Texas Bill Addressing TPA/Insurer Ownership
of Auto Glass Businesses Progresses
May 13, 2011
A Texas bill designed to address cases in which a third-party administrator
(TPA) holds at least a 10 percent in an auto glass "service"
has passed from the House's Licensing and Administrative Procedures
Committee on to the full House for review-but with a few changes
from the original wording.
While the original
bill would have specified a prohibition against an insurer or
TPA "owning or requiring an in interest in an automotive glass
repair service," the newest version
of the bill prohibits TPAs that hold at least a 10-percent ownership
interest in an "automotive glass repair service" from
referring a third-party claimant or insured to the company; coercing
a third-party claimant or insured to utilize the company's services,
and using consumer information obtained in the process of acting
as a third-party administrator to solicit business for the auto
The bill defines "automotive glass repair service" as
a person that engages in the business of automotive glass work.
The bill also previously required language related to auto glass
"inspections," and would have specified that such "inspectors"
be direct employees of the insurer and not affiliated with any auto
glass company. However, this language also has been removed.
The bill was introduced by Texas Rep. Senfronia Thompson (D-Texas).
If passed, the bill would take effect on September 1.
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