| 1 | 1 | | 87R8937 JES-F |
|---|
| 2 | 2 | | By: Lambert H.B. No. 3960 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to insurer restrictions and duties regarding repair of a |
|---|
| 8 | 8 | | motor vehicle covered under an insurance policy. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 1952.301, Insurance Code, is amended to |
|---|
| 11 | 11 | | read as follows: |
|---|
| 12 | 12 | | Sec. 1952.301. LIMITATIONS AND DUTIES REGARDING REPAIR OF |
|---|
| 13 | 13 | | MOTOR VEHICLE [LIMITATION ON PARTS, PRODUCTS, OR REPAIR PERSONS OR |
|---|
| 14 | 14 | | FACILITIES PROHIBITED]. (a) Under [Except as provided by rules |
|---|
| 15 | 15 | | adopted by the commissioner, under] an automobile insurance policy |
|---|
| 16 | 16 | | that is delivered, issued for delivery, or renewed in this state, an |
|---|
| 17 | 17 | | insurer may not directly or indirectly limit the insurer's coverage |
|---|
| 18 | 18 | | under a policy covering damage to a motor vehicle that has an |
|---|
| 19 | 19 | | unexpired manufacturer's warranty. |
|---|
| 20 | 20 | | (a-1) Conduct prohibited by Subsection (a) includes [by]: |
|---|
| 21 | 21 | | (1) specifying the brand, type, kind, age, vendor, |
|---|
| 22 | 22 | | supplier, or condition of parts or products or the repair process |
|---|
| 23 | 23 | | that may be used to repair the vehicle, unless the specified part, |
|---|
| 24 | 24 | | product, or repair process is the manufacturer's warranted part, |
|---|
| 25 | 25 | | product, or repair process; or |
|---|
| 26 | 26 | | (2) limiting the beneficiary of the policy from |
|---|
| 27 | 27 | | selecting a repair person or facility to repair damage to the |
|---|
| 28 | 28 | | vehicle. |
|---|
| 29 | 29 | | (b) In settling a liability claim by a third party against |
|---|
| 30 | 30 | | an insured for property damage, claimed by the third party, to a |
|---|
| 31 | 31 | | motor vehicle that has an unexpired manufacturer's warranty, an |
|---|
| 32 | 32 | | insurer may not require the third-party claimant to have the motor |
|---|
| 33 | 33 | | vehicle repairs made by a particular repair person or facility or to |
|---|
| 34 | 34 | | use a particular brand, type, kind, age, vendor, supplier, or |
|---|
| 35 | 35 | | condition of parts or products or a particular repair process, |
|---|
| 36 | 36 | | unless the part, product, or repair process is the manufacturer's |
|---|
| 37 | 37 | | warranted part, product, or repair process. |
|---|
| 38 | 38 | | (c) If a covered repair to a third party's or the insured's |
|---|
| 39 | 39 | | motor vehicle requires an original equipment manufacturer's part or |
|---|
| 40 | 40 | | product that is no longer manufactured to restore the motor vehicle |
|---|
| 41 | 41 | | to the vehicle's pre-damaged condition, the insurer shall use the |
|---|
| 42 | 42 | | insurer's best efforts to ensure the repair can be made using that |
|---|
| 43 | 43 | | necessary part or product along with any necessary repair process. |
|---|
| 44 | 44 | | SECTION 2. The change in law made by this Act applies only |
|---|
| 45 | 45 | | to an insurance policy that is delivered, issued for delivery, or |
|---|
| 46 | 46 | | renewed on or after January 1, 2022. A policy delivered, issued for |
|---|
| 47 | 47 | | delivery, or renewed before that date is governed by the law as it |
|---|
| 48 | 48 | | existed immediately before the effective date of this Act, and that |
|---|
| 49 | 49 | | law is continued in effect for that purpose. |
|---|
| 50 | 50 | | SECTION 3. This Act takes effect September 1, 2021. |
|---|