Texas Law
TEXAS HB 2102
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 pro- vide *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.
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