TITLE: Relating to insurer restrictions and duties regarding repair of a motor vehicle covered under an insurance policy.

SUMMARY: Relating to insurer restrictions and duties regarding repair of a motor vehicle covered under an insurance policy.

FULL TEXT:
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) 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 an unexpired manufacturer's warranty. (a-1) Conduct prohibited by Subsection (a) includes [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,unless the specified part, product, or repair process is the manufacturer's warranted part, product, or repair process;or (2) limiting the beneficiary of the policy from selecting a repair person or facility to repair damage to the vehicle. (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 an unexpired manufacturer's warranty,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, unless the part, product, or repair process is the manufacturer's warranted part, product, or repair process.(c) If a covered repair to a third party's or the insured's motor vehicle requires an original equipment manufacturer's part or product that is no longer manufactured to restore the motor vehicle to the vehicle's pre-damaged condition, the insurer shall use the insurer's best efforts to ensure the repair can be made using that necessary part or product along with any necessary repair process. SECTION 2. The change in law made by this Act applies only to an insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2022. A policy delivered, issued for delivery, or renewed before that date 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 3. This Act takes effect September 1, 2021.