By:  Conley                                            H.B. No. 276
       73R1945 PB-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the use of certain information in the determination of
    1-3  premium rates charged for motor vehicle insurance.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter A, Chapter 5, Insurance Code, is
    1-6  amended by adding Article 5.01A to read as follows:
    1-7        Art. 5.01A.  USE OF CERTAIN INFORMATION PROHIBITED IN
    1-8  DETERMINING RATES.  (a)  This article applies to motor vehicle
    1-9  insurance policies written by all insurers, as that term is used in
   1-10  Article 5.01(a) of this code, and includes a policy of motor
   1-11  vehicle insurance delivered, issued for delivery, or renewed in
   1-12  this state by a county mutual insurance company or by a surplus
   1-13  lines agent regulated under Article 1.14-2 of this code.
   1-14        (b)  In determining and prescribing premium rates under
   1-15  Subsections (a)-(e), Article 5.01 of this code, the Board may not
   1-16  authorize an insurer to charge an insured a premium for motor
   1-17  vehicle insurance coverage based solely on the location of the
   1-18  insured's primary residence that is higher than that insured would
   1-19  otherwise be liable to pay for identical coverage at a different
   1-20  location.
   1-21        (c)  In adopting a rate under Article 5.101 of this code, an
   1-22  insurer may not use a rating factor in the computation of the rate
   1-23  filed with the Board for motor vehicle insurance coverage that is
   1-24  based solely on the location of an insured's primary residence and
    2-1  results in a premium rate higher than the insured would otherwise
    2-2  be liable to pay for identical coverage at a different location.
    2-3  This subsection expires December 31, 1995.
    2-4        SECTION 2.  This Act takes effect September 1, 1993, and
    2-5  applies only to a policy of motor vehicle insurance that is
    2-6  delivered, issued for delivery, or renewed on or after January 1,
    2-7  1994.  A policy delivered, issued for delivery, or renewed before
    2-8  January 1, 1994, is governed by the law as it existed immediately
    2-9  before the effective date of this Act, and that law is continued in
   2-10  effect for that purpose.
   2-11        SECTION 3.  The importance of this legislation and the
   2-12  crowded condition of the calendars in both houses create an
   2-13  emergency and an imperative public necessity that the
   2-14  constitutional rule requiring bills to be read on three several
   2-15  days in each house be suspended, and this rule is hereby suspended.