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
 
 
 
 
AN ACT
  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 [CERTAIN INSURANCE CLAIMS
  FOR EXCESSIVE CHARGES].  (a)  In this section, "property insurance
  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. [A
  person who sells goods or services commits an offense if:
               [(1)     the person advertises or promises to provide the
  good or service and to pay:
                     [(A)     all or part of any applicable insurance
  deductible; or
                     [(B)     a rebate in an amount equal to all or part of
  any applicable insurance deductible;
               [(2)     the good or service is paid for by the consumer
  from proceeds of a property or casualty insurance policy; and
               [(3)     the person knowingly charges an amount for the
  good or service that exceeds the usual and customary charge by the
  person for the good or service by an amount equal to or greater than
  all or part of the applicable insurance deductible paid by the
  person to an insurer on behalf of an insured or remitted to an
  insured by the person as a rebate.
         [(b)     A person who is insured under a property or casualty
  insurance policy commits an offense if the person:
               [(1)     submits a claim under the policy based on charges
  that are in violation of Subsection (a) of this section; or
               [(2)     knowingly allows a claim in violation of
  Subsection (a) of this section to be submitted, unless the person
  promptly notifies the insurer of the excessive charges.]
         (d) [(c)]  An offense under this section is a Class B [A]
  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       
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