Texas 2021 - 87th Regular

Texas Senate Bill SB1756 Compare Versions

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

Old	New	Differences
1	1	By: Johnson S.B. No. 1756
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the payment of insurance deductibles and release of
7	7	insurance proceeds to contractors for property insurance claims.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 27.02, Business & Commerce Code, is
10	10	amended by amending Subsection (c) to read as follows:
11	11	(c) A person who sells goods or services commits an offense
12	12	if the person:
13	13	(1) advertises or promises to provide a good or service
14	14	to an insured under a property insurance policy in a transaction in
15	15	which:
16	16	(A) the good or service will be paid for by the
17	17	insured from the proceeds of a property insurance claim; and
18	18	(B) the person selling the good or service will[,
19	19	without the insurer's consent]:
20	20	(i) pay, waive, absorb, or otherwise decline
21	21	to charge or collect the amount of the insured's deductible;
22	22	(ii) provide a rebate or credit in
23	23	connection with the sale of the good or service that will offset all
24	24	or part of the amount paid by the insured as a deductible; or
25	25	(iii) in any other manner assist the insured
26	26	in avoiding monetary payment of the required insurance deductible;
27	27	or
28	28	(2) provides a good or service to an insured under a
29	29	property insurance policy knowing that the insured will pay for the
30	30	good or service with the proceeds of a claim under the policy and[,
31	31	without the insurer's consent]:
32	32	(A) pays, waives, absorbs, or otherwise declines
33	33	to charge or collect the amount of the insured's deductible;
34	34	(B) provides a rebate or credit in connection
35	35	with the sale of the good or service that offsets all or part of the
36	36	amount paid by the insured as a deductible; or
37	37	(C) in any other manner assists the insured in
38	38	avoiding monetary payment of the required insurance deductible.
39	39	SECTION 2. Section 707.004, Insurance Code, is amended to
40	40	read as follows:
41	41	Sec. 707.004. [REASONABLE PROOF OF] PAYMENT OF DEDUCTIBLE;
42	42	RELEASE OF PROCEEDS TO CONTRACTOR. (a) An insurer that issues a
43	43	property insurance policy with replacement cost coverage shall
44	44	[may] refuse to pay a claim for withheld recoverable depreciation
45	45	or a replacement cost holdback under the policy until the insurer
46	46	receives reasonable proof of payment by the policyholder of any
47	47	deductible applicable to the claim. Reasonable proof of payment
48	48	includes a canceled check, money order receipt, credit card
49	49	statement, or copy of an executed installment plan contract or
50	50	other financing arrangement that requires full payment of the
51	51	deductible over time.
52	52	(b) An insurer may not waive a deductible owed by a
53	53	policyholder under a property insurance policy in exchange for the
54	54	policyholder's use of the insurer's preferred or recommended
55	55	contractor for the claim subject to the deductible.
56	56	SECTION 3. Section 707.004, Insurance Code, as amended by
57	57	this Act, applies only to an insurance policy delivered, issued for
58	58	delivery, or renewed on or after the effective date of this Act. A
59	59	policy delivered, issued for delivery, or renewed before the
60	60	effective date of this Act is governed by the law as it existed
61	61	immediately before the effective date of this Act, and that law is
62	62	continued in effect for that purpose.
63	63	SECTION 4. This Act takes effect September 1, 2021.