Texas 2019 - 86th Regular

Texas Senate Bill SB1169 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R5237 JES-F
2	2	By: Zaffirini S.B. No. 1169
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the payment of insurance deductibles related to
8	8	property insurance policies; creating criminal offenses.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle F, Title 5, Insurance Code, is amended
11	11	by adding Chapter 707 to read as follows:
12	12	CHAPTER 707. PAYMENT OF INSURANCE DEDUCTIBLE
13	13	Sec. 707.001. DEFINITIONS. In this chapter:
14	14	(1) "Person" means an individual, corporation,
15	15	association, partnership, limited liability company, or other
16	16	legal entity.
17	17	(2) "Property insurance" means insurance that
18	18	provides coverage for loss of or damage to real or personal
19	19	property.
20	20	Sec. 707.002. PAYMENT OF DEDUCTIBLE REQUIRED. A person
21	21	insured under a property insurance policy shall pay any deductible
22	22	applicable to a first-party claim made under the policy.
23	23	Sec. 707.003. CONSUMER EDUCATION. The department shall
24	24	develop and implement an education program related to the payment
25	25	of property insurance deductibles. The program must:
26	26	(1) provide reasonable methods to educate insurance
27	27	consumers and providers of goods or services that are regularly
28	28	paid for from proceeds of property insurance claims; and
29	29	(2) include materials regarding:
30	30	(A) the requirements of this chapter; and
31	31	(B) the conduct prohibited by Section 707.006.
32	32	Sec. 707.004. REQUIRED CONTRACT NOTICE. A contract to
33	33	provide a good or service that is reasonably expected to be paid
34	34	wholly or partly from the proceeds of a claim under a property
35	35	insurance policy and that has a contract price of $1,000 or more
36	36	must contain the following notice in at least 12-point boldfaced
37	37	type: "Texas law requires a person insured under a property
38	38	insurance policy to pay any deductible applicable to a claim made
39	39	under the policy. It is a violation of Texas law for a person or
40	40	business paid wholly or partly from proceeds of a property
41	41	insurance claim to knowingly allow the policyholder to fail to pay,
42	42	or assist the policyholder's failure to pay, the applicable
43	43	insurance deductible."
44	44	Sec. 707.005. PROOF OF PAYMENT. (a) This section applies
45	45	to any insurer that issues a policy providing coverage for loss of
46	46	or damage to real or personal property, including a county mutual
47	47	insurance company, a farm mutual insurance company, a reciprocal or
48	48	interinsurance exchange, or a Lloyd's plan.
49	49	(b) An insurer that issues a property insurance policy with
50	50	replacement cost coverage may refuse to pay a claim for replacement
51	51	cost under the policy until the insurer receives reasonable proof
52	52	of payment by the policyholder of any deductible applicable to the
53	53	claim.
54	54	Sec. 707.006. OFFENSES. (a) A person who sells goods or
55	55	services commits an offense if the person:
56	56	(1) advertises or promises to provide a good or
57	57	service to an insured under a property insurance policy in a
58	58	transaction in which:
59	59	(A) the good or service will be paid for by the
60	60	insured from the proceeds of a property insurance claim; and
61	61	(B) the person selling the good or service will,
62	62	without the insurer's consent:
63	63	(i) pay, waive, absorb, or otherwise
64	64	decline to charge or collect the amount of the insured's
65	65	deductible;
66	66	(ii) provide a rebate or credit in
67	67	connection with the sale of the good or service that will offset all
68	68	or part of the amount paid by the insured as a deductible; or
69	69	(iii) in any other manner assist the
70	70	insured in avoiding monetary payment of the required insurance
71	71	deductible; or
72	72	(2) provides a good or service to an insured under a
73	73	property insurance policy knowing that the insured will pay for the
74	74	good or service with the proceeds of a claim under the policy and,
75	75	without the insurer's consent:
76	76	(A) pays, waives, absorbs, or otherwise declines
77	77	to charge or collect the amount of the insured's deductible;
78	78	(B) provides a rebate or credit in connection
79	79	with the sale of the good or service that offsets all or part of the
80	80	amount paid by the insured as a deductible; or
81	81	(C) in any other manner assists the insured in
82	82	avoiding monetary payment of the required insurance deductible.
83	83	(b) A person insured under a property insurance policy
84	84	commits an offense if the person, in connection with a first-party
85	85	claim under the policy for loss of or damage to real or personal
86	86	property, knowingly:
87	87	(1) pays for a good or service with proceeds of the
88	88	claim; and
89	89	(2) without the insurer's consent:
90	90	(A) fails to pay a required insurance deductible
91	91	in connection with the claim; or
92	92	(B) accepts a rebate or credit in connection with
93	93	the purchase that offsets all or part of the amount paid by the
94	94	insured as a deductible.
95	95	(c) An offense under this section is a Class A misdemeanor.
96	96	SECTION 2. Section 27.02, Business & Commerce Code, is
97	97	repealed.
98	98	SECTION 3. The repeal by this Act of Section 27.02, Business &
99	99	Commerce Code, applies only to an offense committed on or after
100	100	the effective date of this Act. An offense committed before the
101	101	effective date of this Act is governed by the law in effect on the
102	102	date the offense was committed, and the former law is continued in
103	103	effect for that purpose. For purposes of this section, an offense
104	104	was committed before the effective date of this Act if any element
105	105	of the offense occurred before that date.
106	106	SECTION 4. Section 707.004, Insurance Code, as added by
107	107	this Act, applies only to a contract entered into on or after the
108	108	effective date of this Act.
109	109	SECTION 5. This Act takes effect September 1, 2019.