{"data":{"id":"us-tx/tex.-business-commerce-code-27.02","jurisdiction":"us-tx","citation":"Tex. Business \u0026 Commerce Code § 27.02","heading":"GOODS OR SERVICES PAID FOR BY INSURANCE PROCEEDS: PAYMENT OF DEDUCTIBLE REQUIRED.","body":"(a) In this section, \"property insurance policy\" has the meaning assigned by Section 707.001, Insurance Code.\n(b) A contract to provide a good or service that is reasonably expected to be paid wholly or partly from the proceeds of a claim under a property insurance policy and that has a contract price of $1,000 or more must contain the following notice in at least 12-point boldfaced type: \"Texas law requires a person insured under a property insurance policy to pay any deductible applicable to a claim made under the policy. It is a violation of Texas law for a seller of goods or services who reasonably expects to be paid wholly or partly from the proceeds of a property insurance claim to knowingly allow the insured person to fail to pay, or assist the insured person's failure to pay, the applicable insurance deductible.\"\n(c) A person who sells goods or services commits an offense if the person:\n(1) advertises or promises to provide a good or service to an insured under a property insurance policy in a transaction in which:\n(A) the good or service will be paid for by the insured from the proceeds of a property insurance claim; and\n(B) the person selling the good or service will, without the insurer's consent:\n(i) pay, waive, absorb, or otherwise decline to charge or collect the amount of the insured's deductible;\n(ii) provide a rebate or credit in connection with the sale of the good or service that will offset all or part of the amount paid by the insured as a deductible; or\n(iii) in any other manner assist the insured in avoiding monetary payment of the required insurance deductible; or\n(2) provides a good or service to an insured under a property insurance policy 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:\n(A) pays, waives, absorbs, or otherwise declines to charge or collect the amount of the insured's deductible;\n(B) provides a rebate or credit in connection with the sale of the good or service that offsets all or part of the amount paid by the insured as a deductible; or\n(C) in any other manner assists the insured in avoiding monetary payment of the required insurance deductible.\n(d) An offense under this section is a Class B misdemeanor.\nAdded by Acts 1989, 71st Leg., ch. 898, Sec. 1, eff. Sept. 1, 1989.\nAmended by:\nActs 2019, 86th Leg., R.S., Ch. 1099 (H.B. 2102), Sec. 2, eff. September 1, 2019.","path":["BUSINESS AND COMMERCE CODE","TITLE 3. INSOLVENCY, FRAUDULENT TRANSFERS, AND FRAUD","CHAPTER 27. FRAUD"],"source_url":"https://statutes.capitol.texas.gov/Docs/BC/htm/BC.27.htm#27.02","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:56Z","sha256":"503cab329d38ca4b18d467500e8bc6690494cb496a0ae8108d2af54dc213faf7","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-commerce-code-27.015","next":"us-tx/tex.-business-commerce-code-51.001"},"notice":"GroundRules: Original legal text. Not legal advice."}