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Texas Business & Commerce Code - Section 27.02. Certain Insurance Claims For Excessive Charges

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 27.02. Certain Insurance Claims For Excessive Charges

§ 27.02. CERTAIN INSURANCE CLAIMS FOR EXCESSIVE 
CHARGES.  (a) A person who sells goods or services commits an 
offense if:
		(1)  the person advertises or promises to provide the 
good or service and to pay:
			(A)  all or part of any applicable insurance 
deductible;  or               
			(B)  a rebate in an amount equal to all or part of 
any applicable insurance deductible;
		(2)  the good or service is paid for by the consumer 
from proceeds of a property or casualty insurance policy;  and
		(3)  the person knowingly charges an amount for the 
good or service that exceeds the usual and customary charge by the 
person for the good or service by an amount equal to or greater than 
all or part of the applicable insurance deductible paid by the 
person to an insurer on behalf of an insured or remitted to an 
insured by the person as a rebate.
	(b)  A person who is insured under a property or casualty 
insurance policy commits an offense if the person:
		(1)  submits a claim under the policy based on charges 
that are in violation of Subsection (a) of this section;  or
		(2)  knowingly allows a claim in violation of 
Subsection (a) of this section to be submitted, unless the person 
promptly notifies the insurer of the excessive charges.
	(c)  An offense under this section is a Class A misdemeanor.                   

Added by Acts 1989, 71st Leg., ch. 898, § 1, eff. Sept. 1, 1989.           

Last modified: August 10, 2007