Texas 2017 - 85th Regular

Texas House Bill HB3804 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	85R25168 PMO-F
2		-	By: Clardy, Muñoz, Jr. H.B. No. 3804
3		-	Substitute the following for H.B. No. 3804:
4		-	By: Phillips C.S.H.B. No. 3804
	1	+	85R10541 LED-F
	2	+	By: Clardy H.B. No. 3804
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to certain insurance practices with respect to repair of
10	8		motor vehicles.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Subchapter G, Chapter 1952, Insurance Code, is
13	11		amended by adding Section 1952.300 to read as follows:
14	12		Sec. 1952.300. DEFINITIONS. (a) In this subchapter,
15	13		"estimating system" means an automobile collision damage
16	14		estimating system that is generally accepted by the automobile
17	15		repair industry for use in writing an automobile repair estimate.
18	16		(b) In this subchapter, "repair person or facility" does not
19	17		include a person who exclusively provides automobile glass
20	18		replacement, glass repair services, or glass products.
21	19		SECTION 2. Section 1952.301, Insurance Code, is amended to
22	20		read as follows:
23	21		Sec. 1952.301. LIMITATION ON PARTS, PRODUCTS, OR REPAIR
24	22		PERSONS OR FACILITIES PROHIBITED. (a) Except as provided by rules
25	23		adopted by the commissioner, under an automobile insurance policy
26	24		that is delivered, issued for delivery, or renewed in this state, an
27	25		insurer may not directly or indirectly limit the insurer's coverage
28	26		under a policy covering damage to a motor vehicle by[:
29	27		[(1)] specifying the brand, type, kind, age, vendor,
30	28		supplier, or condition of parts or products that may be used to
31	29		repair the vehicle. [; or]
32	30		(a-1) Under an automobile insurance policy that is
33	31		delivered, issued for delivery, or renewed in this state, an
34	32		insurer, an employee or agent of an insurer, an insurance adjuster,
35	33		or an entity that employs an insurance adjuster may not directly or
36	34		indirectly limit the insurer's coverage under a policy covering
37	35		damage to a motor vehicle by:
38	36		(1) [(2)] limiting the beneficiary of the policy from
39	37		selecting a repair person or facility to repair damage to the
40		-	vehicle to the vehicle's condition before the damage occurred in
41		-	order for the beneficiary to obtain the repair without owing any
42		-	out-of-pocket cost other than the deductible;
	38	+	vehicle;
43	39		(2) intimidating, coercing, or threatening the
44	40		beneficiary to induce the beneficiary to use a particular repair
45	41		person or facility; or
46		-	(3) offering an incentive or inducement, other than a
47		-	warranty issued by the insurer or a repair person or facility, for
48		-	the beneficiary to use a particular repair person or facility.
	42	+	(3) offering an incentive or inducement, other than
	43	+	the list described by Section 1952.309 or a warranty issued by a
	44	+	repair person or facility, for the beneficiary to use a particular
	45	+	repair person or facility.
49	46		(b) In settling a liability claim by a third party against
50	47		an insured for property damage claimed by the third party, an
51	48		insurer, an employee or agent of an insurer, an insurance adjuster,
52	49		or an entity that employs an insurance adjuster may not:
53	50		(1) require the third-party claimant to have repairs
54	51		made by a particular repair person or facility; [or]
55	52		(2) require the third-party claimant to use a
56	53		particular brand, type, kind, age, vendor, supplier, or condition
57		-	of parts or products to repair damage to the vehicle to the
58		-	vehicle's condition before the damage occurred;
	54	+	of parts or products;
59	55		(3) intimidate, coerce, or threaten the third-party
60	56		claimant to induce the claimant to use a particular repair person or
61	57		facility; or
62		-	(4) offer an incentive or inducement, other than a
63		-	warranty issued by ~~the insurer or~~ a repair ~~person or facility, for~~
64		-	the third-party claimant to use a ~~particular repair person or~~
65		-	facility.
	58	+	(4) offer an incentive or inducement, other than the
	59	+	list described by Section 1952.309 or a warranty issued by a repair
	60	+	person or facility, for the third-party claimant to use a
	61	+	particular repair person or facility.
66	62		SECTION 3. Section 1952.302, Insurance Code, is amended to
67	63		read as follows:
68	64		Sec. 1952.302. PROHIBITED ACTS IN CONNECTION WITH REPAIR OF
69		-	MOTOR VEHICLE. In connection with the repair of damage to a ~~motor~~
70		-	vehicle covered under an automobile insurance policy, an ~~insurer,~~
71		-	an employee or agent of an insurer, an insurance adjuster, ~~or an~~
72		-	entity that employs an insurance adjuster may not:
	65	+	MOTOR VEHICLE. (a) In connection with the repair of damage to a
	66	+	motor vehicle covered under an automobile insurance policy, an
	67	+	insurer, an employee or agent of an insurer, an insurance adjuster,
	68	+	or an entity that employs an insurance adjuster may not:
73	69		(1) solicit or accept a referral fee or gratuity in
74	70		exchange for referring a beneficiary or third-party claimant to a
75	71		repair person or facility to repair the damage;
76	72		(2) state or suggest, either orally or in writing, to a
77	73		beneficiary that the beneficiary must use a specific repair person
78	74		or facility or a repair person or facility identified on a preferred
79	75		list compiled by an insurer for the damage repair or parts
80	76		replacement to be covered by the policy; [or]
81	77		(3) restrict the right of a beneficiary or third-party
82	78		claimant to choose a repair person or facility by requiring the
83		-	beneficiary or third-party claimant to travel a [an unreasonable]
84		-	distance considered inconvenient by a beneficiary or third-party
85		-	claimant to repair the damage; or
	79	+	beneficiary or third-party claimant to travel an unreasonable
	80	+	distance to repair the damage;
86	81		(4) disregard a repair operation or cost identified by
87		-	an estimating system, including the system's procedural pages,
88		-	selected by the insurer for use in writing the automobile repair
89		-	estimate for the motor vehicle.
90		-	SECTION 4. The change in law made by this Act applies only
	82	+	an estimating system that was previously agreed on by the insurer
	83	+	and the repair person or facility to determine the cost of repair;
	84	+	or
	85	+	(5) refuse to pay the reasonable and necessary cost of
	86	+	a repair operation for covered damages less any portion of the cost
	87	+	that is the insured's responsibility under the policy.
	88	+	(b) For purposes of Subsection (a)(5), the cost of a repair
	89	+	operation is reasonable and necessary if the repair operation and
	90	+	its cost are in accordance with an estimating system that is
	91	+	recognized by the commissioner.
	92	+	SECTION 4. Subchapter G, Chapter 1952, Insurance Code, is
	93	+	amended by adding Sections 1952.308, 1952.309, and 1952.310 to read
	94	+	as follows:
	95	+	Sec. 1952.308. INSURER ACCESS TO MOTOR VEHICLE. If a
	96	+	beneficiary or third-party claimant makes a claim seeking repair of
	97	+	an automobile, the insurer, including the insurer's agent or
	98	+	broker, may have access to the automobile to prepare a competitive
	99	+	estimate.
	100	+	Sec. 1952.309. LIST OF REPAIR PERSONS AND FACILITIES. (a)
	101	+	Upon request, an insurer shall provide, without prejudice or bias,
	102	+	to a beneficiary or third-party claimant a list of all repair
	103	+	persons and facilities that:
	104	+	(1) are reasonably close or convenient to the
	105	+	beneficiary or third-party claimant;
	106	+	(2) agree to perform quality repairs that meet
	107	+	reasonable industry repair standards; and
	108	+	(3) agree to provide a warranty for the quality of
	109	+	work, including refinishing, in writing to the beneficiary or
	110	+	third-party claimant, for a period of not less than one year from
	111	+	the date of repair.
	112	+	(b) If a beneficiary or third-party claimant requests a list
	113	+	under Subsection (a), the insurer shall notify the beneficiary or
	114	+	claimant that the beneficiary or claimant may select a repair
	115	+	person or facility at the sole discretion of the beneficiary or
	116	+	claimant.
	117	+	Sec. 1952.310. IMMUNITY FROM LIABILITY. An insurer is not
	118	+	liable for damages arising from the work performed by a repair
	119	+	person or facility selected by the beneficiary or third-party
	120	+	claimant.
	121	+	SECTION 5. The change in law made by this Act applies only
91	122		to an insurance policy that is delivered, issued for delivery, or
92	123		renewed on or after January 1, 2018. A policy delivered, issued for
93	124		delivery, or renewed before that date is governed by the law as it
94	125		existed immediately before the effective date of this Act, and that
95	126		law is continued in effect for that purpose.
96		-	SECTION 5. This Act takes effect September 1, 2017.
	127	+	SECTION 6. This Act takes effect September 1, 2017.