87(R) HB 1433 - Engrossed version - Bill Text
 
 
  By:  Capriglione, Oliverson H.B.  No.  1433
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the payment of insurance deductibles for property
  insurance claims.
               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
               SECTION  1.    Section 27.02(c), Business & Commerce Code, is
  amended to read as follows:
               (c)    A person who sells goods or services commits an offense
  if the person:
                           (1)    advertises or promises to provide a good or
  service to an insured under a property insurance policy in a
  transaction in which:
                                       (A)    the good or service will be paid for by the
  insured from the proceeds of a property insurance claim; and
                                       (B)    the person selling the good or service will[,
  without the insurer's consent]:
                                                   (i)    pay, waive, absorb, or otherwise
  decline to charge or collect the amount of the insured's
  deductible;
                                                   (ii)    provide a rebate or credit in
  connection with the sale of the good or service that will offset all
  or part of the amount paid by the insured as a deductible; or
                                                   (iii)    in any other manner assist the
  insured in avoiding monetary payment of the required insurance
  deductible; or
                           (2)    provides a good or service to an insured under a
  property insurance policy knowing that the insured will pay for the
  good or service with the proceeds of a claim under the policy and[,
  without the insurer's consent]:
                                       (A)    pays, waives, absorbs, or otherwise declines
  to charge or collect the amount of the insured's deductible;
                                       (B)    provides a rebate or credit in connection
  with the sale of the good or service that offsets all or part of the
  amount paid by the insured as a deductible; or
                                       (C)    in any other manner assists the insured in
  avoiding monetary payment of the required insurance deductible.
               SECTION  2.    Section 707.004, Insurance Code, is amended to
  read as follows:
               Sec.  707.004.    [REASONABLE PROOF OF] PAYMENT OF DEDUCTIBLE.
  (a) An insurer that issues a property insurance policy with
  replacement cost coverage shall [may] refuse to pay a claim for
  withheld recoverable depreciation or a replacement cost holdback
  under the policy until the insurer receives reasonable proof of
  payment by the policyholder of any deductible applicable to the
  claim. Reasonable proof of payment includes a canceled check,
  money order receipt, credit card statement, or copy of an executed
  installment plan contract or other financing arrangement that
  requires full payment of the deductible over time.
               (b)    An insurer waiving a deductible owed by a policyholder
  under a property insurance policy for any reason may not require as
  a condition the policyholder's use of the insurer's preferred or
  recommended contractor for the claim subject to the deductible.
               SECTION  3.    Section 707.004, Insurance Code, as amended by
  this Act, applies only to an insurance policy delivered, issued for
  delivery, or renewed on or after the effective date of this Act. A
  policy delivered, issued for delivery, or renewed before the
  effective date of this Act is governed by the law as it existed
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
               SECTION  4.    This Act takes effect September 1, 2021.

Statutes affected:
Introduced: 27.02 Commerce Code, 707.004 Insurance Code
House Committee Report: 27.02 Commerce Code, 707.004 Insurance Code
Engrossed: 27.02 Commerce Code, 707.004 Insurance Code