By: Johnson, Perry	S.B. No. 1268

	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.  This subsection
	does not prohibit an insurer from waiving any deductible amount.
	(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, 2023.

Statutes affected:
Introduced: Commerce Code 27.02, Insurance Code 707.004 (Insurance Code 707, Commerce Code 27)
Senate Committee Report: Commerce Code 27.02, Insurance Code 707.004 (Insurance Code 707, Commerce Code 27)
Engrossed: Commerce Code 27.02, Insurance Code 707.004 (Insurance Code 707, Commerce Code 27)