By: Menéndez, Campbell S.B. No. 1538
A BILL TO BE ENTITLED
AN ACT
relating to insurer restrictions and duties regarding repair of a
motor vehicle covered under an insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1952.301, Insurance Code, is amended to
read as follows:
Sec. 1952.301. LIMITATIONS AND DUTIES REGARDING REPAIR OF
MOTOR VEHICLE[LIMITATION ON PARTS, PRODUCTS, OR REPAIR PERSONS OR
FACILITIES PROHIBITED]. (a) Under [Except as provided by rules
adopted by the commissioner, under] an automobile insurance policy
that is delivered, issued for delivery, or renewed in this state, an
insurer may not directly or indirectly limit the insurer's coverage
under a policy covering damage to a motor vehicle that has an
unexpired manufacturer's warranty.
(a-1) Conduct prohibited by Subsection (a) includes [by]:
(1) specifying the brand, type, kind, age, vendor,
supplier, or condition of parts or products or the repair process
that may be used to repair the vehicle, unless the specified part,
product, or repair process is the manufacturer's warranted part,
product, or repair process for a motor vehicle that has an unexpired
manufacturer's warranty; or
(2) limiting the beneficiary of the policy from
selecting a repair person or facility to repair damage to the
vehicle.
(b) In settling a liability claim by a third party against
an insured for property damage claimed by the third party, an
insurer may not require the third-party claimant to have motor
vehicle repairs made by a particular repair person or facility or to
use a particular brand, type, kind, age, vendor, supplier, or
condition of parts or products or a particular repair process,
unless the part, product, or repair process is the manufacturer's
warranted part, product, or repair process for a motor vehicle that
has an unexpired manufacturer's warranty; or
(c) If a covered repair to a third party's or the insured's
motor vehicle requires an original equipment manufacturer's part or
product that is no longer manufactured, the insurer shall use the
insurer's best efforts to ensure the repair can be made using the
necessary part or product along with any necessary repair process
to restore the motor vehicle to the vehicle's pre-damaged
condition.
SECTION 2. The change in law made by this Act applies only
to an insurance policy that is delivered, issued for delivery, or
renewed on or after January 1, 2022. A policy delivered, issued for
delivery, or renewed before that date is governed by the law as it
existed immediately before the effective date of this Act, and that
law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2021.