(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Business day--A day other than a Saturday, Sunday, or holiday recognized by the State of Texas.
  (2) Insurer--An insurer or any person authorized to act on behalf of an insurer regarding damage to a vehicle, regardless of whether employed by the insurer.
(b) An insurer must give the notice prescribed by subsection (h) of this section (hereinafter referred to as the written notice) to any insured or third-party claimant who makes a claim regarding damage to a vehicle. If a claimant presents the vehicle to the insurer in connection with a claim for damage repair, or otherwise makes the claim in person, the written notice must be given to the claimant at that time.
(c) If the claim is made instead in writing (including e-mail or FAX), an insurer must mail the written notice to the claimant within three business days of receiving notice of the claim, unless the insurer otherwise delivers the claimant the written notice within those three business days.
(d) If the claim is made by telephone, an insurer must:
  (1) mail the written notice to the claimant within three business days; or
  (2) give the verbal notice prescribed by subsection (i) of this section (hereinafter referred to as the verbal notice) to the claimant at the time of the claimant's telephone call and mail the written notice to the claimant within 15 business days of receiving notice of the claim.
(e) An insurer, if it chooses to address the liability issue initially, may send or deliver its own letter along with the written notice. The written and verbal notice may include the Optional Provision. The written notice must be on a separate page from any letter or other material, except as otherwise provided in this section.
(f) Notwithstanding any other subsection of this section, no insurer is required to furnish more than one written notice to the insured or third party claimant in regard to the claim.
(g) These notice requirements do not apply to towing and labor costs coverage.
(h) The written notice must be printed in at least ten-point type with the insurer's name, mailing address, phone number, and fax number printed in bold face type. The insurer may provide an e-mail address or web address printed in bold face type. The notice must be attached to, or printed on the reverse side of, a copy of the Insurance Code §§1952.301 - 1952.307. The written notice must read as follows:
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(i) The verbal notice at a minimum must consist of the following: BY LAW, YOU HAVE THE RIGHT TO SELECT WHERE YOUR MOTOR VEHICLE IS REPAIRED AND THE PARTS USED FOR REPAIRS. HOWEVER, AN INSURANCE COMPANY IS NOT REQUIRED TO PAY MORE THAN A REASONABLE AMOUNT FOR SUCH REPAIRS AND PARTS. YOUR RIGHTS CONCERNING MOTOR VEHICLE REPAIRS ARE EXPLAINED IN THE INSURANCE CODE §§1952.301 - 1952.307, A COPY OF WHICH WILL BE MAILED TO YOU WITHIN 15 BUSINESS DAYS. IF YOU HAVE ANY QUESTIONS ABOUT YOUR MOTOR VEHICLE REPAIR RIGHTS, CONTACT THE TEXAS DEPARTMENT OF INSURANCE AT 1-800-252-3439.
(j) These amendments are effective April 1, 2007.

Source Note: The provisions of this §5.501 adopted to be effective July 12, 1998, 23 TexReg 6962; amended to be effective October 12, 2006, 31 TexReg 8372