Texas House Bill HB3851

Texas 2015 - 84th Regular

Caption

Relating to the waiving of insurance deductibles and other manipulation of charges in the insurance claims process, creating an offense.

Impact

The implementation of HB3851 will create criminal liabilities for individuals and businesses that engage in deceptive practices concerning insurance claims. It will particularly affect those who manipulate the charges associated with repair or service costs to absorb insurance deductibles, which could reduce occurrences of fraud but also result in increased enforcement and potential legal consequences for offending parties. The designation of such offenses as Class A misdemeanors underscores the severity of these acts in the eyes of the law, promoting accountability within the industry.

Summary

House Bill 3851 addresses the waiving of insurance deductibles and various manipulations regarding charges in the insurance claims process. The bill establishes that any person who advertises or promises to cover part or all of an insurance deductible in exchange for services related to a property or casualty insurance policy commits an offense. This measure aims to combat fraudulent practices in the insurance industry and protect consumers from being misled or manipulated by service providers who inflate costs to cover deductibles.

Contention

While supporters of HB3851 argue that it is a necessary step toward protecting both consumers and the integrity of the insurance system, concerns may arise about the practical implications of enforcing these provisions. Potential opponents might raise issues about how these regulations could stifle competition among service providers, especially those who operate on thin profit margins and rely on effective ways to manage customer costs. Additionally, the bill may lead to more comprehensive legal scrutiny of insurance transactions, raising questions about its impact on customer service and provider-client relationships.