SB1429 - Relating to insurer restrictions and duties regarding repair of a motor vehicle covered under an insurance policy.

  89R14681 SCR-F     By: Hughes S.B. No. 1429       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:                 1.     the attached repair estimate is based on the use of   a non-original equipment manufacturer's or distributor's part,   product, or repair process that is supplied by a manufacturer or   distributor that is not my motor vehicle's manufacturer or   distributor; and                 2.     the warranty for the non-original equipment   manufacturer's or distributor's part, product, or repair process is   provided by the manufacturer or distributor of that part, product,   or repair process and not by my motor vehicle's manufacturer or   distributor."           (g)     An insurer that delivers, issues for delivery, or renews   an automobile insurance policy in this state may not require or   request that a repair person or facility use any specific   percentage of non-original equipment in the repair of a motor   vehicle.          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, 2026. 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, 2025.