TEXAS HB 2102

“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 this Texas law for a person or business paid wholly or partly from 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. See SECTION 2.

Business & Commerce Code is amended to read as follows: Section 27.02. “Goods or Services Paid for by Insurance Proceeds: Payment of Deductible Required”

However, the new law provides that it is a violation of this law if a contractor:

Pays for,

Waives,

Absorbs,

Rebates,

Credits or Offsets or

Otherwise assists the insured in any other manner in avoiding monetary payment of the required insurance deductible or provides a good or service 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 to do so.

The new law creates a Class B misdemeanor offense of 180 days in county jail and a fine of up to $2000, for (1) a business or person who sells goods or services to provide *such a good or service in such a prohibited manner (violating contractor), (2) an insured (policyholder) who commits an offense if the person, in connection with a first party claim knowingly submits or allows a claim to be submitted in violation of subsection c, (the violation section directly above) unless the insured person promptly notifies the insurer of the violation.