Violating the new deductibles law can also lead to fraud charges against the Contractor and the Property Owner for anyone who misrepresents the payment of an insurance deductible to an insurance company for the purpose of obtaining release of the depreciation or any other insurance company holdback.
Because Section 707.004, known as the reasonable proof of payment provision, requires the Owner to provide proof that the deductible has been paid or is being repaid under a qualifying repayment plan.
This “reasonable proof” is defined as: a “canceled check, money order receipt, credit card statement, or copy of an executed installment plan contract or other financing arrangement that requires full payment of the deductible over time.” (Tex. Ins. Code §707.004.)
In order to keep itself and its customers from violating this new law or committing insurance fraud, NewRuf follows this new law by collecting all required deductibles. If a property owner believes that paying the deductible, even if paying over time, would create a financial burden, the owner should ask its insurance adjuster to waive the requirement to pay the deductible.