REQUIRED NOTICE TO INSURANCE CLAIMANTS OR MOTOR VEHICLE REPAIRS

By law, you have the right to select where your motor vehicle is repaired and the parts used for repairs.  However, an insurance company is not required to pay more than a reasonable amount for such repairs and parts.  Your statutory rights regarding motor vehicle repairs are explained in the copy of the Insurance Code §§1952.301 to 1952.307, printed below this notice.  If the costs of repairing your vehicle are to be paid under an insurance policy issued by us, the nature of the coverage is stated in more detail in the applicable policy.
For question about your statutory rights regarding motor vehicle repairs under the Insurance Code §§1952.301 to 1952.307, contact the Texas Department of Insurance.  You may write to the Consumer Protection Division at P.O. Box 149091, Austin TX 78714-9091, call 1-800-252-3439, fax 1-512-475-1771, e-mail ConsumerProtection@tdi.state.tx.us, or visit the Department online at http://www.tdi.state.tx.us.

 

Insurance Code 1952.301
(a) 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 by:
(1) specifying the brand, type, kind, age, vendor, supplier or condition of parts or products 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
(b) In settling a liability claim by a third party against an insured for property damage claimed by the third party, an insurer may not require the third-party claimant to have 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.

Insurance Code 1952.302
In connection with the repair of damage to a motor vehicle covered under an automobile insurance policy, an insurer, an employee or agent of an insurer, an insurance adjuster, or an entity that employs an insurance adjuster may not:
(1) solicit or accept a referral fee or gratuity in exchange for referring a beneficiary or third-party claimant to a repair person or facility to repair the damage;
(2) state or suggest, either orally or in writing, to a beneficiary that the beneficiary or third-party claimant to a repair person or facility  or a repair person or facility    identified on a preferred list compiled by an insurer for the damage repair or parts replacement to be covered by the policy; or
(3) restrict the right of a beneficiary or third-party claimant to choose a repair person or facility by requiring the beneficiary or third-party claimant to travel an unreasonable distance to repair the damage.

Insurance Code 1952.303
(a) A contract between an insurer and a repair person or facility, including an agreement under which the repair person or facility agrees to extend discounts for parts or labor to the insurer in exchange for referrals by the insurer, may not result in a reduction of coverage under an insured’s automobile insurance policy.
(b) The commissioner may adopt rules under Chapter 542 with respect to any fraudulent activity of any party to an agreement described by Subsection (a).

Insurance Code 1952.304
An insurer may not prohibit a repair person or facility from providing a beneficiary or third-party claimant with information that states:
(1) the description, manufacturer, or source of the parts used; and
(2) the amounts charged to the insurer for the parts and related labor.

Insurance Code 1952.305
(a) At the time a motor vehicle is presented to an insurer, an insurance adjuster, or other person in connection with a claim for damage repair, the insurer, insurance adjuster, or other person shall provide to the beneficiary or third-party claimant notice of the provisions of the subchapter.
(b) The commissioner shall adopt a rule establishing the method or methods insurers must use to comply with the notice provisions of this section.

Insurance Code 1952.306
A beneficiary, third-party claimant, or repair person or facility may submit a written documented complaint to the department with respect to an alleged violation of this subchapter.

Insurance Code 1952.307
Rules adopted by the commissioner to implement this subchapter must include requirements that:
(1) any limitation described by Section 1952301(a) be clearly and prominently displayed on the face of the insurance policy or certificate in lieu of an insurance policy; and
(2) the insured give written consent to a limitation described by Section 1952.301(a) after the insured is notified orally and in writing of the limitation at the time the insurance policy is purchased.