Texas 2019 - 86th Regular

Texas House Bill HB1348 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R26916 PMO-F
2		-	By: Clardy, J. Johnson of Dallas, Lambert, H.B. No. 1348
3		-	Vo, et al.
4		-	Substitute the following for H.B. No. 1348:
5		-	By: Lucio III C.S.H.B. No. 1348
	1	+	86R3378 PMO-F
	2	+	By: Clardy H.B. No. 1348
6	3
7	4
8	5		A BILL TO BE ENTITLED
9	6		AN ACT
10	7		relating to certain insurance practices with respect to repair of
11	8		motor vehicles.
12	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	10		SECTION 1. Subchapter G, Chapter 1952, Insurance Code, is
14	11		amended by adding Section 1952.300 to read as follows:
15	12		Sec. 1952.300. DEFINITIONS. (a) In this subchapter:
16	13		(1) "Estimating system" means an automobile collision
17	14		damage estimating system that is generally accepted by the
18	15		automobile repair industry for use in writing an automobile repair
19	16		estimate.
20	17		(2) "Repair person or facility" does not include a
21	18		person who exclusively provides automobile glass replacement,
22	19		glass repair services, or glass products.
23	20		(b) For purposes of enforcement of this subchapter:
24	21		(1) "Prevailing rate" means the rate identified by a
25	22		rate survey that is:
26	23		(A) conducted by a third party;
27	24		(B) designed to be transparent and unbiased; and
28	25		(C) based on the posted retail labor rates and
29	26		not direct repair program shop rates that operate under a contract
30	27		with an insurer.
31	28		(2) "Reasonable and necessary amount" means the amount
32	29		determined by the original equipment manufacturer's manufacturer
33	30		and estimating systems required to repair a vehicle to the
34	31		condition before the covered damage to the vehicle occurred.
35	32		SECTION 2. Section 1952.301, Insurance Code, is amended to
36	33		read as follows:
37	34		Sec. 1952.301. LIMITATION ON PARTS, PRODUCTS, OR REPAIR
38	35		PERSONS OR FACILITIES PROHIBITED. (a) Except as provided by rules
39	36		adopted by the commissioner, under an automobile insurance policy
40	37		that is delivered, issued for delivery, or renewed in this state, an
41	38		insurer may not directly or indirectly limit the insurer's coverage
42	39		under a policy covering damage to a motor vehicle by[:
43	40		[(1)] specifying the brand, type, kind, age, vendor,
44	41		supplier, or condition of parts or products that may be used to
45	42		repair the vehicle. [; or]
46	43		(a-1) An insurer described by Subsection (a) may not require
47	44		that:
48	45		(1) a vehicle be repaired with a part or product on the
49	46		basis that the part or product is the least expensive part or
50	47		product available; or
51	48		(2) the beneficiary of a policy purchase any part or
52	49		product from any vendor or supplier, including an out-of-state
53	50		vendor or supplier, on the basis that the part or product is the
54	51		least expensive part or product available.
55	52		(a-2) An insurer described by Subsection (a) may not
56	53		consider a specified part or product for the repair of a motor
57	54		vehicle to be of like kind and quality as an original equipment
58	55		manufacturer part or product for any purpose unless the insurer or
59	56		the manufacturer of the specified part or product has conclusively
60	57		demonstrated that the specified part or product:
61	58		(1) meets the fit, finish, and quality criteria
62	59		established for the part or product by the original equipment
63	60		manufacturer of the part or product;
64	61		(2) is the same weight and metal hardness established
65	62		for the part or product by the original equipment manufacturer of
66	63		the part or product; and
67	64		(3) has been tested using the same crash and safety
68	65		test criteria used by the original equipment manufacturer of the
69	66		part or product.
70	67		(a-3) Under an automobile insurance policy that is
71	68		delivered, issued for delivery, or renewed in this state, an
72	69		insurer described by Subsection (a), an employee or agent of the
73	70		insurer, an insurance adjuster, or an entity that employs an
74	71		insurance adjuster may not directly or indirectly limit the
75	72		insurer's coverage under a policy covering damage to a motor
76	73		vehicle by:
77	74		(1) [(2)] limiting the beneficiary of the policy from
78	75		selecting a repair person or facility to repair damage to the
79	76		vehicle to the vehicle's condition before the damage occurred in
80	77		order for the beneficiary to obtain the repair without owing any
81	78		out-of-pocket cost other than the deductible;
82	79		(2) intimidating, coercing, or threatening the
83	80		beneficiary to induce the beneficiary to use a particular repair
84	81		person or facility; or
85	82		(3) offering an incentive or inducement, other than a
86	83		warranty issued by a repair person or facility, for the beneficiary
87	84		to use a particular repair person or facility.
88	85		(b) In settling a liability claim by a third party against
89	86		an insured for property damage claimed by the third party, an
90	87		insurer, an employee or agent of an insurer, an insurance adjuster,
91	88		or an entity that employs an insurance adjuster may not:
92	89		(1) require the third-party claimant to have repairs
93		-	made by a particular repair person or facility;
94		-	(2) require the third-party claimant ~~[or]~~ to use a
	90	+	made by a particular repair person or facility; [or]
	91	+	(2) require the third-party claimant to use a
95	92		particular brand, type, kind, age, vendor, supplier, or condition
96	93		of parts or products to repair damage to the vehicle to the
97	94		vehicle's condition before the damage occurred;
98	95		(3) intimidate, coerce, or threaten the third-party
99	96		claimant to induce the claimant to use a particular repair person or
100	97		facility; or
101	98		(4) offer an incentive or inducement, other than a
102	99		warranty issued by a repair person or facility, for the third-party
103	100		claimant to use a particular repair person or facility.
104	101		SECTION 3. Section 1952.302, Insurance Code, is amended to
105	102		read as follows:
106	103		Sec. 1952.302. PROHIBITED ACTS IN CONNECTION WITH REPAIR OF
107		-	MOTOR VEHICLE. ~~(a)~~ In connection with the repair of damage to a
108		-	~~motor~~ vehicle covered under an automobile insurance policy, an
109		-	~~insurer,~~ an employee or agent of an insurer, an insurance adjuster,
110		-	~~or an~~ entity that employs an insurance adjuster may not:
	104	+	MOTOR VEHICLE. In connection with the repair of damage to a motor
	105	+	vehicle covered under an automobile insurance policy, an insurer,
	106	+	an employee or agent of an insurer, an insurance adjuster, or an
	107	+	entity that employs an insurance adjuster may not:
111	108		(1) solicit or accept a referral fee or gratuity in
112	109		exchange for referring a beneficiary or third-party claimant to a
113	110		repair person or facility to repair the damage;
114	111		(2) state or suggest, either orally or in writing, to a
115	112		beneficiary that the beneficiary must use a specific repair person
116	113		or facility or a repair person or facility identified on a preferred
117	114		list compiled by an insurer for the damage repair or parts
118	115		replacement to be covered by the policy; [or]
119	116		(3) restrict the right of a beneficiary or third-party
120	117		claimant to choose a repair person or facility by requiring the
121	118		beneficiary or third-party claimant to travel a [an unreasonable]
122	119		distance considered inconvenient by a beneficiary or third-party
123	120		claimant to repair the damage;
124	121		(4) offer, communicate, or suggest in any manner that
125	122		a particular repair person or facility will provide faster repair
126	123		times, faster service, or more efficient claims handling than
127	124		another repair person or facility; or
128	125		(5) disregard a repair operation or cost identified by
129	126		an estimating system, including the system's procedural pages and
130	127		any repair, process, or procedure recommended by the original
131	128		equipment manufacturer of a part or product.
132		-	(b) Notwithstanding Subsection (a)(5), a motor vehicle
133		-	covered under an automobile insurance policy may be repaired with a
134		-	part or product that is of like kind and quality as an original
135		-	equipment manufacturer part or product as authorized by Section
136		-	1952.301(a-2).
137	129		SECTION 4. The change in law made by this Act applies only
138	130		to an insurance policy that is delivered, issued for delivery, or
139	131		renewed on or after January 1, 2020. A policy delivered, issued for
140	132		delivery, or renewed before that date is governed by the law as it
141	133		existed immediately before the effective date of this Act, and that
142	134		law is continued in effect for that purpose.
143	135		SECTION 5. This Act takes effect September 1, 2019.