Texas Business & Commerce Code

§ 27.02 — GOODS OR SERVICES PAID FOR BY INSURANCE PROCEEDS: PAYMENT OF DEDUCTIBLE REQUIRED

BC § 27.02Title 3. INSOLVENCY, FRAUDULENT TRANSFERS, AND FRAUD · Ch. 27. FRAUD

Statute text

(a)In this section, "property insurance policy" has the meaning assigned by Section 707.001, 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:

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Legislative history

Acts 2019, 86th Leg., R.S., Ch. 1099 (H.B. 2102), Sec. 2, eff. September 1, 2019.