Texas 2023 - 88th Regular

Texas Senate Bill SB1083 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	By: King, et al. S.B. No. 1083
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to insurer restrictions and duties regarding repair of a
7	7	motor vehicle covered under an insurance policy.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 1952.301, Insurance Code, is amended to
10	10	read as follows:
11	11	Sec. 1952.301. LIMITATIONS AND DUTIES REGARDING REPAIR OF
12	12	MOTOR VEHICLE [LIMITATION ON PARTS, PRODUCTS, OR REPAIR PERSONS OR
13	13	FACILITIES PROHIBITED]. (a) In this section:
14	14	(1) "New motor vehicle" has the meaning assigned by
15	15	Section 2301.002, Occupations Code.
16	16	(2) "Non-original equipment" means a part, product, or
17	17	repair process used in the repair of a motor vehicle that is not
18	18	made by or for or used by that vehicle's manufacturer or
19	19	distributor.
20	20	(b) Under an automobile insurance policy that is delivered,
21	21	issued for delivery, or renewed in this state, for damage to a motor
22	22	vehicle that has been owned by the insured for 36 months or less and
23	23	that was a new motor vehicle when delivered to the insured, the
24	24	insurer:
25	25	(1) shall require that a part, product, or repair
26	26	process used to repair the vehicle be the original equipment
27	27	manufacturer's or distributor's part, product, or repair process,
28	28	unless the insured opts to use non-original equipment in accordance
29	29	with Subsection (f); and
30	30	(2) may not limit the beneficiary of the policy from
31	31	selecting a repair person or facility to repair damage to the
32	32	vehicle.
33	33	(c) Under [Except as provided by rules adopted by the
34	34	commissioner, under] an automobile insurance policy that is
35	35	delivered, issued for delivery, or renewed in this state, an
36	36	insurer may not directly or indirectly limit the insurer's coverage
37	37	under a policy covering damage to a motor vehicle that has been
38	38	owned by the insured for more than 36 months by:
39	39	(1) specifying the brand, type, kind, age, vendor,
40	40	supplier, or condition of parts or products or the repair process
41	41	that may be used to repair the vehicle; or
42	42	(2) limiting the beneficiary of the policy from
43	43	selecting a repair person or facility to repair damage to the
44	44	vehicle.
45	45	(d) In settling a liability claim by a third party against
46	46	an insured for property damage claimed by the third party for damage
47	47	to the third party's motor vehicle that has been owned by the third
48	48	party for 36 months or less and that was a new motor vehicle when
49	49	delivered to the third party, an insurer:
50	50	(1) shall require that a part, product, or repair
51	51	process used to repair the vehicle be the original equipment
52	52	manufacturer's or distributor's part, product, or repair process,
53	53	unless the third-party claimant opts to use non-original equipment
54	54	in accordance with Subsection (f); and
55	55	(2) may not require the third-party claimant to use a
56	56	particular repair person or facility to repair damage to the
57	57	vehicle.
58	58	(e) [(b)] In settling a liability claim by a third party
59	59	against an insured for property damage claimed by the third party to
60	60	a motor vehicle that has been owned by the insured for more than 36
61	61	months, an insurer may not require the third-party claimant to have
62	62	the motor vehicle repairs made by a particular repair person or
63	63	facility or to use a particular brand, type, kind, age, vendor,
64	64	supplier, or condition of parts or products or a particular repair
65	65	process.
66	66	(f) An insured or third-party claimant may opt to accept the
67	67	use of non-original equipment in the repair of the insured's or
68	68	claimant's motor vehicle by signing a written disclosure. The
69	69	disclosure must:
70	70	(1) be signed before repair of the vehicle begins;
71	71	(2) be delivered as an attachment to a written
72	72	estimate provided for the repair of the vehicle;
73	73	(3) be written in at least a 12-point font; and
74	74	(4) include the following language:
75	75	"I am opting to accept the use of a non-original equipment
76	76	manufacturer's or distributor's part, product, or repair process in
77	77	the repair of my vehicle, and I understand and agree that:
78	78	1. the attached repair estimate is based on the use of
79	79	a non-original equipment manufacturer's or distributor's part,
80	80	product, or repair process that is supplied by a manufacturer or
81	81	distributor that is not my motor vehicle's manufacturer or
82	82	distributor; and
83	83	2. the warranty for the non-original equipment
84	84	manufacturer's or distributor's part, product, or repair process is
85	85	provided by the manufacturer or distributor of that part, product,
86	86	or repair process and not by my motor vehicle's manufacturer or
87	87	distributor."
88	88	(g) An insurer that delivers, issues for delivery, or renews
89	89	an automobile insurance policy in this state may not require or
90	90	request that a repair person or facility use any specific
91	91	percentage of non-original equipment in the repair of a motor
92	92	vehicle.
93	93	SECTION 2. The change in law made by this Act applies only
94	94	to an insurance policy that is delivered, issued for delivery, or
95	95	renewed on or after January 1, 2024. A policy delivered, issued for
96	96	delivery, or renewed before that date is governed by the law as it
97	97	existed immediately before the effective date of this Act, and that
98	98	law is continued in effect for that purpose.
99	99	SECTION 3. This Act takes effect September 1, 2023.