| 1 | 1 | | 88R6516 CJD-F |
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| 2 | 2 | | By: Capriglione, Oliverson H.B. No. 1656 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the payment of deductibles under automobile insurance |
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| 8 | 8 | | policies. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 27.02(a), (b), and (c), Business & |
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| 11 | 11 | | Commerce Code, are amended to read as follows: |
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| 12 | 12 | | (a) In this section: |
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| 13 | 13 | | (1) "Automobile insurance policy" means an insurance |
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| 14 | 14 | | policy issued by an insurer, including a county mutual insurance |
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| 15 | 15 | | company, Lloyd's plan, or reciprocal or interinsurance exchange, |
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| 16 | 16 | | that provides first-party coverage for loss of or damage to an |
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| 17 | 17 | | automobile. |
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| 18 | 18 | | (2) "Property [, "property] insurance policy" has the |
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| 19 | 19 | | meaning assigned by Section 707.001, Insurance Code. |
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| 20 | 20 | | (b) A contract to provide a good or service that is |
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| 21 | 21 | | reasonably expected to be paid wholly or partly from the proceeds of |
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| 22 | 22 | | a claim under a property or automobile insurance policy and that has |
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| 23 | 23 | | a contract price of $1,000 or more must contain the following notice |
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| 24 | 24 | | in at least 12-point boldfaced type: "Texas law requires a person |
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| 25 | 25 | | insured under a property or automobile insurance policy to pay any |
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| 26 | 26 | | deductible applicable to a claim made under the policy. It is a |
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| 27 | 27 | | violation of Texas law for a seller of goods or services who |
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| 28 | 28 | | reasonably expects to be paid wholly or partly from the proceeds of |
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| 29 | 29 | | a property or automobile insurance claim to knowingly allow the |
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| 30 | 30 | | insured person to fail to pay, or assist the insured person's |
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| 31 | 31 | | failure to pay, the applicable insurance deductible." |
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| 32 | 32 | | (c) A person who sells goods or services commits an offense |
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| 33 | 33 | | if the person: |
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| 34 | 34 | | (1) advertises or promises to provide a good or |
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| 35 | 35 | | service to an insured under a property or automobile insurance |
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| 36 | 36 | | policy in a transaction in which: |
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| 37 | 37 | | (A) the good or service will be paid for by the |
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| 38 | 38 | | insured from the proceeds of a property or automobile insurance |
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| 39 | 39 | | claim; and |
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| 40 | 40 | | (B) the person selling the good or service will, |
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| 41 | 41 | | without the insurer's consent: |
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| 42 | 42 | | (i) pay, waive, absorb, or otherwise |
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| 43 | 43 | | decline to charge or collect the amount of the insured's |
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| 44 | 44 | | deductible; |
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| 45 | 45 | | (ii) provide a rebate or credit in |
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| 46 | 46 | | connection with the sale of the good or service that will offset all |
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| 47 | 47 | | or part of the amount paid by the insured as a deductible; or |
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| 48 | 48 | | (iii) in any other manner assist the |
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| 49 | 49 | | insured in avoiding monetary payment of the required insurance |
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| 50 | 50 | | deductible; or |
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| 51 | 51 | | (2) provides a good or service to an insured under a |
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| 52 | 52 | | property or automobile insurance policy knowing that the insured |
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| 53 | 53 | | will pay for the good or service with the proceeds of a claim under |
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| 54 | 54 | | the policy and, without the insurer's consent: |
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| 55 | 55 | | (A) pays, waives, absorbs, or otherwise declines |
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| 56 | 56 | | to charge or collect the amount of the insured's deductible; |
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| 57 | 57 | | (B) provides a rebate or credit in connection |
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| 58 | 58 | | with the sale of the good or service that offsets all or part of the |
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| 59 | 59 | | amount paid by the insured as a deductible; or |
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| 60 | 60 | | (C) in any other manner assists the insured in |
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| 61 | 61 | | avoiding monetary payment of the required insurance deductible. |
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| 62 | 62 | | SECTION 2. (a) Section 27.02, Business & Commerce Code, as |
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| 63 | 63 | | amended by this Act, applies only to an offense committed on or |
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| 64 | 64 | | after the effective date of this Act. An offense committed before |
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| 65 | 65 | | the effective date of this Act is governed by the law in effect on |
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| 66 | 66 | | the date the offense was committed, and the former law is continued |
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| 67 | 67 | | in effect for that purpose. For purposes of this subsection, an |
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| 68 | 68 | | offense was committed before the effective date of this Act if any |
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| 69 | 69 | | element of the offense occurred before that date. |
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| 70 | 70 | | (b) Section 27.02(b), Business & Commerce Code, as amended |
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| 71 | 71 | | by this Act, applies only to a contract entered into on or after the |
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| 72 | 72 | | effective date of this Act. A contract entered into before the |
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| 73 | 73 | | effective date of this Act is governed by the law as it existed |
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| 74 | 74 | | immediately before the effective date of this Act, and that law is |
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| 75 | 75 | | continued in effect for that purpose. |
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| 76 | 76 | | SECTION 3. This Act takes effect September 1, 2023. |
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