| 1 | 1 | | By: Thompson of Brazoria H.B. No. 3851 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the waiving of insurance deductibles and other |
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| 7 | 7 | | manipulation of charges in the insurance claims process, creating |
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| 8 | 8 | | an offense. |
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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. The heading to Section 27.02, Business and |
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| 11 | 11 | | Commerce Code, is amended to read as follows: |
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| 12 | 12 | | Sec. 27.02. WAIVING OF DEDUCTIBLES AND OTHER MANIPULATION |
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| 13 | 13 | | OF CHARGES IN INSURANCE CLAIMS CERTAIN INSURANCE CLAIMS FOR |
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| 14 | 14 | | EXCESSIVE CHARGES |
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| 15 | 15 | | SECTION 2. Sections 27.02(a) and (b), Business and Commerce |
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| 16 | 16 | | Code, are amended to read as follows: |
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| 17 | 17 | | (a) A person who provides sells goods or services and is |
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| 18 | 18 | | wholly or partially compensated with payments arising from a claim |
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| 19 | 19 | | under a property or casualty insurance policy commits an offense |
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| 20 | 20 | | if: |
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| 21 | 21 | | (1) the person advertises or promises to provide the |
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| 22 | 22 | | good or service and to pay, waive, absorb, rebate, subsidize, |
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| 23 | 23 | | credit, or otherwise cover for any reason [: |
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| 24 | 24 | | [(A)] all or part of any applicable insurance |
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| 25 | 25 | | deductible or other uninsured amount owed by an insured under the |
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| 26 | 26 | | terms of the applicable policy; [or |
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| 27 | 27 | | [(B) a rebate in an amount equal to all or part of |
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| 28 | 28 | | any applicable insurance deductible;] |
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| 29 | 29 | | (2) the good or service is paid for by the consumer |
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| 30 | 30 | | from proceeds of a property or casualty insurance policy; and |
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| 31 | 31 | | (23) the person knowingly provides or causes to be |
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| 32 | 32 | | provided to an insurer any estimate or other statement as to the |
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| 33 | 33 | | cost of repair for the good or service provided that has been |
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| 34 | 34 | | increased, inflated, or otherwise manipulated [charges an amount |
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| 35 | 35 | | for the good or service that exceeds the usual and customary charge |
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| 36 | 36 | | by the person for the good or service] by an amount equal to or |
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| 37 | 37 | | greater than all or part of the applicable insurance deductible or |
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| 38 | 38 | | other uninsured amount owed by an insured under the terms of the |
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| 39 | 39 | | applicable policy paid by the person to an insurer on behalf of an |
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| 40 | 40 | | insured or remitted to an insured by the person as a rebate. |
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| 41 | 41 | | (b) A person who is insured under a property or casualty |
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| 42 | 42 | | insurance policy commits an offense if the person: |
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| 43 | 43 | | (1) knowingly submits a claim under the policy based |
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| 44 | 44 | | on conduct charges that are in violation of Subsection (a) of this |
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| 45 | 45 | | section; or |
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| 46 | 46 | | (2) knowingly allows a claim in violation of |
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| 47 | 47 | | Subsection (a) of this section to be submitted, unless the person |
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| 48 | 48 | | promptly notifies the insurer of the conduct in violation of |
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| 49 | 49 | | Subsection (a) excessive charges. |
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| 50 | 50 | | (c) An offense under this section is a Class A |
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| 51 | 51 | | misdemeanor. |
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| 52 | 52 | | SECTION 2. This Act takes effect September 1, 2015. |
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