Texas Senate Approves DRP Full Disclosure Bill - BodyShop Business

Texas Senate Approves DRP Full Disclosure Bill

The Texas Senate has approved S.B. 1300, a bill requiring insurers to explain to claimants the difference between repair processes and claims handled via DRP and non-DRP shops. The bill would also require insurers to respond to a shop’s request for information about joining a DRP with a written disclosure explaining the requirements to become a contracted DRP facility with that insurer.

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 a written notice summarizing 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 a summary 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."

Regarding disclosing DRP information to shops, the bill states:

"An insurer 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. This section does not require an insurer to contract with an inquiring automobile repair facility."

S.B. 1300 is now being considered by the House Insurance Committee.

S.B. 1300 is identical to Texas H.B. 2276, which was introduced in March but has had no action taken on it.

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