Texas 2019 - 86th Regular

Texas House Bill HB2102 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2102
	1	+	By: Capriglione, et al. H.B. No. 2102
	2	+	(Senate Sponsor - Zaffirini)
	3	+	(In the Senate - Received from the House May 6, 2019;
	4	+	May 6, 2019, read first time and referred to Committee on Business &
	5	+	Commerce; May 20, 2019, reported adversely, with favorable
	6	+	Committee Substitute by the following vote: Yeas 7, Nays 0;
	7	+	May 20, 2019, sent to printer.)
	8	+	Click here to see the committee vote
	9	+	COMMITTEE SUBSTITUTE FOR H.B. No. 2102 By: Zaffirini
2	10
3	11
	12	+	A BILL TO BE ENTITLED
4	13		AN ACT
5	14		relating to the payment of insurance deductibles related to
6	15		property insurance policies; creating a criminal offense.
7	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	17		SECTION 1. Subtitle F, Title 5, Insurance Code, is amended
9	18		by adding Chapter 707 to read as follows:
10	19		CHAPTER 707. PAYMENT OF INSURANCE DEDUCTIBLE
11	20		Sec. 707.001. DEFINITIONS. In this chapter:
12	21		(1) "Person" means an individual, corporation,
13	22		association, partnership, limited liability company, or other
14	23		legal entity.
15	24		(2) "Property insurance policy" means an insurance
16	25		policy issued by an insurer, including a county mutual insurance
17	26		company, farm mutual insurance company, Lloyd's plan, or reciprocal
18	27		or interinsurance exchange, that provides first-party coverage for
19	28		loss of or damage to real property.
20	29		Sec. 707.002. PAYMENT OF DEDUCTIBLE REQUIRED. A person
21	30		insured under a property insurance policy shall pay any deductible
22	31		applicable to a first-party claim made under the policy.
23	32		Sec. 707.003. CONSUMER EDUCATION. The department, in
24	33		coordination with other state agencies and stakeholders as
25	34		necessary, shall develop and implement an education program related
26	35		to the payment of property insurance policy deductibles. The
27	36		program must:
28	37		(1) provide reasonable methods to educate insurance
29	38		consumers and providers of goods or services that are regularly
30	39		paid for from proceeds of property insurance claims; and
31	40		(2) include information regarding:
32	41		(A) the requirements of this chapter and Section
33	42		27.02, Business & Commerce Code; and
34	43		(B) the conduct prohibited by Section 27.02,
35	44		Business & Commerce Code.
36	45		Sec. 707.004. REASONABLE PROOF OF PAYMENT. An insurer that
37	46		issues a property insurance policy with replacement cost coverage
38	47		may refuse to pay a claim for withheld recoverable depreciation or a
39	48		replacement cost holdback under the policy until the insurer
40	49		receives reasonable proof of payment by the policyholder of any
41	50		deductible applicable to the claim. Reasonable proof of payment
42	51		includes a canceled check, money order receipt, credit card
43	52		statement, or copy of an executed installment plan contract or
44	53		other financing arrangement that requires full payment of the
45	54		deductible over time.
46	55		Sec. 707.005. RULEMAKING. The commissioner may adopt rules
47	56		as necessary to implement this chapter. Section 2001.0045,
48	57		Government Code, does not apply to rules adopted under this
49	58		section.
50	59		SECTION 2. Section 27.02, Business & Commerce Code, is
51	60		amended to read as follows:
52	61		Sec. 27.02. GOODS OR SERVICES PAID FOR BY INSURANCE
53	62		PROCEEDS: PAYMENT OF DEDUCTIBLE REQUIRED [CERTAIN INSURANCE CLAIMS
54	63		FOR EXCESSIVE CHARGES]. (a) In this section, "property insurance
55	64		policy" has the meaning assigned by Section 707.001, Insurance
56	65		Code.
57	66		(b) A contract to provide a good or service that is
58	67		reasonably expected to be paid wholly or partly from the proceeds of
59	68		a claim under a property insurance policy and that has a contract
60	69		price of $1,000 or more must contain the following notice in at
61	70		least 12-point boldfaced type: "Texas law requires a person
62	71		insured under a property insurance policy to pay any deductible
63	72		applicable to a claim made under the policy. It is a violation of
64	73		Texas law for a seller of goods or services who reasonably expects
65	74		to be paid wholly or partly from the proceeds of a property
66	75		insurance claim to knowingly allow the insured person to fail to
67	76		pay, or assist the insured person's failure to pay, the applicable
68	77		insurance deductible."
69	78		(c) A person who sells goods or services commits an offense
70	79		if the person:
71	80		(1) advertises or promises to provide a good or
72	81		service to an insured under a property insurance policy in a
73	82		transaction in which:
74	83		(A) the good or service will be paid for by the
75	84		insured from the proceeds of a property insurance claim; and
76	85		(B) the person selling the good or service will,
77	86		without the insurer's consent:
78	87		(i) pay, waive, absorb, or otherwise
79	88		decline to charge or collect the amount of the insured's
80	89		deductible;
81	90		(ii) provide a rebate or credit in
82	91		connection with the sale of the good or service that will offset all
83	92		or part of the amount paid by the insured as a deductible; or
84	93		(iii) in any other manner assist the
85	94		insured in avoiding monetary payment of the required insurance
86	95		deductible; or
87	96		(2) provides a good or service to an insured under a
88	97		property insurance policy knowing that the insured will pay for the
89	98		good or service with the proceeds of a claim under the policy and,
90	99		without the insurer's consent:
91	100		(A) pays, waives, absorbs, or otherwise declines
92	101		to charge or collect the amount of the insured's deductible;
93	102		(B) provides a rebate or credit in connection
94	103		with the sale of the good or service that offsets all or part of the
95	104		amount paid by the insured as a deductible; or
96	105		(C) in any other manner assists the insured in
97	106		avoiding monetary payment of the required insurance deductible. [A
98	107		person who sells goods or services commits an offense if:
99	108		[(1) the person advertises or promises to provide the
100	109		good or service and to pay:
101	110		[(A) all or part of any applicable insurance
102	111		deductible; or
103	112		[(B) a rebate in an amount equal to all or part of
104	113		any applicable insurance deductible;
105	114		[(2) the good or service is paid for by the consumer
106	115		from proceeds of a property or casualty insurance policy; and
107	116		[(3) the person knowingly charges an amount for the
108	117		good or service that exceeds the usual and customary charge by the
109	118		person for the good or service by an amount equal to or greater than
110	119		all or part of the applicable insurance deductible paid by the
111	120		person to an insurer on behalf of an insured or remitted to an
112	121		insured by the person as a rebate.
113	122		[(b) A person who is insured under a property or casualty
114	123		insurance policy commits an offense if the person:
115	124		[(1) submits a claim under the policy based on charges
116	125		that are in violation of Subsection (a) of this section; or
117	126		[(2) knowingly allows a claim in violation of
118	127		Subsection (a) of this section to be submitted, unless the person
119	128		promptly notifies the insurer of the excessive charges.]
120	129		(d) [(c)] An offense under this section is a Class B [A]
121	130		misdemeanor.
122	131		SECTION 3. The changes in law made by this Act to Section
123	132		27.02, Business & Commerce Code, apply only to an offense committed
124	133		on or after the effective date of this Act. An offense committed
125	134		before the effective date of this Act is governed by the law in
126	135		effect on the date the offense was committed, and the former law is
127	136		continued in effect for that purpose. For purposes of this section,
128	137		an offense was committed before the effective date of this Act if
129	138		any element of the offense occurred before that date.
130	139		SECTION 4. Section 27.02(b), Business & Commerce Code, as
131	140		amended by this Act, applies only to a contract entered into on or
132	141		after the effective date of this Act.
133	142		SECTION 5. This Act takes effect September 1, 2019.
134		-	______________________________ ______________________________
135		-	President of the Senate Speaker of the House
136		-	I certify that H.B. No. 2102 was passed by the House on May 3,
137		-	2019, by the following vote: Yeas 136, Nays 4, 2 present, not
138		-	voting; and that the House concurred in Senate amendments to H.B.
139		-	No. 2102 on May 24, 2019, by the following vote: Yeas 82, Nays 50,
140		-	2 present, not voting.
141		-	______________________________
142		-	Chief Clerk of the House
143		-	I certify that H.B. No. 2102 was passed by the Senate, with
144		-	amendments, on May 22, 2019, by the following vote: Yeas 31, Nays
145		-	0.
146		-	______________________________
147		-	Secretary of the Senate
148		-	APPROVED: __________________
149		-	Date
150		-	__________________
151		-	Governor
	143	+	* * * * *