Tex.
Bus. & Com. Code Section 27.02
Goods or Services Paid for by Insurance Proceeds: Payment of Deductible Required
(a)
In this section, “property insurance policy” has the meaning assigned by Section 707.001 (Definitions), 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.(d)
An offense under this section is a Class B misdemeanor.
Source:
Section 27.02 — Goods or Services Paid for by Insurance Proceeds: Payment of Deductible Required, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.27.htm#27.02 (accessed Jun. 5, 2024).
