Sellers may not tie goods or services to an insured’s deductible or overcharge to offset it, and insureds may not submit or allow claims for those prohibited transactions.
SUBPART G. PAYMENT, REBATE, AND CREDIT OF INSURANCE DEDUCTIBLES §451. Payments and rebates charged against insurance deductibles; sellers of goods or services prohibited A. No person selling or engaged in the sale of goods or services shall: (1) Provide goods or services or advertise or promise to provide goods or services to an insured in a transaction in which the goods or services will be paid for by the insured from the proceeds of the property insurance claim and, without the insurer's consent, the person selling the goods or services agrees to do any of the following: (a) Pay, waive, absorb, or otherwise decline to charge or collect the amount of the insured's deductible. (b) Provide a rebate in connection with the sale of the goods or services that will offset all or part of the amount paid by the insured as a deductible. (c) In any manner, assist the insured in avoiding monetary payment of the insured's deductible. (2) Charge an amount for such goods or services that exceeds the usual and customary charge by an amount equal to or greater than all or part of the applicable insurance deductible paid. B. No person insured under a property or casualty insurance policy shall submit a claim or knowingly allow a claim to be submitted under the policy for payment of any goods or services that are in violation of Subsection A. C. An insured person shall be held in violation of this Section, unless he, the insured, promptly notifies the insurer of suspected excessive charges or other violations made by the person selling or engaged in the sale of goods or services. D. Whoever violates this Section shall be fined not more than five hundred dollars or imprisoned for not more than thirty days, or both, for each offense, and each offense shall constitute a separate violation. Acts 1991, No. 608, §2; Acts 2022, No. 734, §2.