Bill > HB3960

This bill amends the Texas Insurance Code to prohibit insurers from directly or indirectly limiting their coverage under an automobile insurance policy for damage to a motor vehicle that has an unexpired manufacturer's warranty. Insurers cannot specify the brand, type, kind, age, vendor, supplier, or condition of parts or products used to repair the vehicle, unless the specified part, product, or repair process is the manufacturer's warranted part, product, or repair process. Insurers also cannot limit the policyholder from selecting a repair person or facility. Additionally, when settling a liability claim by a third party against an insured for property damage to a motor vehicle with an unexpired warranty, the insurer cannot require the third-party claimant to use a particular brand, type, kind, age, vendor, supplier, or condition of parts or products, or a particular repair process, unless it is the manufacturer's warranted part, product, or repair process. The changes made by this bill apply to insurance policies delivered, issued for delivery, or renewed on or after January 1, 2022.