Bill Summary – FastDemocracy

      
            88R6056 JES-F
         
		By: Leach
            H.B. No. 3476
         
               A BILL TO BE ENTITLED
            
               AN ACT
            
            relating to insurer restrictions and duties regarding repair of a 
         
            motor vehicle covered under an insurance policy.
         
                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         
                   SECTION 1.  Section 1952.301, Insurance Code, is amended to 
         
            read as follows:
         
                   Sec. 1952.301.  LIMITATIONS AND DUTIES REGARDING REPAIR OF 
         
            MOTOR VEHICLE [LIMITATION ON PARTS, PRODUCTS, OR REPAIR PERSONS OR 
         
            FACILITIES PROHIBITED].  (a)  In this section:
         
                         (1)  "New motor vehicle" has the meaning assigned by 
         
            Section 2301.002, Occupations Code.
         
                         (2)  "Non-original equipment" means a part, product, or 
         
            repair process used in the repair of a motor vehicle that is not 
         
            made by or for or used by that vehicle's manufacturer or 
         
            distributor.
         
                   (b)  Under an automobile insurance policy that is delivered, 
         
            issued for delivery, or renewed in this state, for damage to a motor 
         
            vehicle that has been owned by the insured for 36 months or less and 
         
            that was a new motor vehicle when delivered to the insured, the 
         
            insurer:
         
                         (1)  shall require that a part, product, or repair 
         
            process used to repair the vehicle be the original equipment 
         
            manufacturer's or distributor's part, product, or repair process, 
         
            unless the insured opts to use non-original equipment in accordance 
         
            with Subsection (f); and
         
                         (2)  may not limit the beneficiary of the policy from 
         
            selecting a repair person or facility to repair damage to the 
         
            vehicle.
         
                   (c)  Under [Except as provided by rules adopted by the 
         
            commissioner, under] an automobile insurance policy that is 
         
            delivered, issued for delivery, or renewed in this state, an 
         
            insurer may not directly or indirectly limit the insurer's coverage 
         
            under a policy covering damage to a motor vehicle that has been 
         
            owned by the insured for more than 36 months by:
         
                         (1)  specifying the brand, type, kind, age, vendor, 
         
            supplier, or condition of parts or products or the repair process
         
            that may be used to repair the vehicle; or
         
                         (2)  limiting the beneficiary of the policy from 
         
            selecting a repair person or facility to repair damage to the 
         
            vehicle.
         
                   (d)  In settling a liability claim by a third party against 
         
            an insured for property damage claimed by the third party for damage 
         
            to the third party's motor vehicle that has been owned by the third 
         
            party for 36 months or less and that was a new motor vehicle when 
         
            delivered to the third party, an insurer:
         
                         (1)  shall require that a part, product, or repair 
         
            process used to repair the vehicle be the original equipment 
         
            manufacturer's or distributor's part, product, or repair process, 
         
            unless the third-party claimant opts to use non-original equipment 
         
            in accordance with Subsection (f); and
         
                         (2)  may not require the third-party claimant to use a 
         
            particular repair person or facility to repair damage to the 
         
            vehicle.
         
                   (e) [(b)]  In settling a liability claim by a third party 
         
            against an insured for property damage claimed by the third party to 
         
            a motor vehicle that has been owned by the insured for more than 36 
         
            months, an insurer may not require the third-party claimant to have 
         
            the motor vehicle repairs made by a particular repair person or 
         
            facility or to use a particular brand, type, kind, age, vendor, 
         
            supplier, or condition of parts or products or a particular repair 
         
            process.
         
                   (f)  An insured or third-party claimant may opt to accept the 
         
            use of non-original equipment in the repair of the insured's or 
         
            claimant's motor vehicle by signing a written disclosure. The 
         
            disclosure must:
         
                         (1)  be signed before repair of the vehicle begins;
         
                         (2)  be delivered as an attachment to a written 
         
            estimate provided for the repair of the vehicle;
         
                         (3)  be written in at least a 12-point font; and
         
                         (4)  include the following language:
         
                   "I am opting to accept the use of a non-original equipment 
         
            manufacturer's or distributor's part, product, or repair process in 
         
            the repair of my vehicle, and I understand and agree that:
         
            Statutes affected: 
Introduced: Insurance Code 1952.301 (Insurance Code 1952)



	A BILL TO BE ENTITLED
	AN ACT
	relating to insurer restrictions and duties regarding repair of a
	motor vehicle covered under an insurance policy.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 1952.301, Insurance Code, is amended to
	read as follows:
	Sec. 1952.301. LIMITATIONS AND DUTIES REGARDING REPAIR OF
	MOTOR VEHICLE [~~LIMITATION ON PARTS, PRODUCTS, OR REPAIR PERSONS OR~~
	~~FACILITIES PROHIBITED~~]. (a) In this section:
	(1) "New motor vehicle" has the meaning assigned by
	Section 2301.002, Occupations Code.
	(2) "Non-original equipment" means a part, product, or
	repair process used in the repair of a motor vehicle that is not
	made by or for or used by that vehicle's manufacturer or
	distributor.
	(b) Under an automobile insurance policy that is delivered,
	issued for delivery, or renewed in this state, for damage to a motor
	vehicle that has been owned by the insured for 36 months or less and
	that was a new motor vehicle when delivered to the insured, the
	insurer:
	(1) shall require that a part, product, or repair
	process used to repair the vehicle be the original equipment
	manufacturer's or distributor's part, product, or repair process,
	unless the insured opts to use non-original equipment in accordance
	with Subsection (f); and
	(2) may not limit the beneficiary of the policy from
	selecting a repair person or facility to repair damage to the
	vehicle.
	(c) Under [~~Except as provided by rules adopted by the~~
	~~commissioner, under~~] an automobile insurance policy that is
	delivered, issued for delivery, or renewed in this state, an
	insurer may not directly or indirectly limit the insurer's coverage
	under a policy covering damage to a motor vehicle that has been
	owned by the insured for more than 36 months by:
	(1) specifying the brand, type, kind, age, vendor,
	supplier, or condition of parts or products or the repair process
	that may be used to repair the vehicle; or
	(2) limiting the beneficiary of the policy from
	selecting a repair person or facility to repair damage to the
	vehicle.
	(d) In settling a liability claim by a third party against
	an insured for property damage claimed by the third party for damage
	to the third party's motor vehicle that has been owned by the third
	party for 36 months or less and that was a new motor vehicle when
	delivered to the third party, an insurer:
	(1) shall require that a part, product, or repair
	process used to repair the vehicle be the original equipment
	manufacturer's or distributor's part, product, or repair process,
	unless the third-party claimant opts to use non-original equipment
	in accordance with Subsection (f); and
	(2) may not require the third-party claimant to use a
	particular repair person or facility to repair damage to the
	vehicle.
	(e) [~~(b)~~] In settling a liability claim by a third party
	against an insured for property damage claimed by the third party to
	a motor vehicle that has been owned by the insured for more than 36
	months, an insurer may not require the third-party claimant to have
	the motor vehicle repairs made by a particular repair person or
	facility or to use a particular brand, type, kind, age, vendor,
	supplier, or condition of parts or products or a particular repair
	process.
	(f) An insured or third-party claimant may opt to accept the
	use of non-original equipment in the repair of the insured's or
	claimant's motor vehicle by signing a written disclosure. The
	disclosure must:
	(1) be signed before repair of the vehicle begins;
	(2) be delivered as an attachment to a written
	estimate provided for the repair of the vehicle;
	(3) be written in at least a 12-point font; and
	(4) include the following language:
	"I am opting to accept the use of a non-original equipment
	manufacturer's or distributor's part, product, or repair process in
	the repair of my vehicle, and I understand and agree that:
Statutes affected: Introduced: Insurance Code 1952.301 (Insurance Code 1952)