Texas 2023 - 88th Regular

Texas House Bill HB3476 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R6056 JES-F
2	2	By: Leach H.B. No. 3476
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) In this section:
15	15	(1) "New motor vehicle" has the meaning assigned by
16	16	Section 2301.002, Occupations Code.
17	17	(2) "Non-original equipment" means a part, product, or
18	18	repair process used in the repair of a motor vehicle that is not
19	19	made by or for or used by that vehicle's manufacturer or
20	20	distributor.
21	21	(b) Under an automobile insurance policy that is delivered,
22	22	issued for delivery, or renewed in this state, for damage to a motor
23	23	vehicle that has been owned by the insured for 36 months or less and
24	24	that was a new motor vehicle when delivered to the insured, the
25	25	insurer:
26	26	(1) shall require that a part, product, or repair
27	27	process used to repair the vehicle be the original equipment
28	28	manufacturer's or distributor's part, product, or repair process,
29	29	unless the insured opts to use non-original equipment in accordance
30	30	with Subsection (f); and
31	31	(2) may not limit the beneficiary of the policy from
32	32	selecting a repair person or facility to repair damage to the
33	33	vehicle.
34	34	(c) Under [Except as provided by rules adopted by the
35	35	commissioner, under] an automobile insurance policy that is
36	36	delivered, issued for delivery, or renewed in this state, an
37	37	insurer may not directly or indirectly limit the insurer's coverage
38	38	under a policy covering damage to a motor vehicle that has been
39	39	owned by the insured for more than 36 months by:
40	40	(1) specifying the brand, type, kind, age, vendor,
41	41	supplier, or condition of parts or products or the repair process
42	42	that may be used to repair the vehicle; or
43	43	(2) limiting the beneficiary of the policy from
44	44	selecting a repair person or facility to repair damage to the
45	45	vehicle.
46	46	(d) In settling a liability claim by a third party against
47	47	an insured for property damage claimed by the third party for damage
48	48	to the third party's motor vehicle that has been owned by the third
49	49	party for 36 months or less and that was a new motor vehicle when
50	50	delivered to the third party, an insurer:
51	51	(1) shall require that a part, product, or repair
52	52	process used to repair the vehicle be the original equipment
53	53	manufacturer's or distributor's part, product, or repair process,
54	54	unless the third-party claimant opts to use non-original equipment
55	55	in accordance with Subsection (f); and
56	56	(2) may not require the third-party claimant to use a
57	57	particular repair person or facility to repair damage to the
58	58	vehicle.
59	59	(e) [(b)] In settling a liability claim by a third party
60	60	against an insured for property damage claimed by the third party to
61	61	a motor vehicle that has been owned by the insured for more than 36
62	62	months, an insurer may not require the third-party claimant to have
63	63	the motor vehicle repairs made by a particular repair person or
64	64	facility or to use a particular brand, type, kind, age, vendor,
65	65	supplier, or condition of parts or products or a particular repair
66	66	process.
67	67	(f) An insured or third-party claimant may opt to accept the
68	68	use of non-original equipment in the repair of the insured's or
69	69	claimant's motor vehicle by signing a written disclosure. The
70	70	disclosure must:
71	71	(1) be signed before repair of the vehicle begins;
72	72	(2) be delivered as an attachment to a written
73	73	estimate provided for the repair of the vehicle;
74	74	(3) be written in at least a 12-point font; and
75	75	(4) include the following language:
76	76	"I am opting to accept the use of a non-original equipment
77	77	manufacturer's or distributor's part, product, or repair process in
78	78	the repair of my vehicle, and I understand and agree that:
79	79	1. the attached repair estimate is based on the use of
80	80	a non-original equipment manufacturer's or distributor's part,
81	81	product, or repair process that is supplied by a manufacturer or
82	82	distributor that is not my motor vehicle's manufacturer or
83	83	distributor; and
84	84	2. the warranty for the non-original equipment
85	85	manufacturer's or distributor's part, product, or repair process is
86	86	provided by the manufacturer or distributor of that part, product,
87	87	or repair process and not by my motor vehicle's manufacturer or
88	88	distributor."
89	89	(g) An insurer that delivers, issues for delivery, or renews
90	90	an automobile insurance policy in this state may not require or
91	91	request that a repair person or facility use any specific
92	92	percentage of non-original equipment in the repair of a motor
93	93	vehicle.
94	94	SECTION 2. The change in law made by this Act applies only
95	95	to an insurance policy that is delivered, issued for delivery, or
96	96	renewed on or after January 1, 2024. A policy delivered, issued for
97	97	delivery, or renewed before that date is governed by the law as it
98	98	existed immediately before the effective date of this Act, and that
99	99	law is continued in effect for that purpose.
100	100	SECTION 3. This Act takes effect September 1, 2023.