| 1 | 1 | | 84R11942 GRM-F |
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| 2 | 2 | | By: Capriglione H.B. No. 2971 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to prosecution of the offense of payment of deductibles |
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| 8 | 8 | | under a property or casualty insurance policy. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 27.02(a) and (b), Business & Commerce |
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| 11 | 11 | | Code, are amended to read as follows: |
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| 12 | 12 | | (a) A person [who sells goods or services] commits an |
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| 13 | 13 | | offense if as part of the claim process under a property or casualty |
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| 14 | 14 | | insurance policy: |
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| 15 | 15 | | (1) the person advertises or promises to provide a |
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| 16 | 16 | | [the] good or service and offers to pay, waive, rebate, trade, |
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| 17 | 17 | | subsidize, credit, or otherwise cover: |
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| 18 | 18 | | (A) all or part of any applicable insurance |
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| 19 | 19 | | deductible; or |
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| 20 | 20 | | (B) [a rebate in] an amount equal to all or part |
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| 21 | 21 | | of any applicable insurance deductible or other uninsured amount |
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| 22 | 22 | | owed by an insured under the terms of the applicable policy; |
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| 23 | 23 | | (2) the good or service is paid for by the consumer |
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| 24 | 24 | | from proceeds of a property or casualty insurance policy; and |
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| 25 | 25 | | (3) the person knowingly provides or causes to be |
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| 26 | 26 | | provided to an insurer an estimate or other statement of the cost of |
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| 27 | 27 | | repair for the good or service that the person increases or |
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| 28 | 28 | | otherwise manipulates [charges an amount for the good or service |
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| 29 | 29 | | that exceeds the usual and customary charge by the person for the |
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| 30 | 30 | | good or service] by an amount equal to or greater than all or part of |
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| 31 | 31 | | the applicable insurance deductible or other uninsured amount owed |
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| 32 | 32 | | by an insured under the terms of the applicable policy [paid by the |
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| 33 | 33 | | person to an insurer on behalf of an insured or remitted to an |
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| 34 | 34 | | insured by the person as a rebate]. |
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| 35 | 35 | | (b) A person who is insured under a property or casualty |
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| 36 | 36 | | insurance policy commits an offense if the person: |
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| 37 | 37 | | (1) submits, either directly or indirectly, a claim |
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| 38 | 38 | | under the policy based on conduct [charges] that is [are] in |
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| 39 | 39 | | violation of Subsection (a) [of this section]; or |
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| 40 | 40 | | (2) knowingly allows a claim in violation of |
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| 41 | 41 | | Subsection (a) [of this section] to be submitted, unless the person |
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| 42 | 42 | | promptly notifies the insurer of the conduct in violation of |
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| 43 | 43 | | Subsection (a) [excessive charges]. |
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| 44 | 44 | | SECTION 2. The change in law made by this Act applies only |
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| 45 | 45 | | to an offense committed on or after the effective date of this Act. |
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| 46 | 46 | | An offense committed before the effective date of this Act is |
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| 47 | 47 | | governed by the law in effect on the date the offense was committed, |
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| 48 | 48 | | and the former law is continued in effect for that purpose. For |
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| 49 | 49 | | purposes of this section, an offense was committed before the |
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| 50 | 50 | | effective date of this Act if any element of the offense occurred |
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| 51 | 51 | | before that date. |
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| 52 | 52 | | SECTION 3. This Act takes effect September 1, 2015. |
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