Texas 2023 - 88th Regular

Texas Senate Bill SB1268 Compare Versions

Version 1 (Old)

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1	1	By: Johnson, Perry S.B. No. 1268
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the payment of insurance deductibles for property
7	7	insurance claims.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 27.02(c), Business & Commerce Code, is
10	10	amended 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
14	14	service to an insured under a property insurance policy in a
15	15	transaction in 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
21	21	decline to charge or collect the amount of the insured's
22	22	deductible;
23	23	(ii) provide a rebate or credit in
24	24	connection with the sale of the good or service that will offset all
25	25	or part of the amount paid by the insured as a deductible; or
26	26	(iii) in any other manner assist the
27	27	insured in avoiding monetary payment of the required insurance
28	28	deductible; or
29	29	(2) provides a good or service to an insured under a
30	30	property insurance policy knowing that the insured will pay for the
31	31	good or service with the proceeds of a claim under the policy and[,
32	32	without the insurer's consent]:
33	33	(A) pays, waives, absorbs, or otherwise declines
34	34	to charge or collect the amount of the insured's deductible;
35	35	(B) provides a rebate or credit in connection
36	36	with the sale of the good or service that offsets all or part of the
37	37	amount paid by the insured as a deductible; or
38	38	(C) in any other manner assists the insured in
39	39	avoiding monetary payment of the required insurance deductible.
40	40	SECTION 2. Section 707.004, Insurance Code, is amended to
41	41	read as follows:
42	42	Sec. 707.004. [REASONABLE PROOF OF] PAYMENT OF DEDUCTIBLE.
43	43	(a) An insurer that issues a property insurance policy with
44	44	replacement cost coverage shall [may] refuse to pay a claim for
45	45	withheld recoverable depreciation or a replacement cost holdback
46	46	under the policy until the insurer receives reasonable proof of
47	47	payment by the policyholder of any deductible applicable to the
48	48	claim. Reasonable proof of payment includes a canceled check,
49	49	money order receipt, credit card statement, or copy of an executed
50	50	installment plan contract or other financing arrangement that
51	51	requires full payment of the deductible over time. This subsection
52	52	does not prohibit an insurer from waiving any deductible amount.
53	53	(b) An insurer waiving a deductible owed by a policyholder
54	54	under a property insurance policy for any reason may not require as
55	55	a condition the policyholder's use of the insurer's preferred or
56	56	recommended contractor for the claim subject to the deductible.
57	57	SECTION 3. Section 707.004, Insurance Code, as amended by
58	58	this Act, applies only to an insurance policy delivered, issued for
59	59	delivery, or renewed on or after the effective date of this Act. A
60	60	policy delivered, issued for delivery, or renewed before the
61	61	effective date of this Act is governed by the law as it existed
62	62	immediately before the effective date of this Act, and that law is
63	63	continued in effect for that purpose.
64	64	SECTION 4. This Act takes effect September 1, 2023.