. 1952.308. APPLICABILITY OF SUBCHAPTER. This
35	35	subchapter applies to an insurer authorized to write automobile
36	36	insurance in this state, including an insurance company, reciprocal
37	37	or interinsurance exchange, mutual insurance company, capital
38	38	stock company, county mutual insurance company, Lloyd's plan, or
39	39	other entity.
40	40	Sec. 1952.309. DISCLOSURE TO AUTOMOBILE REPAIR FACILITY.
41	41	An insurer must provide an automobile repair facility that submits
42	42	a written request with a written disclosure explaining the
43	43	requirements to become a contracted direct repair facility with
44	44	that insurer not later than the 30th day after the date the insurer
45	45	receives the request. This section does not require an insurer to
46	46	contract with an inquiring automobile repair facility.
47	47	SECTION 3. (a) To the extent Section 1952.301, Insurance
48	48	Code, applies to an insurer under Section 1952.308, Insurance Code,
49	49	as added by this Act, to whom Section 1952.301 did not apply
50	50	immediately before the effective date of this Act, Section 1952.301
51	51	applies only to a policy delivered, issued for delivery, or renewed
52	52	by the insurer on or after the effective date of this Act. A policy
53	53	delivered, issued for delivery, or renewed by the insurer before
54	54	the effective date of this Act is governed by the law in effect
55	55	immediately before the effective date of this Act, and the former
56	56	law is continued in effect for that purpose.
57	57	(b) To the extent Section 1952.303, Insurance Code, applies
58	58	to an insurer under Section 1952.308, Insurance Code, as added by
59	59	this Act, to whom Section 1952.303 did not apply immediately before
60	60	the effective date of this Act, Section 1952.303 applies only to a
61	61	contract entered into by the insurer on or after the effective date
62	62	of this Act. A contract entered into by the insurer before the
63	63	effective date of this Act is governed by the law in effect
64	64	immediately before the effective date of this Act, and the former
65	65	law is continued in effect for that purpose.
66	66	SECTION 4. This Act takes effect September 1, 2011.