A bill introduced in the Texas House of Representatives, H.B. 2276, would require insurers to disclose to claimants the difference in repair processes and claims payments for DRP versus non-DRP shops. The bill would also require insurers to disclose to collision repair facilities the requirements to gain a DRP contract with the company.
For disclosure to collision repair shops, the bill states insurers must:
"provide an automobile repair facility that submits a written request
with a written disclosure explaining the requirements to become a
contracted direct repair facility with that insurer not later than the
30th day after the date the insurer receives the request."
With regard to disclosure to claimants, the bill states:
"At the time a motor vehicle is presented to an insurer, insurance adjuster, or other person in connection with a claim for damage repair, the insurer shall provide the claimant with written notice describing the insurer’s policies and procedures for repair processes and claims payments for direct repair facilities and non-direct repair facilities. The notice must include an explanation of how the insurer’s policies and procedures for repair processes and claims payments for direct repair facilities and non-direct repair facilities differ."
The bill was referred to the House Insurance Committee on March 10.
Read the full text of the bill
