By: Brimer H.B. No. 292
73R1654 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to proof of financial responsibility for operation of a
1-3 motor vehicle.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1B(a), Texas Motor Vehicle
1-6 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
1-7 Statutes), is amended to read as follows:
1-8 (a) As a condition of operating a motor vehicle in this
1-9 state, the operator of the motor vehicle shall furnish, on request
1-10 of a peace officer or a person involved in an accident with the
1-11 operator:
1-12 (1) a liability insurance policy in at least the
1-13 minimum amounts required by this Act, or a photocopy of that
1-14 policy, that covers the vehicle and that includes the name,
1-15 address, and telephone number of the agent through whom the policy
1-16 is written;
1-17 (2) a standard proof of liability insurance form
1-18 promulgated by the Texas Department of Insurance and issued by a
1-19 liability insurer that:
1-20 (A) includes the name of the insurer;
1-21 (B) includes the insurance policy number;
1-22 (C) includes the policy period;
1-23 (D) includes the name and address of each
1-24 insured;
2-1 (E) includes the policy limits or a statement
2-2 that the coverage of the policy complies with at least the minimum
2-3 amounts of liability insurance required by this Act; <and>
2-4 (F) includes the make and model of each covered
2-5 vehicle; and
2-6 (G) includes the name, address, and telephone
2-7 number of the agent through whom the policy is written;
2-8 (3) an insurance binder that confirms that the
2-9 operator is in compliance with this Act and that includes the name,
2-10 address, and telephone number of the agent that bound the coverage;
2-11 (4) a certificate or copy of a certificate issued by
2-12 the department that shows the vehicle is covered by self-insurance;
2-13 (5) a certificate issued by the state treasurer that
2-14 shows that the owner of the vehicle has on deposit with the
2-15 treasurer money or securities in at least the amount required by
2-16 Section 25 of this Act;
2-17 (6) a certificate issued by the department that shows
2-18 that the vehicle is a vehicle for which a bond is on file with the
2-19 department as provided by Section 24 of this Act; or
2-20 (7) a copy of a certificate issued by the county judge
2-21 of a county in which the vehicle is registered that shows that the
2-22 owner of the vehicle has on deposit with the county judge cash or a
2-23 cashier's check in at least the amount required by Section 1A(b)(6)
2-24 of this Act.
2-25 SECTION 2. Section 1F, Texas Motor Vehicle
2-26 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
2-27 Statutes), is amended by amending Subsection (f) and adding
3-1 Subsection (f-1) to read as follows:
3-2 (f) The following evidence of financial responsibility or a
3-3 photocopy of the evidence satisfies the requirement of Subsection
3-4 (e) of this section:
3-5 (1) a liability insurance policy in at least the
3-6 minimum amounts required by this Act to provide proof of financial
3-7 responsibility that covers <covering> at least the period required
3-8 by Subsection (e) of this section and that includes the name,
3-9 address, and telephone number of the agent through whom the policy
3-10 is written;
3-11 (2) a standard proof of liability insurance form
3-12 promulgated by the Texas Department of Insurance and issued by a
3-13 liability insurer that includes:
3-14 (A) the name of the insurer;
3-15 (B) the insurance policy number;
3-16 (C) the policy period, which must equal or
3-17 exceed the period required by Subsection (e) of this section;
3-18 (D) the name and address of each insured; <and>
3-19 (E) the policy limits or a statement that the
3-20 coverage of the policy complies with at least the minimum amounts
3-21 of liability insurance required by this Act; and
3-22 (F) the name, address, and telephone number of
3-23 the agent through whom the policy is written;
3-24 (3) an insurance binder that confirms to the
3-25 satisfaction of the court that the defendant is in compliance with
3-26 this Act for at least the period required by Subsection (e) of this
3-27 section and that includes the name, address, and telephone number
4-1 of the agent that bound the coverage;
4-2 (4) a copy of a certificate issued by the Department
4-3 of Public Safety that shows that the vehicle to be registered is
4-4 covered by self-insurance;
4-5 (5) a certificate issued by the state treasurer that
4-6 shows that the owner of the vehicle has on deposit with the
4-7 treasurer money or securities in at least the amount required by
4-8 Section 25 of this Act;
4-9 (6) a certificate issued by the Department that shows
4-10 that the vehicle is a vehicle for which a bond is on file with the
4-11 Department as provided by Section 24 of this Act; or
4-12 (7) a copy of a certificate issued by the county judge
4-13 of a county in which the vehicle is registered that shows that the
4-14 owner of the vehicle has on deposit with the county judge cash or a
4-15 cashier's check in at least the amount required by Section 1A(b)(6)
4-16 of this Act.
4-17 (f-1) If the defendant submits evidence of financial
4-18 responsibility described by Subsection (f)(1), (2), or (3) of this
4-19 section, the court may not order the release of the impounded motor
4-20 vehicle unless the agent shown on the policy, proof of liability
4-21 insurance form, or insurance binder or a designated employee of the
4-22 agent confirms that the policy or binder is in effect.
4-23 Confirmation may be made by telephone or by a written facsimile
4-24 transmission.
4-25 SECTION 3. Section 2a, Chapter 88, General Laws, Acts of the
4-26 41st Legislature, 2nd Called Session, 1929 (Article 6675a-2a,
4-27 Vernon's Texas Civil Statutes), is amended by amending Subsection
5-1 (d) and adding Subsection (d-1) to read as follows:
5-2 (d) The following evidence of financial responsibility or a
5-3 photocopy of the evidence satisfies the requirement of this
5-4 section:
5-5 (1) a liability insurance policy in at least the
5-6 minimum amounts required by the Texas Motor Vehicle
5-7 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
5-8 Statutes) that covers at least the period required by Subsection
5-9 (a) of this section and that includes the name, address, and
5-10 telephone number of the agent through whom the policy is written;
5-11 (2) a <or> liability self-insurance or pool coverage
5-12 document issued by a political subdivision or governmental pool
5-13 pursuant to the authority contained in Chapter 791, Government Code
5-14 <The Interlocal Cooperation Act (Article 4413(32c), Vernon's Texas
5-15 Civil Statutes)>, Chapter 119, Local Government Code, or other
5-16 applicable law in at least the minimum amounts required by the
5-17 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
5-18 Vernon's Texas Civil Statutes) to provide proof of financial
5-19 responsibility covering at least the period required by Subsection
5-20 (a) of this section;
5-21 (3) <(2)> a standard proof of liability form
5-22 promulgated by the Texas Department of Insurance and issued by a
5-23 liability insurer that includes:
5-24 (A) the name of the insurer;
5-25 (B) the insurance policy or other coverage
5-26 document number;
5-27 (C) the policy or other coverage document
6-1 coverage period;
6-2 (D) the name and address of each insured or
6-3 covered person;
6-4 (E) the policy or other coverage document limits
6-5 or a statement that the coverage of the policy complies with at
6-6 least the minimum amounts of liability insurance required by the
6-7 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
6-8 Vernon's Texas Civil Statutes); <and>
6-9 (F) the make and model of each covered vehicle;
6-10 and
6-11 (G) the name, address, and telephone number of
6-12 the agent through whom the policy is written;
6-13 (4) <(3)> an insurance binder that confirms to the
6-14 satisfaction of the county tax collector that the owner of the
6-15 motor vehicle to be registered is in compliance with the Texas
6-16 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
6-17 Texas Civil Statutes) for at least the period required by
6-18 Subsection (a) of this section and that includes the name, address,
6-19 and telephone number of the agent that bound the coverage;
6-20 (5) <(4)> a copy of a certificate issued by the
6-21 Department of Public Safety that shows that the vehicle to be
6-22 registered is covered by self-insurance;
6-23 (6) <(5)> a certificate issued by the state treasurer
6-24 that shows that the owner of the vehicle has on deposit with the
6-25 treasurer money or securities in at least the amount required by
6-26 Section 25 of the Texas Motor Vehicle Safety-Responsibility Act
6-27 (Article 6701h, Vernon's Texas Civil Statutes);
7-1 (7) <(6)> a certificate issued by the Department of
7-2 Public Safety that shows that the vehicle is a vehicle for which a
7-3 bond is on file with the Department as provided by Section 24 of
7-4 the Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
7-5 Vernon's Texas Civil Statutes); or
7-6 (8) <(7)> a copy of a certificate issued by the county
7-7 judge of a county in which the vehicle is registered that shows
7-8 that the owner of the vehicle has on deposit with the county judge
7-9 cash or a cashier's check in at least the amount required by
7-10 Section 1A(b)(6) of the Texas Motor Vehicle Safety-Responsibility
7-11 Act (Article 6701h, Vernon's Texas Civil Statutes).
7-12 (d-1) If the owner of a motor vehicle submits evidence of
7-13 financial responsibility described by Subsection (d)(1), (3), or
7-14 (4) of this section, the county tax collector may not register the
7-15 motor vehicle unless the agent shown on the policy, proof of
7-16 liability insurance form, or insurance binder or a designated
7-17 employee of the agent confirms that the policy or binder is in
7-18 effect. Confirmation may be made by telephone or by a written
7-19 facsimile transmission.
7-20 SECTION 4. Section 140(a), Uniform Act Regulating Traffic on
7-21 Highways (Article 6701d, Vernon's Texas Civil Statutes), is amended
7-22 to read as follows:
7-23 (a) Every motor vehicle, trailer, semitrailer, pole trailer,
7-24 or mobile home, registered in this state and operated on the
7-25 highways of this state, shall have the tires, brake system
7-26 (including power brake unit), lighting equipment, horns and warning
7-27 devices, mirrors, windshield wipers, front seat belts in vehicles
8-1 where seat belt anchorages were part of the manufacturer's original
8-2 equipment on the vehicle, steering system (including power
8-3 steering), wheel assembly, safety guards or flaps if required by
8-4 Section 139A of this Act, tax decal if required by Section 141(d)
8-5 of this Act, sunscreening devices unless the vehicle is exempt from
8-6 sunscreen device restrictions under Section 134C(k) or (l) of this
8-7 Act, exhaust system, and exhaust emission system inspected at
8-8 state-appointed inspection stations or by State Inspectors as
8-9 hereinafter provided. Provisions relating to the inspection of
8-10 trailers, semitrailers, pole trailers, or mobile homes shall not
8-11 apply when the registered or gross weight of such vehicles and the
8-12 load carried thereon is four thousand five hundred (4,500) pounds
8-13 or less. Only the mechanism and equipment designated in this
8-14 section may be inspected, and the owner shall not be required to
8-15 have any other equipment or part of his motor vehicle inspected as
8-16 a prerequisite for the issuance of an inspection certificate. At
8-17 the time of inspection the owner or operator shall furnish evidence
8-18 of financial responsibility. The evidence of financial
8-19 responsibility may be shown in the manner specified under Section
8-20 1B(a) <1B(b)>, Texas Motor Vehicle Safety-Responsibility Act
8-21 (Article 6701h, Vernon's Texas Civil Statutes). An inspection
8-22 certificate may not be issued for a vehicle for which the owner or
8-23 operator fails to furnish the required evidence of financial
8-24 responsibility. If the owner or operator of the motor vehicle
8-25 submits the evidence of financial responsibility described by
8-26 Section 1B(a)(1), (2), or (3), Texas Motor Vehicle
8-27 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
9-1 Statutes), an inspection certificate may not be issued unless the
9-2 agent shown on the policy, proof of liability insurance form, or
9-3 insurance binder or a designated employee of the agent confirms
9-4 that the policy or binder is in effect. Confirmation may be made
9-5 by telephone or by a written facsimile transmission. An inspection
9-6 facility or station is not liable to any person, including a third
9-7 party, for issuing an inspection certificate in reliance on
9-8 evidence of financial responsibility submitted to the facility or
9-9 station. If the inspection facility or station is the seller of a
9-10 motor vehicle, the inspection facility or station may rely on an
9-11 oral insurance binder.
9-12 SECTION 5. Section 6(c), Chapter 173, Acts of the 47th
9-13 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
9-14 Civil Statutes), is amended to read as follows:
9-15 (c) An application for an original or renewal driver's
9-16 license must be accompanied by evidence of financial responsibility
9-17 or a statement that the applicant does not own a motor vehicle for
9-18 which maintenance of financial responsibility is required under the
9-19 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
9-20 Vernon's Texas Civil Statutes). Evidence of financial
9-21 responsibility presented under this subsection must be in at least
9-22 the minimum amounts required by Subdivision 10, Section 1, Texas
9-23 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
9-24 Texas Civil Statutes), must cover each motor vehicle that the
9-25 applicant owns and for which the applicant is required to maintain
9-26 financial responsibility, and may be shown in the manner specified
9-27 under Section 1B(a) <1B(b)> of that Act. If the applicant submits
10-1 the evidence of financial responsibility described by Section
10-2 1B(a)(1), (2), or (3), Texas Motor Vehicle Safety-Responsibility
10-3 Act (Article 6701h, Vernon's Texas Civil Statutes), a driver's
10-4 license may not be issued or renewed unless the agent shown on the
10-5 policy, proof of liability insurance form, or insurance binder or a
10-6 designated employee of the agent confirms that the policy or binder
10-7 is in effect. The confirmation may be made by telephone or by a
10-8 written facsimile transmission. A statement that the applicant
10-9 does not own an applicable motor vehicle must be sworn to and
10-10 signed by the applicant.
10-11 SECTION 6. Subchapter A, Chapter 21, Insurance Code, is
10-12 amended by adding Article 21.15-7 to read as follows:
10-13 Art. 21.15-7. SPECIAL COMMISSION ON MOTOR VEHICLE INSURANCE.
10-14 (a) In this article:
10-15 (1) "Agent" means any person who is authorized to
10-16 write or bind motor vehicle insurance coverage under this
10-17 subchapter.
10-18 (2) "Insurer" means any insurance company,
10-19 interinsurance exchange, mutual, reciprocal, association, Lloyd's
10-20 plan, or other insurer writing motor vehicle insurance in this
10-21 state.
10-22 (b) An insurer shall pay an agent a special commission of
10-23 one percent of the premium paid on motor vehicle liability
10-24 insurance written, bound, or renewed through the agent.
10-25 (c) The special commission required by this article is in
10-26 addition to any other commission paid to the agent and intended to
10-27 compensate the agent for the agent's responsibilities under Chapter
11-1 88, General Laws, Acts of the 41st Legislature, 2nd Called Session,
11-2 1929 (Article 6675a-1, Vernon's Texas Civil Statutes), Chapter 173,
11-3 Acts of the 47th Legislature, Regular Session, 1941 (Article 6687b,
11-4 Vernon's Texas Civil Statutes), the Uniform Act Regulating Traffic
11-5 on Highways (Article 6701d, Vernon's Texas Civil Statutes), and the
11-6 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
11-7 Vernon's Texas Civil Statutes).
11-8 (d) The board may adopt rules to implement this article.
11-9 SECTION 7. (a) This Act takes effect September 1, 1993.
11-10 (b) The changes made by Sections 1, 2, 3, 4, and 5 of this
11-11 Act apply only to evidence of financial responsibility that relates
11-12 to insurance coverage that is delivered, issued for delivery, or
11-13 renewed on or after January 1, 1994.
11-14 (c) Section 6 of this Act requires the payment of a special
11-15 commission only for the writing, binding, or renewal of insurance
11-16 coverage that is delivered, issued for delivery, or renewed on or
11-17 after January 1, 1994.
11-18 SECTION 8. The importance of this legislation and the
11-19 crowded condition of the calendars in both houses create an
11-20 emergency and an imperative public necessity that the
11-21 constitutional rule requiring bills to be read on three several
11-22 days in each house be suspended, and this rule is hereby suspended.