Bill Text: TX HB2102 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the payment of insurance deductibles related to property insurance policies; creating a criminal offense.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB2102 Detail]
Download: Texas-2019-HB2102-Enrolled.html
H.B. No. 2102 |
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relating to the payment of insurance deductibles related to | ||
property insurance policies; creating a criminal offense. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle F, Title 5, Insurance Code, is amended | ||
by adding Chapter 707 to read as follows: | ||
CHAPTER 707. PAYMENT OF INSURANCE DEDUCTIBLE | ||
Sec. 707.001. DEFINITIONS. In this chapter: | ||
(1) "Person" means an individual, corporation, | ||
association, partnership, limited liability company, or other | ||
legal entity. | ||
(2) "Property insurance policy" means an insurance | ||
policy issued by an insurer, including a county mutual insurance | ||
company, farm mutual insurance company, Lloyd's plan, or reciprocal | ||
or interinsurance exchange, that provides first-party coverage for | ||
loss of or damage to real property. | ||
Sec. 707.002. PAYMENT OF DEDUCTIBLE REQUIRED. A person | ||
insured under a property insurance policy shall pay any deductible | ||
applicable to a first-party claim made under the policy. | ||
Sec. 707.003. CONSUMER EDUCATION. The department, in | ||
coordination with other state agencies and stakeholders as | ||
necessary, shall develop and implement an education program related | ||
to the payment of property insurance policy deductibles. The | ||
program must: | ||
(1) provide reasonable methods to educate insurance | ||
consumers and providers of goods or services that are regularly | ||
paid for from proceeds of property insurance claims; and | ||
(2) include information regarding: | ||
(A) the requirements of this chapter and Section | ||
27.02, Business & Commerce Code; and | ||
(B) the conduct prohibited by Section 27.02, | ||
Business & Commerce Code. | ||
Sec. 707.004. REASONABLE PROOF OF PAYMENT. An insurer that | ||
issues a property insurance policy with replacement cost coverage | ||
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. | ||
Sec. 707.005. RULEMAKING. The commissioner may adopt rules | ||
as necessary to implement this chapter. Section 2001.0045, | ||
Government Code, does not apply to rules adopted under this | ||
section. | ||
SECTION 2. Section 27.02, Business & Commerce Code, is | ||
amended to read as follows: | ||
Sec. 27.02. GOODS OR SERVICES PAID FOR BY INSURANCE | ||
PROCEEDS: PAYMENT OF DEDUCTIBLE REQUIRED [ |
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policy" has the meaning assigned by Section 707.001, Insurance | ||
Code. | ||
(b) A contract to provide a good or service that is | ||
reasonably expected to be paid wholly or partly from the proceeds of | ||
a claim under a property insurance policy and that has a contract | ||
price of $1,000 or more must contain the following notice in at | ||
least 12-point boldfaced type: "Texas law requires a person | ||
insured under a property insurance policy to pay any deductible | ||
applicable to a claim made under the policy. It is a violation of | ||
Texas law for a seller of goods or services who reasonably expects | ||
to be paid wholly or partly from the proceeds of a property | ||
insurance claim to knowingly allow the insured person to fail to | ||
pay, or assist the insured person's failure to pay, the applicable | ||
insurance deductible." | ||
(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. [ |
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(d) [ |
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misdemeanor. | ||
SECTION 3. The changes in law made by this Act to Section | ||
27.02, Business & Commerce Code, apply only to an offense committed | ||
on or after the effective date of this Act. An offense committed | ||
before the effective date of this Act is governed by the law in | ||
effect on the date the offense was committed, and the former law is | ||
continued in effect for that purpose. For purposes of this section, | ||
an offense was committed before the effective date of this Act if | ||
any element of the offense occurred before that date. | ||
SECTION 4. Section 27.02(b), Business & Commerce Code, as | ||
amended by this Act, applies only to a contract entered into on or | ||
after the effective date of this Act. | ||
SECTION 5. This Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2102 was passed by the House on May 3, | ||
2019, by the following vote: Yeas 136, Nays 4, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 2102 on May 24, 2019, by the following vote: Yeas 82, Nays 50, | ||
2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2102 was passed by the Senate, with | ||
amendments, on May 22, 2019, by the following vote: Yeas 31, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |