73R8521 DLF-F
By Counts, Clemons, et al. H.B. No. 1065
Substitute the following for H.B. No. 1065:
By Shields C.S.H.B. No. 1065
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to motor vehicle insurance coverage and liability for
1-3 motor vehicle accidents; imposing civil and criminal penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Insurance Code is amended by adding Chapter
1-6 26 to read as follows:
1-7 CHAPTER 26. MOTOR VEHICLE ACCIDENT COMPENSATION
1-8 AND COST CONTAINMENT
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Art. 26.01. DEFINITIONS. In this chapter:
1-11 (1) "Accidental injury" means a bodily injury,
1-12 sickness, or disease that is not intentionally caused by the
1-13 injured person and that arises out of the use of a motor vehicle.
1-14 The term includes a death resulting from the injury, sickness, or
1-15 disease.
1-16 (2) "Dependent" means a resident relative of a person
1-17 who receives financial or services support from that person.
1-18 (3) "Economic loss" means medical expenses, loss of
1-19 income from work, and replacement services loss incurred by an
1-20 injured person as the result of an accidental injury to the injured
1-21 person.
1-22 (4) "Injured person" means a person who sustains an
1-23 accidental injury.
1-24 (5) "Medical expenses" means reasonable expenses that
2-1 are incurred by an injured person, a parent or guardian on behalf
2-2 of an injured person who is a minor or who has a mental disability,
2-3 or a spouse on behalf of an injured person who is deceased, and
2-4 that are incurred for reasonable and necessary medical, surgical, X
2-5 ray, dental, ambulance, hospital, medical rehabilitation, and
2-6 professional nursing services expenses. The term includes expenses
2-7 for eyeglasses, hearing aids, and prosthetic devices.
2-8 (6) "Medical rehabilitation services" means services
2-9 that are reasonably necessary and are designed to:
2-10 (A) reduce the disability and dependence of an
2-11 injured person; and
2-12 (B) restore the person, to the extent reasonably
2-13 possible, to the person's level of physical functioning before the
2-14 accidental injury.
2-15 (7) "Motor vehicle" has the meaning assigned by
2-16 Section 1, Texas Motor Vehicle Safety-Responsibility Act (Article
2-17 6701h, Vernon's Texas Civil Statutes).
2-18 (8) "Motor vehicle insurance" means insurance that
2-19 provides coverage for accidental injury resulting from the use of a
2-20 motor vehicle, including a policy issued under an assigned risk
2-21 plan established under Section 35, Texas Motor Vehicle
2-22 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
2-23 Statutes).
2-24 (9) "Motor vehicle insurer" means any insurer writing
2-25 motor vehicle insurance in this state, including:
2-26 (A) an insurance company;
2-27 (B) an interinsurance exchange;
3-1 (C) a mutual insurance company, including a
3-2 county mutual insurance company;
3-3 (D) a reciprocal insurance company or
3-4 interinsurance exchange;
3-5 (E) a Lloyd's plan insurer; and
3-6 (F) a person qualified as a self-insurer under
3-7 Section 34, Texas Motor Vehicle Safety-Responsibility Act (Article
3-8 6701h, Vernon's Texas Civil Statutes).
3-9 (10) "Noneconomic loss" means a detriment other than
3-10 economic loss for which damages would be recoverable under the law
3-11 of this state in the absence of this chapter, including pain,
3-12 suffering, inconvenience, and mental anguish.
3-13 (11) "Occupying" means, in the context of occupying a
3-14 motor vehicle:
3-15 (A) to be in or on a motor vehicle; or
3-16 (B) to be engaged in the immediate act of
3-17 entering into or alighting from the motor vehicle.
3-18 (12) "Owner" means:
3-19 (A) the person in whose name a motor vehicle has
3-20 been registered; or
3-21 (B) if no registration is in effect at the time
3-22 of an accident involving the motor vehicle:
3-23 (i) the person holding legal title to the
3-24 motor vehicle; or
3-25 (ii) if the motor vehicle is the subject
3-26 of a security agreement or lease with the option to purchase, a
3-27 debtor or lessee who has the right to possess the vehicle.
4-1 (13) "Person" includes an individual, corporation,
4-2 organization, or any other legal entity.
4-3 (14) "Personal compensation coverage" means coverage
4-4 that provides first party benefits in accordance with Article
4-5 26.31(a) of this code.
4-6 (15) "Personal compensation insured" means a person
4-7 entitled to personal compensation benefits under Article 26.33 of
4-8 this code.
4-9 (16) "Replacement services loss" means expenses
4-10 reasonably incurred in obtaining ordinary and necessary services
4-11 from a person who is not a member of the injured person's
4-12 household.
4-13 (17) "Resident relative" means a person who is related
4-14 by blood, marriage, or adoption to an insured or an injured person
4-15 and who:
4-16 (A) resides in the same household as the insured
4-17 or injured person; or
4-18 (B) temporarily resides in a place other than
4-19 the household of the insured or injured person, but who usually
4-20 makes a home in the same family unit.
4-21 (18) "Uninsured motor vehicle" means a motor vehicle
4-22 that is:
4-23 (A) not covered by motor vehicle insurance that
4-24 meets the requirements of the Texas Motor Vehicle
4-25 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
4-26 Statutes); or
4-27 (B) owned by a person whose identity is unknown
5-1 and unascertainable.
5-2 Art. 26.02. RULES. The board may adopt rules for the
5-3 administration of this chapter.
5-4 Art. 26.03. CONSTRUCTION OF NONCONFORMING POLICIES. In any
5-5 controversy regarding the terms of a motor vehicle insurance
5-6 policy, a motor vehicle insurance policy that is delivered, issued
5-7 for delivery, or renewed in this state shall be construed to comply
5-8 with this chapter.
5-9 Art. 26.04. ARBITRATION. (a) A dispute between a motor
5-10 vehicle insurer and a personal compensation insured or a dependent
5-11 of the insured shall be submitted to arbitration on the request of
5-12 either party in accordance with this article.
5-13 (b) Each party shall select an arbitrator. The two
5-14 arbitrators selected by the parties shall select a third
5-15 arbitrator.
5-16 (c) A written decision signed by any two arbitrators is
5-17 binding on each party to the dispute.
5-18 Art. 26.05. USE OF MOTOR VEHICLE. (a) For the purposes of
5-19 this chapter, a person is using a motor vehicle if the person is
5-20 operating or occupying the vehicle.
5-21 (b) For the purposes of this chapter, a person is not using
5-22 a motor vehicle if the person is not occupying the vehicle and the
5-23 person is:
5-24 (1) manufacturing the vehicle;
5-25 (2) selling the vehicle;
5-26 (3) loading or unloading the vehicle; or
5-27 (4) maintaining the vehicle, including repairing,
6-1 servicing, or washing the vehicle.
6-2 Art. 26.06. UNITED STATES AS OWNER. This chapter does not
6-3 apply to the United States as an owner of a motor vehicle except
6-4 with respect to motor vehicles for which the United States has
6-5 elected to provide insurance.
6-6 Art. 26.07. DISCOVERY. In any dispute between a claimant
6-7 and an insurer regarding discovery of facts about an injured
6-8 person, a court of record may enter an order for discovery as
6-9 justice requires, unless the dispute is referred to arbitration
6-10 under Article 26.04 of this code.
6-11 Art. 26.08. DECLARATORY JUDGMENT. (a) The validity of this
6-12 chapter or any part of this chapter may be determined in an action
6-13 for declaratory judgment in a district court in Travis County under
6-14 Chapter 37, Civil Practice and Remedies Code.
6-15 (b) An appeal of a declaratory judgment, including an appeal
6-16 to the supreme court, holding this chapter or a portion of this
6-17 chapter valid or invalid under the state or federal constitution is
6-18 an accelerated appeal governed by Rule 42, Texas Rules of Appellate
6-19 Procedure.
6-20 Art. 26.09. STATUTORY REFERENCES. A reference in this
6-21 chapter to a statutory provision applies to all reenactments,
6-22 revisions, or amendments of that statutory provision.
6-23 SUBCHAPTER B. PERSONAL COMPENSATION COVERAGE
6-24 Art. 26.21. PERSONAL COMPENSATION COVERAGE REQUIRED. A
6-25 motor vehicle insurance policy delivered, issued for delivery, or
6-26 renewed in this state must provide coverage that complies with
6-27 Article 26.31 of this code.
7-1 Art. 26.22. BENEFITS PAYABLE WITHOUT REGARD TO FAULT. A
7-2 benefit under personal compensation coverage is payable without
7-3 regard to the fault of the personal compensation insured in the
7-4 accident that caused the injury.
7-5 Art. 26.23. OUT-OF-STATE CLAIMS AND COVERAGE. (a) A motor
7-6 vehicle insurance policy must provide personal compensation
7-7 coverage for the accidental injury of a personal compensation
7-8 insured that is sustained within the United States, the territories
7-9 or possessions of the United States, or Canada.
7-10 (b) If a motor vehicle covered under a motor vehicle
7-11 insurance policy is in an accident in another jurisdiction, the
7-12 policy must provide at least the minimum amount of insurance
7-13 coverage required by the laws of that jurisdiction.
7-14 (c) A motor vehicle insurer transacting business in this
7-15 state must file with the commissioner, as a condition of its
7-16 continued transaction of business in this state, a form approved by
7-17 the commissioner stating that any contract of primary motor vehicle
7-18 insurance, wherever issued, covering the use of a motor vehicle
7-19 while the motor vehicle is in this state, provides personal
7-20 compensation and minimum bodily injury and property damage
7-21 liability insurance at levels required by the law of this state. A
7-22 nonadmitted insurer may also file this form.
7-23 SUBCHAPTER C. COVERAGE
7-24 Art. 26.31. PERSONAL COMPENSATION BENEFITS, DEATH BENEFIT,
7-25 AND LIABILITY COVERAGE. (a) A motor vehicle insurance policy must
7-26 provide at least $20,000 in first party personal compensation
7-27 benefits for each covered person in any one accident. Benefits
8-1 under this subsection include the following benefits for loss
8-2 resulting from accidental injury to a personal compensation
8-3 insured:
8-4 (1) medical expenses, subject to a deductible of $250
8-5 per person for claims of the named insured and of a resident
8-6 relative of the named insured;
8-7 (2) loss of income from work as computed under Article
8-8 26.40 of this code, not to exceed $200 per week; and
8-9 (3) replacement services loss, not to exceed $100 per
8-10 week.
8-11 (b) A motor vehicle policy must provide a death benefit in
8-12 the amount of $5,000 for the death of a person entitled to first
8-13 party benefits under this subchapter. The death benefit required
8-14 by this subsection is in addition to first party benefits payable
8-15 as a result of the use of the motor vehicle and is payable to the
8-16 estate of the deceased.
8-17 (c) The commissioner also shall promulgate motor vehicle
8-18 insurance policies that meet the requirements of Subsection (a) and
8-19 (b) of this article but that are subject to a deductible as
8-20 described by Subsection (a)(1) of this article in the amount of:
8-21 (1) $0;
8-22 (2) $100; or
8-23 (3) $1,000.
8-24 (d) Each motor vehicle insurer shall offer each of the
8-25 policies described by Subsection (c) of this article.
8-26 Art. 26.32. OTHER COVERAGE. A motor vehicle insurer may
8-27 make available personal compensation insurance that provides
9-1 benefits in addition to and different from the benefits described
9-2 by Article 26.31(a) of this code.
9-3 Art. 26.33. COVERED PERSONS. Personal compensation coverage
9-4 provides benefits for:
9-5 (1) any person identified by name as an insured under
9-6 the personal compensation insurance policy;
9-7 (2) any resident relative of the first person
9-8 identified by name as an insured under the policy; and
9-9 (3) any person who sustains an accidental injury in
9-10 this state:
9-11 (A) while occupying a motor vehicle insured by
9-12 the policy; or
9-13 (B) through being struck by a motor vehicle
9-14 insured by the policy.
9-15 Art. 26.34. PERSONS EXCLUDED FROM COVERAGE. (a) Except as
9-16 provided by Subsection (b) of this article, a motor vehicle
9-17 insurance policy may not provide personal compensation coverage for
9-18 a person who is injured while:
9-19 (1) committing a felony;
9-20 (2) voluntarily using a motor vehicle that the injured
9-21 person knows is stolen;
9-22 (3) driving while intoxicated;
9-23 (4) using a motor vehicle owned by, or furnished or
9-24 available for the regular use of, the injured person or the injured
9-25 person's resident relative, if the motor vehicle is not described
9-26 in the policy under which a claim is made and is not a newly
9-27 acquired or replacement motor vehicle covered under the terms of
10-1 the policy;
10-2 (5) using a motor vehicle that is not covered by motor
10-3 vehicle insurance that meets the requirements of the Texas Motor
10-4 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
10-5 Civil Statutes), if the injured person is not a named insured or a
10-6 resident relative of a named insured; or
10-7 (6) guilty of intentional misconduct.
10-8 (b) A motor vehicle insurance policy may include personal
10-9 compensation coverage for a person mentioned in this article only
10-10 if language clearly manifesting an intent to provide that coverage
10-11 is included in the policy.
10-12 (c) In this article:
10-13 (1) "Intentional misconduct" means an act or omission
10-14 by an injured person that causes or substantially contributes to
10-15 harm and that the actor commits for the purpose of causing harm or
10-16 knowing that harm is substantially certain to follow. An act or
10-17 omission is not intentional misconduct:
10-18 (A) solely because the act was intentional or
10-19 committed with the knowledge that the act creates a grave risk of
10-20 causing harm; or
10-21 (B) if committed for the purpose of averting
10-22 bodily harm to any person.
10-23 (2) "Intoxicated" has the meaning assigned by Article
10-24 6701l-1, Revised Statutes.
10-25 (d) For purposes of this article, if a peace officer
10-26 requests that an injured person submit to a test of blood, breath,
10-27 or urine in connection with the accident, the person shall be
11-1 considered to have been driving while intoxicated at the time of
11-2 the accident if the person:
11-3 (1) refuses to submit to the test;
11-4 (2) does not submit to the test and does not expressly
11-5 agree to submit to the test; or
11-6 (3) refuses to complete the test.
11-7 Art. 26.35. MEDICAL EXPENSE BENEFIT PAYMENT LIMITS. (a) A
11-8 person may not require, request, or accept a payment for a
11-9 treatment, accommodation, product, or service for an injured person
11-10 who is a personal compensation insured if the amount of the payment
11-11 exceeds the amount authorized by this article.
11-12 (b) Payment for a treatment, accommodation, product, or
11-13 service may not exceed the lesser of:
11-14 (1) the provider's usual and customary charge; or
11-15 (2) 110 percent of the fee schedule, prevailing
11-16 charge, recommended fee, inflation index charge, or
11-17 diagnostic-related groups payment that applies to the particular
11-18 specialty service and that was determined to be applicable in this
11-19 state under the Medicare program created under Part A and Part B,
11-20 Title XVII, Social Security Act (42 U.S.C. Section 1395 et seq.)
11-21 for comparable treatments, accommodations, products, or services at
11-22 the time and place the treatments, accommodations, products, or
11-23 services were provided.
11-24 (c) If a fee schedule, prevailing charge, recommended fee,
11-25 inflation index charge, or diagnostic-related groups payment has
11-26 not been computed under the Medicare program for a treatment,
11-27 accommodation, product, or service, the amount of the payment may
12-1 not exceed 80 percent of the provider's usual and customary charge
12-2 for that treatment, accommodation, product, or service.
12-3 (d) This article does not require payment of pass through
12-4 costs.
12-5 Art. 26.36. PAYMENT FOR PRIVATE ROOM EXCLUDED. The medical
12-6 expense benefit under personal compensation coverage does not
12-7 include any portion of a charge for a room in a hospital, clinic,
12-8 convalescent or nursing home, extended care facility, or any
12-9 similar facility in excess of the reasonable and customary charge
12-10 for semi-private accommodations, unless a private accommodation is
12-11 determined to be medically required.
12-12 Art. 26.37. PAYMENT FOR EXPERIMENTAL TREATMENT, SERVICE,
12-13 PRODUCT, OR PROCEDURE EXCLUDED. The medical expense benefit under
12-14 personal compensation coverage does not include payment for a
12-15 treatment, service, product, or procedure that is:
12-16 (1) experimental in nature;
12-17 (2) for research or not primarily designed to serve a
12-18 medical purpose; or
12-19 (3) not commonly and customarily recognized throughout
12-20 the medical profession and within the United States as appropriate
12-21 for treatment of the injury.
12-22 Art. 26.38. MEDICAL EXPENSE BENEFIT; LIMITATION. The
12-23 medical expense benefit under personal compensation coverage is not
12-24 payable for medical expenses that accrue after the second
12-25 anniversary of the date of the accident.
12-26 Art. 26.39. REVIEW OF MEDICAL EXPENSES. A motor vehicle
12-27 insurer may review medical expenses prior to, during, and after the
13-1 course of treatment of an injured person to ensure that the
13-2 expenses are reasonable and necessary.
13-3 Art. 26.40. COMPUTATION OF LOSS OF INCOME BENEFIT;
13-4 LIMITATION. (a) The benefit for loss of income from work under
13-5 personal compensation coverage is equal to 80 percent of the amount
13-6 of income the injured person would have earned through work during
13-7 the period of disability, less:
13-8 (1) income from substitute work actually performed by
13-9 the injured person; or
13-10 (2) income the injured person would have earned in
13-11 available appropriate substitute work which the injured person was
13-12 capable of performing but unreasonably failed to undertake.
13-13 (b) The loss of income from work benefit does not include
13-14 loss that accrues after the death of the injured person.
13-15 (c) The loss of income from work benefit is not payable
13-16 after the second anniversary of the date of the accident.
13-17 Art. 26.41. REPLACEMENT SERVICES BENEFIT; LIMITATION. (a)
13-18 An injured person is not entitled to the benefit for replacement
13-19 services under compensation coverage during a period in which the
13-20 person is receiving the benefit for loss of income from work.
13-21 (b) The replacement services benefit does not include loss
13-22 that accrues after the death of the injured person.
13-23 (c) The replacement services benefit is not payable for loss
13-24 that accrues after the second anniversary of the date of the
13-25 accident.
13-26 Art. 26.42. DEATH BENEFIT; LIMITATION. A death benefit
13-27 under personal compensation coverage may be paid only if the death
14-1 of an injured person occurs before the first anniversary of an
14-2 accidental injury that directly and proximately caused the death.
14-3 SUBCHAPTER D. PAYMENT OF PERSONAL COMPENSATION BENEFITS
14-4 Art. 26.51. PROMPT PAYMENT OF CLAIMS. Article 21.55 of this
14-5 code applies to payment of claims under this chapter.
14-6 Art. 26.52. PERSONS TO WHOM PAYMENT IS MADE. A motor
14-7 vehicle insurer shall pay personal compensation benefits, at the
14-8 option of the insurer, to:
14-9 (1) the injured person;
14-10 (2) the parent or guardian of the injured person, if
14-11 the injured person is a minor or is incompetent;
14-12 (3) a dependent, executor, or administrator of an
14-13 injured person who is deceased; or
14-14 (4) the person or organization rendering the services
14-15 for which payment is due.
14-16 Art. 26.53. VERIFICATION OF ENTITLEMENT TO BENEFITS;
14-17 EMPLOYER'S REPORT. (a) On request of an insurer providing
14-18 benefits under this chapter, an employer shall furnish pertinent
14-19 information regarding an employee who has filed a claim for
14-20 personal compensation benefits.
14-21 (b) Information provided under this article shall be
14-22 provided on a form approved by the commissioner.
14-23 Art. 26.54. VERIFICATION OF ENTITLEMENT TO BENEFITS; MEDICAL
14-24 REPORT; ACCESS TO MEDICAL DOCUMENTS. (a) On the request of an
14-25 insurer providing benefits under this chapter, a physician,
14-26 hospital, clinic, or other health care provider that, before or
14-27 after an accidental injury for which a claim is made, provides
15-1 products, services, treatments, procedures, or accommodations to
15-2 the injured person in relation to any injury, or in relation to a
15-3 condition that the injured person claims is connected with the
15-4 injury, shall furnish a written report to the insurer in accordance
15-5 with this article.
15-6 (b) A report made under this article must include the
15-7 injured person's medical history, condition, and treatment, and the
15-8 dates and costs of the treatment.
15-9 (c) A report made under this article must be accompanied by
15-10 a statement, executed under penalty of perjury, indicating, to the
15-11 best of the knowledge and belief of the person executing the
15-12 statement, whether the treatment or services rendered for the
15-13 accidental injury were reasonable and necessary for the injury and
15-14 identifying the portion of the expenses for the treatment or
15-15 services that was incurred as a result of the accidental injury.
15-16 (d) A physician, hospital, clinic, or other health care
15-17 provider shall promptly produce and permit the inspection and
15-18 copying of its records regarding the injured person's history,
15-19 condition, and treatment, and the dates and costs of treatment or
15-20 services.
15-21 (e) A person may not bring a cause of action against a
15-22 physician, hospital, clinic, or other health care provider for
15-23 complying with the provisions of this article. Section 5.08,
15-24 Medical Practice Act (Article 4495b, Vernon's Texas Civil
15-25 Statutes), does not apply to information provided under this
15-26 article.
15-27 (f) An insurer requesting a report or record under this
16-1 article shall pay all reasonable costs connected with providing the
16-2 report or record.
16-3 (g) This article does not authorize the disclosure of
16-4 information that is confidential under federal law.
16-5 SUBCHAPTER E. COORDINATION OF COVERAGE AND BENEFITS
16-6 Art. 26.61. PRIORITY FOR PAYMENT OF BENEFITS. (a) A person
16-7 who is entitled to personal compensation benefits is entitled to at
16-8 least the personal compensation coverage under a policy in which
16-9 the person is a named insured or the resident relative of a named
16-10 insured. The motor vehicle insurer shall pay personal compensation
16-11 benefits for the claims of the named insured or a resident relative
16-12 of the named insured before paying other claims arising from an
16-13 accident.
16-14 (b) If the limits of the personal compensation benefits for
16-15 the accident are not exhausted after payment of claims under
16-16 Subsection (a) of this article, the insurer shall pay personal
16-17 compensation benefits for the claims of other personal compensation
16-18 insureds.
16-19 (c) If more than one motor vehicle insurer is obligated to
16-20 pay personal compensation benefits, the insurer against whom the
16-21 claim is first made shall pay the claim. That insurer may recover
16-22 a pro rata contribution for the payment and processing of the claim
16-23 from any other motor vehicle insurer obligated to pay the benefits.
16-24 In recovering a contribution under this subsection, the insurer has
16-25 the same priority as the injured person would have had under this
16-26 article.
16-27 Art. 26.62. PARKED VEHICLES; EXCLUSION. For purposes of
17-1 determining whether a motor vehicle insurance policy provides
17-2 coverage for a personal compensation insured other than the named
17-3 insured or a resident relative of a named insured for a particular
17-4 accident, a motor vehicle described by the policy is not involved
17-5 in the accident if the vehicle is parked and unoccupied during the
17-6 accident, unless the manner in which the vehicle is parked causes
17-7 an unreasonable risk of injury.
17-8 Art. 26.63. MULTIPLE COVERAGES. (a) The policy limit for a
17-9 coverage or benefit under a personal compensation insurance policy
17-10 may not be added to, combined with, or otherwise stacked on the
17-11 policy limit for any other coverage or benefit provided under that
17-12 policy or another policy to determine the total limit of coverage
17-13 available to an injured person for an accident. This subsection
17-14 applies notwithstanding the number of:
17-15 (1) motor vehicles involved in the accident;
17-16 (2) personal compensation insureds;
17-17 (3) claims made for the accident;
17-18 (4) motor vehicles or premiums shown on the policies;
17-19 or
17-20 (5) premiums paid.
17-21 (b) A policy may provide that if two or more policies apply
17-22 to the same accident, the highest policy limit for a coverage or
17-23 benefit applicable to the accident is the policy limit for that
17-24 coverage or benefit in the policy that provides the highest limit
17-25 for that coverage or benefit.
17-26 Art. 26.64. COLLATERAL SOURCES OF BENEFITS. (a) A motor
17-27 vehicle insurer shall pay personal compensation benefits to a
18-1 personal compensation insured, notwithstanding coverage other than
18-2 personal compensation coverage that provides benefits for the same
18-3 injury, except as provided by Subsection (b) of this article.
18-4 (b) The amount of personal compensation benefits is reduced
18-5 by the amount of a benefit paid under the Texas Workers'
18-6 Compensation Act (Article 8308-1.01 et seq., Vernon's Texas Civil
18-7 Statutes) or under Chapter 502, Acts of the 45th Legislature,
18-8 Regular Session, 1937 (Article 6674s, Vernon's Texas Civil
18-9 Statutes), Chapter 229, Acts of the 50th Legislature, Regular
18-10 Session, 1947 (Article 8309b, Vernon's Texas Civil Statutes), or
18-11 Chapter 310, Acts of the 52nd Legislature, Regular Session, 1951
18-12 (Article 8309d, Vernon's Texas Civil Statutes).
18-13 (c) Except as provided by Subsection (b) of this article,
18-14 coverage other than personal compensation coverage is excess
18-15 coverage for any accidental injury covered by a personal
18-16 compensation insurance policy.
18-17 SUBCHAPTER F. HEALTH CARE COST CONTAINMENT
18-18 Art. 26.71. DEFINITIONS. In this subchapter:
18-19 (1) "Division" means the division of medical review in
18-20 the department.
18-21 (2) "Health care" means any service or product the
18-22 cost of which is a medical expense.
18-23 (3) "Health care facility" means any facility
18-24 providing health care, including a hospital, emergency clinic, or
18-25 outpatient clinic.
18-26 (4) "Health care practitioner" means a licensed
18-27 individual who provides health care or a nonlicensed individual who
19-1 provides health care under the direction or supervision of a
19-2 doctor.
19-3 (5) "Health care provider" means a health care
19-4 facility or health care practitioner.
19-5 (6) "Referral" means a referral of an injured person
19-6 by a health care practitioner for health care. The term includes:
19-7 (A) directing an injured person to another
19-8 health care provider; or
19-9 (B) establishing a plan of care for an injured
19-10 person that includes the provision of health care by another health
19-11 care provider.
19-12 Art. 26.72. POWERS AND DUTIES OF COMMISSIONER. (a) By
19-13 rule, the commissioner shall:
19-14 (1) adopt fee guidelines relating to payment of
19-15 medical expenses under a motor vehicle insurance policy;
19-16 (2) adopt treatment guidelines related to the use and
19-17 provision of reasonable and necessary health care for which a motor
19-18 vehicle insurance policy provides payment or reimbursement;
19-19 (3) authorize the division of medical review to:
19-20 (A) compel the production of documents;
19-21 (B) establish standards of reporting and billing
19-22 governing both form and content;
19-23 (C) review and audit motor vehicle insurers and
19-24 health care providers to ensure compliance with the fee and
19-25 treatment guidelines and require motor vehicle insurers to bear the
19-26 expense of the review and audit procedures;
19-27 (D) charge a motor vehicle insurer a reasonable
20-1 fee for access to or evaluation of health care or medical expenses
20-2 under this subchapter;
20-3 (E) charge a health care provider who exceeds a
20-4 fee or treatment guideline a reasonable fee for review of health
20-5 care or medical expenses under this subchapter; and
20-6 (F) charge a motor vehicle insurer who
20-7 unreasonably disputes charges in accordance with a fee or treatment
20-8 guideline a reasonable fee for review of health care or medical
20-9 expenses under this subchapter.
20-10 (b) The fee and treatment guidelines adopted under
20-11 Subsection (a) of this article:
20-12 (1) must be designed to ensure the quality of health
20-13 care and to achieve effective control of medical expenses, be fair
20-14 and reasonable, and consider the increased promptness and security
20-15 of payment afforded by this subchapter;
20-16 (2) may not provide for payment or reimbursement of
20-17 medical expenses in excess of the fees charged for similar health
20-18 care;
20-19 (3) must be reviewed and revised at least every two
20-20 years to reflect fair and reasonable fees and charges for health
20-21 care; and
20-22 (4) must be amended to reflect changes in reasonable
20-23 and necessary health care or ranges of health care.
20-24 (c) By rule, the commissioner may:
20-25 (1) specify health care that may be reimbursed only if
20-26 performed or prescribed by the doctor primarily responsible for an
20-27 injured person's health care;
21-1 (2) specify health care that requires express
21-2 preauthorization by the motor vehicle insurer and for which, except
21-3 in a medical emergency, the insurer is not liable if
21-4 preauthorization is not sought by the injured person or health care
21-5 provider and either obtained from the insurer or ordered by the
21-6 division;
21-7 (3) specify health care that requires the motor
21-8 vehicle insurer to be given an opportunity to request a second
21-9 opinion from a doctor selected by the insurer and for which, except
21-10 in a medical emergency, the insurer is not liable if the
21-11 opportunity is not provided to the insurer;
21-12 (4) limit an injured person's selection of doctor,
21-13 other than a selection made in accordance with a referral, to not
21-14 more than three doctors in a 12-month period unless prior approval
21-15 is obtained from the motor vehicle insurer;
21-16 (5) limit fees charged or paid for providing expert
21-17 testimony in a dispute arising under this subchapter; and
21-18 (6) adopt other rules as necessary to implement this
21-19 subchapter.
21-20 (d) The commissioner may appoint health care advisory
21-21 committees as necessary.
21-22 (e) The following health care is presumed to be reasonable
21-23 for purposes of this subchapter:
21-24 (1) health care consistent with the fee and treatment
21-25 guidelines adopted under Subsection (a) of this article; and
21-26 (2) health care that is:
21-27 (A) provided subject to prospective, concurrent,
22-1 or retrospective review as required by the treatment guidelines;
22-2 and
22-3 (B) authorized by a motor vehicle insurer.
22-4 Art. 26.73. DIVISION OF MEDICAL REVIEW. (a) The department
22-5 shall establish a division of medical review to ensure compliance
22-6 with the rules and implement this subchapter under the rules
22-7 adopted by the commissioner.
22-8 (b) The division shall:
22-9 (1) monitor health care providers, motor vehicle
22-10 insurers, and injured persons who receive health care to ensure
22-11 compliance with:
22-12 (A) this subchapter, including Article 26.77 of
22-13 this code;
22-14 (B) the fee and treatment guidelines; and
22-15 (C) rules adopted to implement this subchapter;
22-16 (2) order a health care provider to refund charges
22-17 paid to the health care provider in excess of those allowed by the
22-18 fee or treatment guidelines;
22-19 (3) order a motor vehicle insurer to pay a health care
22-20 provider the difference between the amount paid by the insurer and
22-21 the amount due under the fee and treatment guidelines if the amount
22-22 paid is less than the amount due under the fee and treatment
22-23 guidelines, except as provided by an agreement between the health
22-24 care provider and the insurer;
22-25 (4) refer a health care provider or motor vehicle
22-26 insurer alleged to have violated this subchapter to the fraud
22-27 division or to the appropriate licensing agency or division of the
23-1 department;
23-2 (5) take action to maintain the most current
23-3 information available on developments in health care; and
23-4 (6) coordinate its activities with health care
23-5 providers as necessary to perform its duties under this subchapter,
23-6 including providing information to and requesting assistance from
23-7 professional peer review organizations.
23-8 (b-1) The division shall study the effectiveness of
23-9 limitations on referrals and related issues and shall file a report
23-10 with the governor, the lieutenant governor, and the speaker of the
23-11 house of representatives not later than January 1, 1995. The
23-12 division may compel the production of documents necessary to make
23-13 this study. This subsection expires September 1, 1995.
23-14 (c) The division shall develop and implement programs to:
23-15 (1) provide for prospective, concurrent, and
23-16 retrospective review of health care as required by the treatment
23-17 guidelines adopted under Article 26.72(a) of this code;
23-18 (2) resolve disputes regarding health care;
23-19 (3) systematically monitor:
23-20 (A) the implementation of the fee and treatment
23-21 guidelines adopted under Article 26.72(a) of this code;
23-22 (B) the necessity of health care;
23-23 (C) medical expenses; and
23-24 (D) prospective, concurrent, or retrospective
23-25 review; and
23-26 (4) detect practices and patterns by and increase the
23-27 intensity of review of:
24-1 (A) a motor vehicle insurer who unreasonably
24-2 denies authorization of payment for health care requested or
24-3 performed;
24-4 (B) a health care provider who charges fees or
24-5 performs health care inconsistent with the fee or treatment
24-6 guidelines adopted under Article 26.72(a) of this code; or
24-7 (C) an injured person who obtains health care
24-8 inconsistent with the treatment guidelines adopted under Article
24-9 26.72(a) of this code.
24-10 (d) The division may contract with:
24-11 (1) other public or private entities to perform any of
24-12 the duties or functions of the division;
24-13 (2) health care providers for independent medical
24-14 examinations, health care reviews, establishment of fee or
24-15 treatment guidelines, or other health care consultant services; and
24-16 (3) a health care provider professional organization
24-17 or other entity to develop, maintain, or review fee or treatment
24-18 guidelines adopted under Article 26.72(a) of this code or to review
24-19 compliance with the fee or treatment guidelines.
24-20 Art. 26.74. RESPONSIBILITIES OF MOTOR VEHICLE INSURER. (a)
24-21 A motor vehicle insurer shall make appropriate payment of charges
24-22 for health care as required by this subchapter.
24-23 (b) A motor vehicle insurer shall provide to the division on
24-24 request any information in its possession, custody, or control
24-25 relating to health care, health care fees, and health care charges,
24-26 as may reasonably relate to the division's duties under this
24-27 subchapter. A request from the division shall specify the
25-1 information needed.
25-2 (c) All information provided under Subsection (b) of this
25-3 article that is confidential by law shall be kept confidential by
25-4 the division.
25-5 (d) A motor vehicle insurer who fails or refuses to comply
25-6 with a request or who violates a rule adopted to implement
25-7 Subsection (b) of this article is subject to an administrative
25-8 penalty assessed under Article 26.81 of this code. The penalty may
25-9 not exceed $1,000. Each day of noncompliance is a separate
25-10 violation.
25-11 (e) A motor vehicle insurer may not require an injured
25-12 person to use a designated pharmaceutical service except through a
25-13 health maintenance organization subject to the Texas Health
25-14 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
25-15 Code) or as provided by this subsection. The insurer may use a
25-16 preferred provider arrangement with a pharmaceutical service. The
25-17 insurer may require an injured person to use a designated
25-18 pharmaceutical service if:
25-19 (1) the prescription drug is prescribed for a chronic
25-20 or long-term condition;
25-21 (2) the designated pharmaceutical service is based in
25-22 this state; and
25-23 (3) the designated pharmaceutical service guarantees
25-24 delivery of the prescription drug to the injured person not later
25-25 than the seventh day after receiving a prescription.
25-26 Art. 26.75. RESPONSIBILITIES OF HEALTH CARE PROVIDERS. (a)
25-27 A health care provider must submit the bill to a motor vehicle
26-1 insurer not later than the 90th day after the date the service is
26-2 provided.
26-3 (b) A health care provider may submit a new bill for the
26-4 same services to the motor vehicle insurer only if:
26-5 (1) the codes and charges on the new bill are
26-6 identical to those on the original bill;
26-7 (2) the new bill does not include charges for new
26-8 services; and
26-9 (3) the new bill is clearly marked as a new bill as
26-10 provided by rules of the commissioner.
26-11 (c) A health care provider may bill the injured person only
26-12 for a deductible required by a motor vehicle insurance policy.
26-13 (d) A health care provider may not:
26-14 (1) waive, reduce, or knowingly fail to attempt to
26-15 collect a deductible required by a motor vehicle insurance policy;
26-16 or
26-17 (2) offer to waive, reduce, or fail to collect a
26-18 deductible required by a motor vehicle insurance policy.
26-19 (e) In addition to other penalties provided by this
26-20 subchapter, a health care provider who fails to comply with this
26-21 article is not entitled to reimbursement for services provided from
26-22 any person.
26-23 Art. 26.76. DATA BASE. (a) The division shall maintain a
26-24 statewide data base of medical expenses and utilization that may be
26-25 used by the commissioner and division in adopting and administering
26-26 the fee and treatment guidelines and other rules of the
26-27 commissioner.
27-1 (b) The division shall ensure that the data base:
27-2 (1) contains information necessary to detect practices
27-3 and patterns in medical expenses and utilization;
27-4 (2) contains information necessary to detect practices
27-5 and patterns of referral, including referrals prohibited by Article
27-6 26.78 of this code; and
27-7 (3) may be used in a meaningful way to allow the
27-8 division to control medical expenses as provided by this
27-9 subchapter.
27-10 (c) The data base shall be made available for public access
27-11 for a reasonable fee established by the commissioner, provided that
27-12 the identity of any injured person may not be released.
27-13 (d) The department may accept gifts, grants, money, and
27-14 contributions from any public or private source to perform its
27-15 duties under this article.
27-16 Art. 26.77. PROMPT PAYMENT. (a) A fee or charge consistent
27-17 with the fee and treatment guidelines adopted under Article
27-18 26.72(a) of this code earns interest as provided by this article
27-19 from the 60th day after the date the health care provider mails,
27-20 delivers, or transmits the bill to the motor vehicle insurer to the
27-21 date the bill is paid.
27-22 (b) A refund from a health care provider earns interest as
27-23 provided by this article from the 60th day after the date the
27-24 provider receives notice of alleged overpayment from the motor
27-25 vehicle insurer to the date the refund is paid.
27-26 (c) The rate of interest under this section is the interest
27-27 rate determined by the Texas Workers' Compensation Commission under
28-1 Section 1.04, Texas Workers' Compensation Act (Article 8308-1.04,
28-2 Vernon's Texas Civil Statutes), applicable on the date the interest
28-3 is earned.
28-4 Art. 26.78. PROHIBITED REFERRALS. (a) In this section:
28-5 (1) "Immediate family member" means a person's spouse,
28-6 child, child's spouse, grandchild, grandchild's spouse, parent,
28-7 parent-in-law, or sibling.
28-8 (2) "Investment interest" means an equity or debt
28-9 security issued by a person, including shares of stock in a
28-10 corporation, units or other interest in a partnership, bonds,
28-11 debentures, notes, or other equity interest or debt instruments.
28-12 (3) "Investor" means a person who owns a legal or
28-13 beneficial ownership or investment interest, directly or
28-14 indirectly, including ownership through an immediate family member,
28-15 trust, or another entity related to the investor within the meaning
28-16 of 42 C.F.R. Section 413.17.
28-17 (4) "Rural area" means a county with a population
28-18 density not greater than 100 persons in each square mile as defined
28-19 by the United States Bureau of the Census.
28-20 (b) A health care practitioner may not refer an injured
28-21 person to a health care provider in which the health care
28-22 practitioner or an immediate family member of the health care
28-23 practitioner is an investor. To be eligible for payment or
28-24 reimbursement under a motor vehicle insurance policy, a health care
28-25 practitioner must report any investment in a health care provider
28-26 to the division in accordance with rules adopted by the
28-27 commissioner.
29-1 (c) This article does not apply to:
29-2 (1) an investment in registered securities purchased
29-3 on a national exchange and issued by a publicly held corporation
29-4 whose total assets at the end of the corporation's most recent
29-5 fiscal quarter exceeded $50 million if:
29-6 (A) the corporation does not loan funds to or
29-7 guarantee a loan for the investor to make all or part of the
29-8 investment; and
29-9 (B) any dividends or other amounts distributed
29-10 to the investor because of the investment represent only a return
29-11 on investment directly proportional to the investor's capital
29-12 investment; and
29-13 (2) an investment in a health care provider that is
29-14 the sole health care provider offering the specified health care in
29-15 a rural area.
29-16 (d) A health care practitioner is not eligible for
29-17 reimbursement from any person for health care provided in violation
29-18 of this article.
29-19 (e) A health care practitioner may not enter into an
29-20 arrangement with another person in which, in exchange for referrals
29-21 or for other consideration, the other person makes referrals to the
29-22 health care provider that the health care practitioner would be
29-23 prohibited from making directly under this article. A health care
29-24 practitioner who violates this subsection is subject to an
29-25 administrative penalty assessed under Article 26.81 of this code.
29-26 A penalty assessed for a violation of this section may not exceed
29-27 $100,000 for each arrangement or scheme. Each arrangement
30-1 constitutes a separate violation for purposes of penalty
30-2 assessment.
30-3 Art. 26.79. DISPUTE RESOLUTION. (a) Each motor vehicle
30-4 insurer must establish a dispute resolution procedure to be
30-5 followed by an injured person or health care provider in contesting
30-6 a payment or other health care-related decision by the insurer.
30-7 The procedure must be consistent with this subchapter and Article
30-8 21.58A of this code.
30-9 (b) An injured person, health care provider, or motor
30-10 vehicle insurer dissatisfied with the outcome of the dispute
30-11 resolution procedure established under Subsection (a) of this
30-12 article may file a written request for a hearing with the
30-13 department. The department has exclusive authority to determine
30-14 all questions relating to the appeal.
30-15 (c) A decision in a hearing under this article is subject to
30-16 judicial review under Article 1.04 of this code.
30-17 (d) The commissioner shall adopt rules to implement this
30-18 article. The rules may include minimum standards for dispute
30-19 resolution procedures established under Subsection (a) of this
30-20 article.
30-21 Art. 26.80. WRONGFUL ACTS. (a) A health care provider may
30-22 not knowingly or intentionally:
30-23 (1) submit a bill for medical expenses for health care
30-24 that was not furnished;
30-25 (2) administer improper, unreasonable, or medically
30-26 unnecessary health care;
30-27 (3) violate the fee or treatment guidelines adopted
31-1 under Article 26.72(a) of this code;
31-2 (4) fail or refuse to timely file required reports or
31-3 records;
31-4 (5) make an unnecessary referral;
31-5 (6) charge a markup for ancillary health care provided
31-6 by others; or
31-7 (7) violate or fail to comply with this subchapter or
31-8 a rule adopted under this subchapter.
31-9 (b) A motor vehicle insurer may not knowingly or
31-10 intentionally:
31-11 (1) violate the fee or treatment guidelines adopted
31-12 under Article 26.72(a) of this code;
31-13 (2) fail or refuse to timely conduct prospective,
31-14 concurrent, or retrospective review as provided by the treatment
31-15 guidelines; or
31-16 (3) violate or fail to comply with this subchapter or
31-17 a rule adopted under this subchapter.
31-18 (c) A person who violates this article is subject to an
31-19 administrative penalty assessed under Article 21.81 of this code
31-20 not to exceed:
31-21 (1) $500 for the first violation;
31-22 (2) $1,000 for the second violation; or
31-23 (3) $5,000 for the third or subsequent violation.
31-24 (d) A person who violates this article may be subject to
31-25 rules adopted by the commissioner providing for:
31-26 (1) a reduction or denial of fees;
31-27 (2) public or private reprimand by the commissioner;
32-1 (3) suspension from practice before the commissioner
32-2 or board; or
32-3 (4) restriction, suspension, or revocation of the
32-4 right to receive payment or reimbursement under a motor vehicle
32-5 insurance policy.
32-6 (e) The department may assess an administrative penalty not
32-7 to exceed $10,000 under Article 21.81 of this code and may issue a
32-8 cease and desist order under Article 1.10A of this code against a
32-9 person who:
32-10 (1) as a business practice commits or allows the
32-11 commission of repeated violations of this article; or
32-12 (2) violates an order or decision of the commissioner
32-13 issued under this subchapter.
32-14 (f) A health care provider subject to an administrative
32-15 penalty or cease and desist order issued under Subsection (e) of
32-16 this article shall be suspended by the appropriate licensing agency
32-17 for a period of not less than six months.
32-18 (g) A motor vehicle insurer subject to an administrative
32-19 penalty or cease and desist order issued under Subsection (e) of
32-20 this section shall be subject to appropriate sanctions as provided
32-21 by Article 1.10 of this code for a period of not less than six
32-22 months.
32-23 Art. 26.81. INVESTIGATION; PENALTY ASSESSMENT; HEARING;
32-24 APPEAL. (a) The department shall conduct investigations relating
32-25 to alleged violations of this subchapter or rules adopted to
32-26 implement this subchapter.
32-27 (b) Any person may request an investigation by filing
33-1 written allegations with the department.
33-2 (c) The department may refer persons subject to an
33-3 investigation to other appropriate authorities, including licensing
33-4 agencies, district and county attorneys, or the attorney general,
33-5 for further investigation and institution of appropriate
33-6 proceedings.
33-7 (d) If an investigation by the department indicates that a
33-8 violation has occurred, the department may issue to the
33-9 commissioner a report that states the facts on which the
33-10 determination is based and the department's recommendation on the
33-11 imposition of a penalty, including a recommendation on the amount
33-12 of the penalty.
33-13 (e) The amount of the penalty shall be based on:
33-14 (1) the seriousness of the violation, including the
33-15 nature, circumstances, consequences, extent, and gravity of the
33-16 prohibited acts, and the hazard or potential hazard created to the
33-17 health, safety, or economic welfare of the public;
33-18 (2) the economic harm resulting from the violation;
33-19 (3) the history of previous violations;
33-20 (4) the amount necessary to deter future violations;
33-21 (5) efforts to correct the violation; and
33-22 (6) any other matter that justice may require.
33-23 (f) Not later than the 14th day after the date the report is
33-24 issued, the department shall give written notice of the report to
33-25 the person. The notice may be given by certified mail. The notice
33-26 must include a brief summary of the alleged violation and a
33-27 statement of the amount of the recommended penalty and must inform
34-1 the person that the person has a right to a hearing on the
34-2 occurrence of the violation, the amount of the penalty, or both the
34-3 occurrence of the violation and the amount of the penalty.
34-4 (g) Not later than the 20th day after the date the person
34-5 receives the notice, the person in writing may accept the
34-6 determination and recommended penalty of the department or may make
34-7 a written request for a hearing on the occurrence of the violation,
34-8 the amount of the penalty, or both the occurrence of the violation
34-9 and the amount of the penalty.
34-10 (h) If the person accepts the determination and recommended
34-11 penalty of the department, the commissioner by order shall approve
34-12 the determination and impose the recommended penalty.
34-13 (i) If the person requests a hearing or fails to respond to
34-14 the notice in a timely manner, the department shall set a hearing
34-15 and give notice of the hearing to the person. The hearing shall be
34-16 held by an administrative law judge of the State Office of
34-17 Administrative Hearings. The administrative law judge shall make
34-18 findings of fact and conclusions of law and promptly issue to the
34-19 commission a proposal for a decision about the occurrence of the
34-20 violation and the amount of the proposed penalty. Based on the
34-21 findings of fact, conclusions of law, and proposal for a decision,
34-22 the commissioner by order may find that a violation has occurred
34-23 and impose a penalty or may find that no violation occurred.
34-24 (j) The notice of the commissioner's order given to the
34-25 person under the Administrative Procedure and Texas Register Act
34-26 (Article 6252-13a, Vernon's Texas Civil Statutes) must include a
34-27 statement of the right of the person to judicial review of the
35-1 order.
35-2 (k) Not later than the 30th day after the date the
35-3 commissioner's order is final as provided by Section 16(c),
35-4 Administrative Procedure and Texas Register Act (Article 6252-13a,
35-5 Vernon's Texas Civil Statutes), the person shall:
35-6 (1) pay the amount of the penalty;
35-7 (2) pay the amount of the penalty and file a petition
35-8 for judicial review contesting the occurrence of the violation, the
35-9 amount of the penalty, or both the occurrence of the violation and
35-10 the amount of the penalty; or
35-11 (3) without paying the amount of the penalty, file a
35-12 petition for judicial review contesting the occurrence of the
35-13 violation, the amount of the penalty, or both the occurrence of the
35-14 violation and the amount of the penalty.
35-15 (l) Within the 30-day period, a person who acts under
35-16 Subsection (k)(3) of this article may:
35-17 (1) stay enforcement of the penalty by:
35-18 (A) paying the amount of the penalty to the
35-19 court for placement in an escrow account; or
35-20 (B) giving to the court a supersedeas bond that
35-21 is approved by the court for the amount of the penalty and that is
35-22 effective until all judicial review of the commissioner's order is
35-23 final; or
35-24 (2) request the court to stay enforcement of the
35-25 penalty by:
35-26 (A) filing with the court a sworn affidavit of
35-27 the person stating that the person is financially unable to pay the
36-1 amount of the penalty and is financially unable to give the
36-2 supersedeas bond; and
36-3 (B) giving a copy of the affidavit to the
36-4 department by certified mail.
36-5 (m) If the department receives a copy of an affidavit under
36-6 Subsection (l)(2) of this article, the department may file with the
36-7 court, within five days after the date the copy is received, a
36-8 contest to the affidavit. The court shall hold a hearing on the
36-9 facts alleged in the affidavit as soon as practicable and shall
36-10 stay enforcement of the penalty on finding that the alleged facts
36-11 are true. The person who files an affidavit has the burden of
36-12 proving that the person is financially unable to pay the amount of
36-13 the penalty and to give a supersedeas bond.
36-14 (n) If the person does not pay the amount of the penalty and
36-15 the enforcement of the penalty is not stayed, the department may
36-16 refer the matter to the attorney general for collection of the
36-17 amount of the penalty.
36-18 (o) Judicial review of the order of the commissioner:
36-19 (1) is instituted by filing a petition as provided by
36-20 Section 19, Administrative Procedure and Texas Register Act
36-21 (Article 6252-13a, Vernon's Texas Civil Statutes); and
36-22 (2) is under the substantial evidence rule.
36-23 (p) If the court sustains the occurrence of the violation,
36-24 the court may uphold or reduce the amount of the penalty and order
36-25 the person to pay the full or reduced amount of the penalty. If
36-26 the court does not sustain the occurrence of the violation, the
36-27 court shall order that no payment is owed.
37-1 (q) When the judgment of the court becomes final, the court
37-2 shall proceed under this subsection. If the person paid the amount
37-3 of the penalty and if the amount is reduced or is not upheld by the
37-4 court, the court shall order that the appropriate amount plus
37-5 accrued interest be remitted to the person. The rate of the
37-6 interest is the rate charged on loans to depository institutions by
37-7 the New York Federal Reserve Bank, and the interest shall be paid
37-8 for the period beginning on the date the penalty was paid and
37-9 ending on the date the penalty is remitted. If the person gave a
37-10 supersedeas bond and if the amount is not upheld by the court, the
37-11 court shall order the release of the bond. If the person gave a
37-12 supersedeas bond and if the amount of the penalty is reduced, the
37-13 court shall order the release of the bond after the person pays the
37-14 amount.
37-15 (r) A penalty collected under this article shall be remitted
37-16 to the comptroller for deposit in the general revenue fund.
37-17 (s) All proceedings under this section are subject to the
37-18 Administrative Procedure and Texas Register Act (Article 6252-13a,
37-19 Vernon's Texas Civil Statutes).
37-20 Art. 26.82. IMMUNITY FROM LIABILITY. A health care provider
37-21 who performs services for the department is not liable in a civil
37-22 action for any act performed in good faith in the execution of
37-23 duties under this subchapter. Immunity from liability under this
37-24 article does not apply to a person providing health care to an
37-25 injured person.
37-26 SUBCHAPTER G. RIGHTS AND DUTIES OF PERSONAL COMPENSATION
37-27 INSUREDS
38-1 Art. 26.91. ASSIGNMENT OR GARNISHMENT OF PERSONAL
38-2 COMPENSATION BENEFITS. (a) Personal compensation benefits, other
38-3 than those for medical expenses, are exempt from garnishment,
38-4 attachment, execution, and any other process or claim to the same
38-5 extent that wages or earnings are exempt under law.
38-6 (b) An agreement to assign a right to a personal
38-7 compensation benefit, other than a medical benefit, that is payable
38-8 in the future is unenforceable except to the extent that:
38-9 (1) the assignment compensates the assignee for a
38-10 product, service, or accommodation provided or to be provided by
38-11 the assignee; or
38-12 (2) the assignment is of benefits for loss of income
38-13 from work or replacement services and is assigned to pay alimony,
38-14 spousal maintenance, or child support.
38-15 Art. 26.92. CANCELLATION, NONRENEWAL, OR PREMIUM INCREASE
38-16 FOLLOWING CLAIM. (a) A motor vehicle insurer may not cancel,
38-17 refuse to renew, or increase the premium for a personal
38-18 compensation insurance policy because of a claim for personal
38-19 compensation benefits if a personal compensation insured was not at
38-20 fault in the accident from which the claim arose.
38-21 (b) A person may not bring a civil action for equitable
38-22 relief from or civil damages for a violation of this article.
38-23 Art. 26.93. ACTION FOR BENEFITS. Unless arbitration is
38-24 elected under Article 26.04 of this code, a person must bring an
38-25 action against a motor vehicle insurer for unpaid personal
38-26 compensation benefits:
38-27 (1) not later than the second anniversary of the date
39-1 that the accidental injury occurred; or
39-2 (2) if some benefits have been paid, not later than
39-3 the second anniversary of the date of the last payment of benefits.
39-4 Art. 26.94. MENTAL AND PHYSICAL EXAMINATIONS. (a) If the
39-5 mental or physical condition of an injured person is material to a
39-6 claim that has been made or may be made for personal compensation
39-7 benefits, the injured person shall submit to reasonable mental or
39-8 physical examinations by a physician or physicians designated by
39-9 the motor vehicle insurer at a reasonably convenient time and
39-10 location, subject to regulations adopted by the commissioner.
39-11 (b) A personal compensation insurance policy may include a
39-12 provision stating the substance of Subsection (a) of this article.
39-13 Art. 26.95. MEDICAL OR REHABILITATION SERVICES. A motor
39-14 vehicle insurer may suspend payment of future benefits to an
39-15 injured person if:
39-16 (1) the insurer has requested that the person submit
39-17 to medical or rehabilitation services; and
39-18 (2) the person unreasonably refuses to submit to the
39-19 services.
39-20 SUBCHAPTER H. FRAUDULENT CLAIMS
39-21 Art. 26.101. FRAUDULENT CLAIMS. A person may not:
39-22 (1) present or cause to be presented, or conspire to
39-23 present or cause to be presented, a statement in connection with a
39-24 claim for a personal compensation benefit that the person knows
39-25 contains false, incomplete, or misleading information concerning a
39-26 matter that is material to the claim; or
39-27 (2) prepare or make a statement that the person
40-1 intends to be presented to another person in connection with a
40-2 claim for a personal compensation benefit that the person knows
40-3 contains false, incomplete, or misleading information concerning a
40-4 matter that is material to the claim.
40-5 Art. 26.102. CRIMINAL OFFENSE. (a) A person commits an
40-6 offense if the person violates Article 26.101 of this code with the
40-7 intent to injure, defraud, or deceive another person.
40-8 (b) An offense under this article is punishable by a fine of
40-9 not more than $10,000.
40-10 Art. 26.103. CIVIL RECOVERY. (a) A person who has been
40-11 injured by a violation of Article 26.101 of this code may bring an
40-12 action to recover damages against the person who committed the
40-13 violation.
40-14 (b) If a person violates Article 26.101 of this code with
40-15 the intent to injure, defraud, or deceive another person, a person
40-16 who has been injured by the violation may recover:
40-17 (1) actual damages;
40-18 (2) a penalty not to exceed twice the amount of actual
40-19 damages; and
40-20 (3) costs and attorney's fees incurred in bringing the
40-21 action.
40-22 SUBCHAPTER I. TORT LIABILITY
40-23 Art. 26.111. TORT ACTION LIMITED. (a) Except as provided
40-24 by this subchapter, a person may not recover damages for an
40-25 accidental injury arising, in whole or in part, out of the use of a
40-26 motor vehicle in this state.
40-27 (b) Except as provided by this subchapter, any person
41-1 involved in a motor vehicle accident in this state is subject to
41-2 the tort and liability limitations of this subchapter.
41-3 (c) This subchapter applies only to a claim for damages for
41-4 economic or noneconomic loss resulting from an accidental injury
41-5 caused by the negligent conduct or intentional misconduct of
41-6 another person, including a claim for loss of consortium or
41-7 companionship and any other claim brought by a person other than
41-8 the injured person.
41-9 (d) This subchapter applies to a claim made against a person
41-10 who, in the absence of this subchapter, would be vicariously liable
41-11 for the negligent conduct or intentional misconduct of another
41-12 person.
41-13 Art. 26.112. OWNER OF UNINSURED MOTOR VEHICLE.
41-14 Notwithstanding Articles 26.113 and 26.114 of this code, the owner
41-15 of an uninsured motor vehicle may not recover damages for loss
41-16 arising out of the use of the vehicle if personal compensation
41-17 benefits would have been provided had the owner complied with the
41-18 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
41-19 Vernon's Texas Civil Statutes).
41-20 Art. 26.113. UNCOMPENSATED ECONOMIC LOSS. (a) A person may
41-21 bring a cause of action to recover damages for uncompensated
41-22 economic loss arising, in whole or in part, out of the use of a
41-23 motor vehicle.
41-24 (b) In this article, "uncompensated economic loss" means the
41-25 portion of economic loss arising out of an accidental injury that
41-26 exceeds the sum of the personal compensation benefits that the
41-27 injured person is entitled to receive and benefits paid by persons
42-1 who are collateral sources for the purposes of Article 26.64 of
42-2 this code. The term does not include the amount of any deductible
42-3 under a personal compensation insurance policy.
42-4 Art. 26.114. MISCONDUCT. (a) A person may bring a cause of
42-5 action to recover damages for accidental injury against a person
42-6 who:
42-7 (1) caused the injury; and
42-8 (2) is convicted, in connection with the accident, of
42-9 a felony or an offense under Article 6701l-1, Revised Statutes, or
42-10 under Section 19.05(a)(2), Penal Code.
42-11 (b) A person who provides personal compensation benefits or
42-12 provides benefits as a collateral source under Article 26.64 of
42-13 this code is subrogated to the claim of the injured person against
42-14 the convicted person.
42-15 (c) An insurance policy, including a policy that provides
42-16 liability coverage or uninsured motorist insurance, may not provide
42-17 liability coverage for damages recovered under this article.
42-18 Art. 26.115. SERIOUS INJURY. (a) A person may bring a
42-19 cause of action for a serious injury arising, in whole or in part,
42-20 out of the use of a motor vehicle.
42-21 (b) In an action in which the defendant contends that the
42-22 injured person's injury is not a serious injury, either party may
42-23 file a motion seeking summary judgment on that issue. If there is
42-24 not a material issue of fact regarding the nature of the injury or
42-25 its effect on the injured person, the court shall decide whether
42-26 the injury is a serious injury and shall render summary judgment.
42-27 (c) The trial of any case in which a motion is filed under
43-1 Subsection (b) of this article may not begin until the 30th day
43-2 after the date on which the court makes a determination on the
43-3 motion. The court shall order a continuance of the case if
43-4 necessary to comply with this subsection.
43-5 (d) If the court renders summary judgment on a motion filed
43-6 under Subsection (b) of this article and finds that the party
43-7 against whom judgment is rendered did not have a reasonable basis
43-8 for its position, the court shall assess against that party
43-9 reasonable costs and attorney's fees, based on actual time,
43-10 incurred by the prevailing party to obtain the judgment.
43-11 (e) On motion of the defendant in an action tried to a jury
43-12 in which there is a material issue of fact as to whether the
43-13 injured person's injury is a serious injury, that issue shall be
43-14 separately tried and other evidence as to the plaintiff's
43-15 noneconomic loss may not be presented to the jury until that issue
43-16 has been resolved. After resolution of that issue, the amount of
43-17 the injured person's noneconomic loss may be tried before the same
43-18 jury or a different jury, as the court may in its discretion
43-19 decide.
43-20 (f) In this article:
43-21 (1) "Defendant" means a person from whom damages are
43-22 sought for an accidental injury arising, in whole or in part, out
43-23 of the use of a motor vehicle, including a counterdefendant,
43-24 cross-defendant, or third-party defendant.
43-25 (2) "Serious injury" means an accidental injury that
43-26 results in death, dismemberment, a significant and permanent loss
43-27 of an important body function caused by a continuing physical
44-1 injury, or significant and permanent disfigurement that is usually
44-2 visible while the injured person is clothed. The term does not
44-3 include a soft tissue injury.
44-4 Art. 26.116. INSURER'S RIGHT OF SUBROGATION. (a) A motor
44-5 vehicle insurer does not have a right to subrogation for personal
44-6 compensation benefits except as provided by this article and
44-7 Article 26.114 of this code.
44-8 (b) A motor vehicle insurer is subrogated, to the extent of
44-9 its obligation to pay personal compensation benefits, to a personal
44-10 compensation insured's rights under Article 26.114 of this code and
44-11 against any person who is not affected by the limitations on tort
44-12 rights and liabilities under this subchapter.
44-13 Art. 26.117. EFFECT OF CLAIM FOR DAMAGES ON PAYMENT OF
44-14 COMPENSATION BENEFITS. (a) Except as provided by this article, a
44-15 motor vehicle insurer shall pay personal compensation due
44-16 regardless of the value of a claim for damages for the accidental
44-17 injury.
44-18 (b) After recovery under a claim for damages is realized, a
44-19 motor vehicle insurer may subtract the amount of the net recovery
44-20 from the total amount of personal compensation to be paid.
44-21 (c) If payment under the personal compensation insurance
44-22 policy has already been made, the recipient of the payment shall
44-23 repay to the insurer an amount equal to the payment received, not
44-24 to exceed the amount of the net recovery. The insurer has a lien
44-25 on the recovery to the extent of the amount owed to the insurer
44-26 under this subsection.
44-27 (d) If the amount of the recovery exceeds the amount of
45-1 personal compensation benefits paid or owed by the insurer at the
45-2 time of the recovery, but the insurer is obligated to pay personal
45-3 compensation benefits in the future, the remaining amount of the
45-4 net recovery shall be subtracted from the benefits to be paid as
45-5 they become due until the amount of the recovery is exhausted. The
45-6 insurer shall reinstate payment of benefits at the time the amount
45-7 of the recovery is exhausted.
45-8 (e) In this article, "net recovery" means the amount
45-9 recovered under the claim for damages, less reasonable attorney's
45-10 fees and other reasonable expenses incurred in obtaining the
45-11 recovery.
45-12 SECTION 2. Articles 5.01(b) and (e), Insurance Code, are
45-13 amended to read as follows:
45-14 (b) The Board shall have the sole and exclusive power and
45-15 authority, and it shall be its duty to determine, fix, prescribe,
45-16 and promulgate just, reasonable and adequate rates of premiums to
45-17 be charged and collected by all insurers writing any form of
45-18 insurance on motor vehicles in this State, including insurance
45-19 providing personal compensation coverage under Chapter 26 of this
45-20 code and its subsequent amendments, fleet or other rating plans
45-21 designed to discourage losses from fire and theft and similar
45-22 hazards, and any rating plans designed to encourage the prevention
45-23 of accidents. In promulgating any such rating plans the Board
45-24 shall give due consideration to the peculiar hazards and experience
45-25 of individual risks, past and prospective, within and outside the
45-26 State and to all other relevant factors, within and outside the
45-27 State. The Board shall have the authority also to alter or amend
46-1 any and all of such rates of premiums so fixed and determined and
46-2 adopted by it, and to raise or lower the same or any part thereof.
46-3 (e) Motor vehicle or automobile insurance as referred to in
46-4 this subchapter shall be taken and construed to mean insurance
46-5 providing personal compensation coverage under Chapter 26 of this
46-6 code and its subsequent amendments and every form of insurance on
46-7 any automobile or other vehicle hereinafter enumerated and its
46-8 operating equipment or necessitated by reason of the liability
46-9 imposed by law for damages arising out of the ownership, operation,
46-10 maintenance, or use in this State of any automobile, motorcycle,
46-11 motorbicycle, truck, truck-tractor, tractor, traction engine, or
46-12 any other self-propelled vehicle, and including also every vehicle,
46-13 trailer or semi-trailer pulled or towed by a motor vehicle, but
46-14 excluding every motor vehicle running only upon fixed rails or
46-15 tracks. Workers' Compensation Insurance is excluded from the
46-16 foregoing definition.
46-17 SECTION 3. Article 5.06(l), Insurance Code, is amended to
46-18 read as follows:
46-19 (l) The Board shall adopt a policy form and endorsements for
46-20 each type of motor vehicle insurance subject to this subchapter.
46-21 The coverage provided by a policy form adopted under this
46-22 subsection is the minimum coverage that may be provided under an
46-23 insurance policy for that type of insurance in this State. <Each
46-24 policy form must provide the coverages mandated under Articles
46-25 5.06-1 and 5.06-3 of this code, except that the coverages may be
46-26 rejected by the named insured as provided by those articles.>
46-27 SECTION 4. Article 5.06-6, Insurance Code, is amended to
47-1 read as follows:
47-2 Art. 5.06-6. COVERAGES FOR SPOUSES AND FORMER SPOUSES. A
47-3 personal automobile policy or any similar policy form adopted or
47-4 approved by the State Board of Insurance under Article 5.06 of this
47-5 code and its subsequent amendments that provides coverage for an
47-6 injury <covers liability> arising out of ownership, maintenance, or
47-7 use of a motor vehicle of a spouse, who is otherwise insured by the
47-8 policy, shall contain a provision to continue coverage for the
47-9 spouse during a period of separation in contemplation of divorce.
47-10 SECTION 5. Section 1(a), Article 5.101, Insurance Code, is
47-11 amended to read as follows:
47-12 (a) The pilot program on flexible rating is created to help
47-13 stabilize the rates charged for insurance in all lines of <property
47-14 and casualty> insurance covered by Subchapters A through L of this
47-15 chapter, except ocean marine insurance, inland marine insurance,
47-16 fidelity, surety and guaranty bond insurance, errors and omissions
47-17 insurance, directors' and officers' liability insurance, general
47-18 liability insurance, commercial property insurance, workers'
47-19 compensation insurance, professional liability insurance for
47-20 physicians and health care providers as defined in Article 5.15-1
47-21 of this code, and attorney's professional liability insurance.
47-22 SECTION 6. Section 1, Texas Motor Vehicle
47-23 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
47-24 Statutes), is amended to read as follows:
47-25 Sec. 1. The following words and phrases, when used in this
47-26 Act, shall, for the purposes of this Act, have the meanings
47-27 respectively ascribed to them in this section, except in those
48-1 instances where the context clearly indicates a different meaning:
48-2 1. "Highway" means the entire width between property
48-3 lines of any road, street, way, thoroughfare, or bridge in the
48-4 State of Texas not privately owned or controlled, when any part
48-5 thereof is open to the public for vehicular traffic and over which
48-6 the State has legislative jurisdiction under its police power.
48-7 2. "Judgment"--Any judgment which shall have become
48-8 final by expiration without appeal of the time within which an
48-9 appeal might have been perfected, or by final affirmation on
48-10 appeal, rendered by a court of competent jurisdiction of any state
48-11 or of the United States, upon a cause of action arising out of the
48-12 ownership, maintenance or use of any motor vehicle, for damages,
48-13 including damages for care and loss of services, because of bodily
48-14 injury to or death of any person, or for damages because of injury
48-15 to or destruction of property, including the loss of use thereof,
48-16 or upon a cause of action on an agreement of settlement for such
48-17 damages.
48-18 3. "Motor Vehicle"--Every self-propelled vehicle which
48-19 is designed for use upon a highway, including trailers and
48-20 semitrailers designed for use with such vehicles (except traction
48-21 engines, road rollers and graders, tractor cranes, power shovels,
48-22 well drillers and implements of husbandry) and every vehicle which
48-23 is propelled by electric power obtained from overhead wires but not
48-24 operated upon rails.
48-25 4. "License"--Any driver's, operator's, commercial
48-26 operator's, or chauffeur's license, temporary instruction permit or
48-27 temporary license, or restricted license, issued under Article
49-1 6687b, Texas Revised Civil Statutes, pertaining to the licensing of
49-2 persons to operate motor vehicles.
49-3 5. "Nonresident"--Every person who is not a resident
49-4 of the State of Texas.
49-5 6. "Nonresident's Operating Privilege"--The privilege
49-6 conferred upon a nonresident by the laws of Texas pertaining to the
49-7 operation by him of a motor vehicle, or the use of a motor vehicle
49-8 owned by him, in the State of Texas.
49-9 7. "Operator"--Every person who is in actual physical
49-10 control of a motor vehicle.
49-11 8. "Owner"--A person who holds the legal title of a
49-12 motor vehicle, or in the event a motor vehicle is the subject of an
49-13 agreement for the conditional sale or lease thereof with the right
49-14 of purchase upon performance of the conditions stated in the
49-15 agreement and with an immediate right of possession vested in the
49-16 conditional vendee or lessee or in the event a mortgagor of a
49-17 vehicle is entitled to possession, then such conditional vendee or
49-18 lessee or mortgagor shall be deemed the owner for the purposes of
49-19 this Act.
49-20 9. "Person"--Every natural person, firm,
49-21 copartnership, association or corporation.
49-22 10. "Proof of Financial Responsibility" means evidence
49-23 of compliance with or exemption from Section 1A of this Act and
49-24 includes any document that may be furnished to a peace officer or
49-25 person involved in an accident in compliance with Section 1B of
49-26 this Act. <Proof of ability to respond in damages for liability,
49-27 on account of accidents occurring subsequent to the effective date
50-1 of said proof, arising out of the ownership, maintenance or use of
50-2 a motor vehicle, in the following amounts: effective January 1,
50-3 1984, Fifteen Thousand Dollars ($15,000) because of bodily injury
50-4 to or death of one person in any one accident, and, subject to said
50-5 limit for one person, Thirty Thousand Dollars ($30,000) because of
50-6 bodily injury to or death of two (2) or more persons in any one
50-7 accident, and Fifteen Thousand Dollars ($15,000) because of injury
50-8 to or destruction of property of others in any one accident and
50-9 effective January 1, 1986, Twenty Thousand Dollars ($20,000)
50-10 because of bodily injury to or death of one person in any one
50-11 accident, and, subject to said limit for one person, Forty Thousand
50-12 Dollars ($40,000) because of bodily injury to or death of two (2)
50-13 or more persons in any one accident, and Fifteen Thousand Dollars
50-14 ($15,000) because of injury to or destruction of property of others
50-15 in any one accident. The proof of ability to respond in damages
50-16 may exclude the first Two Hundred Fifty Dollars ($250) of liability
50-17 for bodily injury to or death of any one person in any one
50-18 accident, and, subject to that exclusion for one person, may
50-19 exclude the first Five Hundred Dollars ($500) of liability for the
50-20 bodily injury to or death of two (2) or more persons in any one
50-21 accident and may exclude the first Two Hundred Fifty Dollars ($250)
50-22 of liability for the injury to or destruction of property of others
50-23 in any one accident.>
50-24 11. "Registration"--Registration or license
50-25 certificate or license receipt or dealer's license and registration
50-26 or number plates issued under Article 6675a or Article 6686, Texas
50-27 Revised Civil Statutes, and its subsequent amendments, pertaining
51-1 to the registration of motor vehicles.
51-2 12. "Department" means the Department of Public Safety
51-3 of the State of Texas, acting directly or through its authorized
51-4 officers and agents, except in such sections of this Act in which
51-5 some other State Department is specifically named.
51-6 13. "State"--Any state, territory or possession of the
51-7 United States, the District of Columbia, or any province of the
51-8 Dominion of Canada.
51-9 14. "Volunteer Fire Department" means a company,
51-10 department, or association whose members receive no or nominal
51-11 compensation and that is organized in an unincorporated area for
51-12 the purpose of answering fire alarms and extinguishing fires or
51-13 answering fire alarms, extinguishing fires, and providing emergency
51-14 medical services.
51-15 SECTION 7. Sections 1A(a), (b), and (d), Texas Motor Vehicle
51-16 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
51-17 Statutes), are amended to read as follows:
51-18 (a) On and after January 1, 1982, no motor vehicle may be
51-19 operated in this State unless a policy of motor vehicle <automobile
51-20 liability> insurance that complies with Section 1A-1 of <in at
51-21 least the minimum amounts to provide evidence of financial
51-22 responsibility under> this Act is in effect to insure against
51-23 potential losses which may arise out of the operation of that
51-24 vehicle.
51-25 (b) The following vehicles are exempt from the requirement
51-26 of Subsection (a) of this section:
51-27 (1) vehicles exempt by Section 33 of this Act;
52-1 (2) any vehicles for which the title is held in the
52-2 name of a volunteer fire department;
52-3 (3) <vehicles for which a bond is on file with the
52-4 Department as provided by Section 24 of this Act, or for which a
52-5 certificate has been obtained from the State Treasurer stating that
52-6 the owner and/or operator has deposited with the State Treasurer
52-7 Fifty-Five Thousand Dollars ($55,000) in cash or securities as
52-8 provided by Section 25 of this Act. Such bond or deposit may be
52-9 filed in lieu of carrying automobile liability insurance where
52-10 proof is required;>
52-11 <(4)> vehicles that are self-insured under Section 34
52-12 of this Act; and
52-13 (4) <(5)> implements of husbandry<; and>
52-14 <(6) vehicles for which a valid certificate certifying
52-15 that cash or a cashier's check in the amount of at least Fifty-Five
52-16 Thousand Dollars ($55,000) is deposited with the county judge of
52-17 the county in which the vehicle is registered has been:>
52-18 <(A) issued by the county judge and acknowledged
52-19 by the sheriff of that county; and>
52-20 <(B) filed with the Department>.
52-21 (d) Subsection (b) of this section may not be construed to
52-22 exempt a person who is operating a vehicle for which title is held
52-23 in the name of a volunteer fire department from the <liability>
52-24 insurance requirements of this Act.
52-25 SECTION 8. The Texas Motor Vehicle Safety-Responsibility Act
52-26 (Article 6701h, Vernon's Texas Civil Statutes) is amended by adding
52-27 Section 1A-1 to read as follows:
53-1 Sec. 1A-1. The owner or operator of a motor vehicle may
53-2 satisfy the financial responsibility requirement of this Act with a
53-3 motor vehicle insurance policy providing at least:
53-4 (1) basic personal compensation coverage in accordance
53-5 with Chapter 26, Insurance Code, and its subsequent amendments; and
53-6 (2) insurance covering the liability of the owner or
53-7 operator for liability for injury to or destruction of the property
53-8 of others arising out of the operation or use of the motor vehicle
53-9 in the amount of $15,000 for any one accident, subject to a
53-10 deductible not to exceed $250.
53-11 SECTION 9. Section 1B(a), Texas Motor Vehicle
53-12 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
53-13 Statutes), is amended to read as follows:
53-14 (a) As a condition of operating a motor vehicle in this
53-15 state, the operator of the motor vehicle shall furnish, on request
53-16 of a peace officer or a person involved in an accident with the
53-17 operator:
53-18 (1) an <a liability> insurance policy that complies
53-19 with Section 1A-1 of <in at least the minimum amounts required by>
53-20 this Act, or a photocopy of that policy, that covers the vehicle;
53-21 (2) a standard proof of <liability> insurance form
53-22 promulgated by the Texas Department of Insurance and issued by an
53-23 <a liability> insurer that:
53-24 (A) includes the name of the insurer;
53-25 (B) includes the insurance policy number;
53-26 (C) includes the policy period;
53-27 (D) includes the name and address of each
54-1 insured;
54-2 (E) includes the policy limits or a statement
54-3 that the coverage of the policy complies with Section 1A-1 of <at
54-4 least the minimum amounts of liability insurance required by> this
54-5 Act; and
54-6 (F) includes the make and model of each covered
54-7 vehicle;
54-8 (3) an insurance binder that confirms that the
54-9 operator is in compliance with this Act; or
54-10 (4) a certificate or copy of a certificate issued by
54-11 the department that shows the vehicle is covered by
54-12 self-insurance<;>
54-13 <(5) a certificate issued by the state treasurer that
54-14 shows that the owner of the vehicle has on deposit with the
54-15 treasurer money or securities in at least the amount required by
54-16 Section 25 of this Act;>
54-17 <(6) a certificate issued by the department that shows
54-18 that the vehicle is a vehicle for which a bond is on file with the
54-19 department as provided by Section 24 of this Act; or>
54-20 <(7) a copy of a certificate issued by the county
54-21 judge of a county in which the vehicle is registered that shows
54-22 that the owner of the vehicle has on deposit with the county judge
54-23 cash or a cashier's check in at least the amount required by
54-24 Section 1A(b)(6) of this Act>.
54-25 SECTION 10. Sections 1D and 1E, Texas Motor Vehicle
54-26 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
54-27 Statutes), are amended to read as follows:
55-1 Sec. 1D. It is a defense to prosecution under this Act if
55-2 the person charged produces in court an <automobile liability>
55-3 insurance policy that complies with Section 1A-1 of this Act or a
55-4 certificate of self-insurance previously issued to that person that
55-5 was valid at the time that the offense is alleged to have occurred
55-6 and the charge shall be dismissed.
55-7 Sec. 1E. When notified of an accident by the Department in
55-8 which an owner or operator has reported evidence of financial
55-9 responsibility with an insurance company, the insurance company so
55-10 notified shall be required to respond to the Department only if
55-11 there is not a policy of <liability> insurance that complies with
55-12 Section 1A-1 of this Act in effect, as reported.
55-13 SECTION 11. Sections 1F(a) and (f), Texas Motor Vehicle
55-14 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
55-15 Statutes), are amended to read as follows:
55-16 (a) The department shall suspend the driver's license and
55-17 motor vehicle registration of a person convicted of an offense
55-18 under Section 1C(a) of this Act, if a prior conviction of the
55-19 person under Section 1C(a) of this Act has been previously reported
55-20 to the department by a magistrate or the judge or clerk of a court,
55-21 unless the person establishes and maintains proof of financial
55-22 responsibility for two years from the date of the second or
55-23 subsequent conviction. The requirement for filing proof of
55-24 financial responsibility may be waived if satisfactory evidence is
55-25 filed with the Department that the party convicted was at the time
55-26 of arrest covered by a policy of <liability> insurance that
55-27 complies with Section 1A-1 of this Act or was otherwise exempt as
56-1 provided in Section 1A(b) of this Act.
56-2 (f) The following evidence of financial responsibility or a
56-3 photocopy of the evidence satisfies the requirement of Subsection
56-4 (e) of this section:
56-5 (1) an <a liability> insurance policy that complies
56-6 with Section 1A-1 of <in at least the minimum amounts required by>
56-7 this Act to provide proof of financial responsibility covering at
56-8 least the period required by Subsection (e) of this section;
56-9 (2) a standard proof of <liability> insurance form
56-10 promulgated by the Texas Department of Insurance and issued by an
56-11 <a liability> insurer that includes:
56-12 (A) the name of the insurer;
56-13 (B) the insurance policy number;
56-14 (C) the policy period, which must equal or
56-15 exceed the period required by Subsection (e) of this section;
56-16 (D) the name and address of each insured; and
56-17 (E) the policy limits or a statement that the
56-18 coverage of the policy complies with Section 1A-1 of <at least the
56-19 minimum amounts of liability insurance required by> this Act;
56-20 (3) an insurance binder that confirms to the
56-21 satisfaction of the court that the defendant is in compliance with
56-22 this Act for at least the period required by Subsection (e) of this
56-23 section; or
56-24 (4) a copy of a certificate issued by the Department
56-25 of Public Safety that shows that the vehicle to be registered is
56-26 covered by self-insurance<;>
56-27 <(5) a certificate issued by the state treasurer that
57-1 shows that the owner of the vehicle has on deposit with the
57-2 treasurer money or securities in at least the amount required by
57-3 Section 25 of this Act;>
57-4 <(6) a certificate issued by the Department that shows
57-5 that the vehicle is a vehicle for which a bond is on file with the
57-6 Department as provided by Section 24 of this Act; or>
57-7 <(7) a copy of a certificate issued by the county
57-8 judge of a county in which the vehicle is registered that shows
57-9 that the owner of the vehicle has on deposit with the county judge
57-10 cash or a cashier's check in at least the amount required by
57-11 Section 1A(b)(6) of this Act>.
57-12 SECTION 12. Section 5(c), Texas Motor Vehicle
57-13 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
57-14 Statutes), is amended to read as follows:
57-15 (c) This section shall not apply under the conditions stated
57-16 in Section 6 nor:
57-17 1. To a motor vehicle operator or owner against whom
57-18 the Department or a person presiding at a hearing finds there is
57-19 not a reasonable probability of a judgment being rendered as a
57-20 result of the accident;
57-21 2. To such operator or owner if such owner had in
57-22 effect at the time of such accident a motor vehicle insurance
57-23 <liability> policy with respect to the motor vehicle involved in
57-24 such accident;
57-25 3. To such operator, if not the owner of such motor
57-26 vehicle, if there was in effect at the time of such accident a
57-27 motor vehicle insurance <liability> policy <or bond> with respect
58-1 to his operation of motor vehicles not owned by him;
58-2 4. To any person employed by the government of the
58-3 United States, when such person is acting within the scope or
58-4 office of his employment;
58-5 5. To such operator or owner if the liability of such
58-6 operator or owner for damages resulting from such accident is, in
58-7 the judgment of the Department, covered by any other form of
58-8 liability insurance policy or bond; nor
58-9 6. To any person qualifying as a self-insurer under
58-10 Section 34 of this Act, or to any person operating a motor vehicle
58-11 for such self-insurer.
58-12 No such policy or bond shall be effective under this section
58-13 or under Section 7 unless issued by an insurance company or surety
58-14 company authorized to write motor vehicle <liability> insurance in
58-15 this State, except that if such motor vehicle was not registered in
58-16 this State, or was a motor vehicle which was registered elsewhere
58-17 than in this State at the effective date of the policy, or the most
58-18 recent renewal thereof, such policy or bond shall not be effective
58-19 under this section unless the insurance company or surety company
58-20 if not authorized to do business in this State shall execute a
58-21 power of attorney authorizing the Department to accept service on
58-22 its behalf of notice or process in any action upon such policy or
58-23 bond arising out of such accident. The policy or bond must provide
58-24 coverage at least equivalent to that required under Section 1A-1 of
58-25 this Act<; providing, however, every such policy or bond is
58-26 subject, if the accident has resulted in bodily injury or death, to
58-27 a limit, exclusive of interest and costs, as follows: effective
59-1 January 1, 1984, not less than Fifteen Thousand Dollars ($15,000)
59-2 because of bodily injury to or death of one person in any one
59-3 accident and, subject to said limit for one person, to a limit of
59-4 not less than Thirty Thousand Dollars ($30,000) because of bodily
59-5 injury to or death of two (2) or more persons in any one accident,
59-6 and, if the accident has resulted in injury to or destruction of
59-7 property, to a limit of not less than Fifteen Thousand Dollars
59-8 ($15,000) because of injury to or destruction of property of others
59-9 in any one accident and effective January 1, 1986, not less than
59-10 Twenty Thousand Dollars ($20,000) because of bodily injury to or
59-11 death of one person in any one accident, and, subject to said limit
59-12 for one person, to a limit of not less than Forty Thousand Dollars
59-13 ($40,000) because of bodily injury to or death of two (2) or more
59-14 persons in any one accident, and, if the accident has resulted in
59-15 injury to or destruction of property, to a limit of not less than
59-16 Fifteen Thousand Dollars ($15,000) because of injury to or
59-17 destruction of property of others in any one accident. The policy
59-18 or bond may exclude coverage of the first Two Hundred Fifty Dollars
59-19 ($250) of liability for bodily injury to or death of any one person
59-20 in any one accident, and, subject to that exclusion for one person,
59-21 may exclude coverage for the first Five Hundred Dollars ($500) of
59-22 liability for the bodily injury to or death of two (2) or more
59-23 persons in any one accident and may exclude coverage for the first
59-24 Two Hundred Fifty Dollars ($250) of liability for the injury to or
59-25 destruction of property of others in any one accident>.
59-26 7. Wherever the word "bond" appears in this section or
59-27 this Act, it shall mean a bond filed with and approved by the
60-1 Department of Public Safety.
60-2 SECTION 13. Section 8(c), Texas Motor Vehicle
60-3 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
60-4 Statutes), is amended to read as follows:
60-5 (c) Upon receipt of certification by the Department that the
60-6 operating privilege of a Texas resident has been suspended or
60-7 revoked in another state pursuant to a law providing for its
60-8 suspension or revocation for failure to deposit security for the
60-9 payment of judgments arising out of a motor vehicle accident, for
60-10 failure to satisfy any judgment, or for failure to file proof of
60-11 financial responsibility, the Department shall contact the official
60-12 who issued the certification and request information pertaining to
60-13 the specific nature of the Texas resident's noncompliance. If the
60-14 alleged noncompliance is based on the failure of the Texas
60-15 resident's insurance company or surety company to obtain
60-16 authorization to write motor vehicle <liability> insurance in the
60-17 other state and for failure of the insurance or surety company to
60-18 execute a power of attorney directing the appropriate official in
60-19 the other state to accept service on its behalf of notice or
60-20 process in any action upon the policy arising out of the accident,
60-21 then the Department shall not suspend the Texas resident's license
60-22 and other registrations. If the evidence shows that the Texas
60-23 resident's operating privilege was suspended in the other state for
60-24 any other violation of another state's laws providing for
60-25 suspension or revocation for failure to deposit security for the
60-26 payment of judgments arising out of motor vehicle accidents, for
60-27 failure to satisfy any judgment, or for failure to file proof of
61-1 financial responsibility, under circumstances that would require
61-2 the Department to suspend a nonresident's operating privilege had
61-3 the accident occurred in this state, then the Department shall
61-4 suspend the Texas resident's license and registrations. The
61-5 suspension shall continue until the resident furnishes evidence of
61-6 his compliance with the law of the other state relating to the
61-7 deposit of security, satisfaction of judgment, or proof of
61-8 financial responsibility.
61-9 SECTION 14. Section 13(c), Texas Motor Vehicle
61-10 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
61-11 Statutes), is amended to read as follows:
61-12 (c) Notwithstanding any other provision of this Act any
61-13 person whose license, registration or nonresident's operating
61-14 privilege has been suspended, or is about to be suspended or shall
61-15 become subject to suspension under this Article, may relieve
61-16 himself from the effect of the judgment by filing with the
61-17 Department satisfactory evidence that there was in effect at the
61-18 time of the accident out of which the judgment arose a policy of
61-19 <liability> insurance covering the operation of the motor vehicle
61-20 involved and filing with the Department an affidavit stating that
61-21 at the time of the accident upon which the judgment has been
61-22 rendered he was insured, that the insurer is liable to pay such
61-23 judgment, and the reason, if known, why the insurance company has
61-24 not paid the judgment. He shall also file the original policy of
61-25 insurance or a certified copy thereof, if available, and such other
61-26 documents as the Department may require to show that the loss,
61-27 injury, or damage for which the judgment was rendered, was covered
62-1 by the policy of insurance.
62-2 If the Department is satisfied from such papers that the
62-3 insurer was authorized to issue the policy of insurance in this
62-4 State at the time of issuing the policy and that such insurer is
62-5 liable to pay such judgment, at least to the extent and for the
62-6 amounts provided in this Article, the Department shall not suspend
62-7 the license, registration or nonresident's operating privilege, or
62-8 if already suspended, shall reinstate them.
62-9 Any person whose license, registration or nonresident's
62-10 operating privilege has heretofore been suspended under the
62-11 provisions of this Article may take advantage of this Section.
62-12 SECTION 15. Section 15, Texas Motor Vehicle
62-13 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
62-14 Statutes), is amended to read as follows:
62-15 Sec. 15. Judgments herein referred to shall, for the purpose
62-16 of this Act only, be deemed satisfied:
62-17 1. When $20,000 <the amount set out in Subdivision (6)
62-18 of Subsection (c) of Section 5 of this Act for bodily injury to or
62-19 death of one person in any one accident> has been credited upon any
62-20 judgment or judgments rendered in excess of that amount because of
62-21 bodily injury to or death of one person as the result of any one
62-22 accident;
62-23 2. When $40,000<, subject to the limit set out in
62-24 Subdivision (6) of Subsection (c) of Section 5 of this Act because
62-25 of bodily injury to or death of one person, the sum set out in
62-26 Subdivision (6) of Subsection (c) of Section 5 of this Act for
62-27 bodily injury to or death of two (2) or more persons in any one
63-1 accident> has been credited upon any judgment or judgments rendered
63-2 in excess of that amount because of bodily injury to or death of
63-3 two (2) or more persons as the result of any one accident, subject
63-4 to a limit of $20,000 for any one person in the accident; or
63-5 3. When $15,000 <the sum set out in Subdivision (6) of
63-6 Subsection (c) of Section 5 of this Act for injury to or
63-7 destruction of property of others in any one accident> has been
63-8 credited upon any judgment or judgments rendered in excess of that
63-9 amount because of injury to or destruction of property of others as
63-10 a result of any one accident;
63-11 Provided, however, payments made in settlement of any claims
63-12 because of bodily injury, death or property damage arising from a
63-13 motor vehicle accident shall be credited in reduction of the
63-14 amounts provided for in this Section.
63-15 SECTION 16. Section 20(a), Texas Motor Vehicle
63-16 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
63-17 Statutes), is amended to read as follows:
63-18 (a) The non-resident owner of a motor vehicle not registered
63-19 in this State may give proof of financial responsibility by filing
63-20 with the Department a certificate or certificates of an insurance
63-21 company authorized to transact business in the state in which the
63-22 motor vehicle or motor vehicles covered in such certificate are
63-23 registered, or if such non-resident does not own a motor vehicle,
63-24 then in the state in which the insured resides, provided such
63-25 certificate otherwise conforms to the provisions of this Act, and
63-26 the Department shall accept the same upon condition that said
63-27 insurance company complies with the following provisions with
64-1 respect to the policies so certified:
64-2 1. Said insurance company shall execute a power of
64-3 attorney authorizing the Department to accept service on its behalf
64-4 of notice or process in any action arising out of a motor vehicle
64-5 accident in this State; and
64-6 2. Said insurance company shall agree in writing that
64-7 such policies shall be deemed to conform with the laws of this
64-8 State relating to the terms of motor vehicle insurance <liability>
64-9 policies issued herein.
64-10 SECTION 17. Section 29, Texas Motor Vehicle
64-11 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
64-12 Statutes), is amended to read as follows:
64-13 Sec. 29. The Department shall upon request consent to the
64-14 immediate cancellation of any bond or certificate of insurance, <or
64-15 the Department shall direct and the State Treasurer shall return to
64-16 the person entitled thereto any money or securities deposited
64-17 pursuant to this Act as proof of financial responsibility,> or the
64-18 Department shall waive the requirement of filing proof, in any of
64-19 the following events:
64-20 1. At any time after two (2) years from the date such
64-21 proof was required when, during the two-year period preceding the
64-22 request, the Department has not received record of a conviction or
64-23 a forfeiture of bail which would require or permit the suspension
64-24 or revocation of the license, registration or nonresident's
64-25 operating privilege of the person by or for whom such proof was
64-26 furnished; or
64-27 2. In the event of the death of the person on whose
65-1 behalf such proof was filed or the permanent incapacity of such
65-2 person to operate a motor vehicle; or
65-3 3. In the event the person who has given proof
65-4 surrenders his license and registration to the Department;
65-5 <Provided, however, that the Department shall not consent to
65-6 the cancellation of any bond or the return of any money or
65-7 securities in the event any action for damages upon a liability
65-8 covered by such proof is then pending or any judgment upon any such
65-9 liability is then unsatisfied, or in the event the person who has
65-10 filed such bond or deposited such money or securities has, within
65-11 two (2) years immediately preceding such request, been involved as
65-12 an operator or owner in any motor vehicle accident resulting in
65-13 injury or damage to the person or property of others. An affidavit
65-14 of the applicant as to the nonexistence of such facts, or that he
65-15 has been released from all of his liability, or has been finally
65-16 adjudicated not to be liable, for such injury or damage, shall be
65-17 sufficient evidence thereof in the absence of evidence to the
65-18 contrary in the records of the Department.>
65-19 Whenever any person whose proof has been cancelled <or
65-20 returned> under Subdivision 3 of this Section applies for a license
65-21 or registration within a period of two (2) years from the date
65-22 proof was originally required, any such application shall be
65-23 refused unless the applicant shall re-establish such proof for the
65-24 remainder of such two-year period.
65-25 SECTION 18. Section 35, Texas Motor Vehicle
65-26 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
65-27 Statutes), is amended to read as follows:
66-1 Sec. 35. Subject to the provisions of Article 5.10, <Texas>
66-2 Insurance Code, and its subsequent amendments <of 1951, as
66-3 amended>, insurance companies authorized to issue motor vehicle
66-4 insurance <liability> policies in this state may establish an
66-5 administrative agency and make necessary reasonable rules in
66-6 connection therewith, relative to the formation of a plan and
66-7 procedure to provide a means by which insurance may be assigned to
66-8 an authorized insurance company for a person required by this Act
66-9 to show proof of financial responsibility for the future and who is
66-10 in good faith entitled to motor vehicle <liability> insurance in
66-11 this state but is unable to secure it through ordinary methods; or,
66-12 in amounts not to exceed the limits required under Section 1A-1 of
66-13 this Act <prescribed in Section 21(b)2 of this law>, for any unit
66-14 of government within the State of Texas which, acting in good
66-15 faith, is unable to secure motor vehicle <liability> insurance in
66-16 this state through ordinary methods; and may establish a plan and
66-17 procedure for the equitable apportionment among such authorized
66-18 companies of applicants for such policies and for motor vehicle
66-19 insurance <liability> policies, including, but not limited to,
66-20 voluntary agreements by insurance companies to accept such
66-21 assignments. When any such plan has been approved by the State
66-22 Board of Insurance, all insurance companies authorized to issue
66-23 motor vehicle insurance <liability> policies in the State of Texas
66-24 shall subscribe thereto and participate therein.
66-25 The State Board of Insurance, in addition to the provisions
66-26 prescribed by Subchapter A, Chapter 5, <Texas> Insurance Code, and
66-27 its subsequent amendments <of 1951, as amended>, may determine,
67-1 fix, prescribe, promulgate, change, and amend rates or minimum
67-2 premiums normally applicable to a risk so as to apply to any and
67-3 every assignment such rates and minimum premiums as are
67-4 commensurate with the greater hazard of the risk, considering in
67-5 connection therewith the experience, physical or other conditions
67-6 of such risk of the person or municipality applying for insurance
67-7 under any such plan.
67-8 SECTION 19. Sections 2a(d) and (e), Chapter 88, General
67-9 Laws, Acts of the 41st Legislature, 2nd Called Session, 1929
67-10 (Article 6675a-2a, Vernon's Texas Civil Statutes), are amended to
67-11 read as follows:
67-12 (d) The following evidence of financial responsibility or a
67-13 photocopy of the evidence satisfies the requirement of this
67-14 section:
67-15 (1) an <a liability> insurance policy or <liability>
67-16 self-insurance or pool coverage document issued by a political
67-17 subdivision or governmental pool pursuant to the authority
67-18 contained in The Interlocal Cooperation Act (Article 4413(32c),
67-19 Vernon's Texas Civil Statutes) and its subsequent amendments,
67-20 Chapter 119, Local Government Code, and its subsequent amendments,
67-21 or other applicable law in at least the minimum amounts required by
67-22 the Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
67-23 Vernon's Texas Civil Statutes) and its subsequent amendments to
67-24 provide proof of financial responsibility covering at least the
67-25 period required by Subsection (a) of this section;
67-26 (2) a standard proof of insurance <liability> form
67-27 promulgated by the Texas Department of Insurance and issued by an
68-1 <a liability> insurer that includes:
68-2 (A) the name of the insurer;
68-3 (B) the insurance policy or other coverage
68-4 document number;
68-5 (C) the policy or other coverage document
68-6 coverage period;
68-7 (D) the name and address of each insured or
68-8 covered person;
68-9 (E) the policy or other coverage document limits
68-10 or a statement that the coverage of the policy complies with at
68-11 least the minimum amounts of <liability> insurance required by the
68-12 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
68-13 Vernon's Texas Civil Statutes) and its subsequent amendments; and
68-14 (F) the make and model of each covered vehicle;
68-15 (3) an insurance binder that confirms to the
68-16 satisfaction of the county tax collector that the owner of the
68-17 motor vehicle to be registered is in compliance with the Texas
68-18 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
68-19 Texas Civil Statutes) and its subsequent amendments for at least
68-20 the period required by Subsection (a) of this section; or
68-21 (4) a copy of a certificate issued by the Department
68-22 of Public Safety that shows that the vehicle to be registered is
68-23 covered by self-insurance<;>
68-24 <(5) a certificate issued by the state treasurer that
68-25 shows that the owner of the vehicle has on deposit with the
68-26 treasurer money or securities in at least the amount required by
68-27 Section 25 of the Texas Motor Vehicle Safety-Responsibility Act
69-1 (Article 6701h, Vernon's Texas Civil Statutes);>
69-2 <(6) a certificate issued by the Department of Public
69-3 Safety that shows that the vehicle is a vehicle for which a bond is
69-4 on file with the Department as provided by Section 24 of the Texas
69-5 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
69-6 Texas Civil Statutes); or>
69-7 <(7) a copy of a certificate issued by the county
69-8 judge of a county in which the vehicle is registered that shows
69-9 that the owner of the vehicle has on deposit with the county judge
69-10 cash or a cashier's check in at least the amount required by
69-11 Section 1A(b)(6) of the Texas Motor Vehicle Safety-Responsibility
69-12 Act (Article 6701h, Vernon's Texas Civil Statutes)>.
69-13 (e) At the time the county tax collector registers a motor
69-14 vehicle, the tax collector shall provide to the person registering
69-15 the motor vehicle a separate document that contains a statement
69-16 that the motor vehicle being registered may not be operated in this
69-17 state unless <liability> insurance coverage for the vehicle in at
69-18 least the minimum amounts required by law remains in effect <to
69-19 insure against potential losses> or unless the motor vehicle is
69-20 exempt from the insurance requirement by Section 1A(b), Texas Motor
69-21 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
69-22 Civil Statutes), and its subsequent amendments.
69-23 SECTION 20. Section 6(c), Chapter 173, Acts of the 47th
69-24 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
69-25 Civil Statutes), is amended to read as follows:
69-26 (c) An application for an original or renewal driver's
69-27 license must be accompanied by evidence of financial responsibility
70-1 or a statement that the applicant does not own a motor vehicle for
70-2 which maintenance of financial responsibility is required under the
70-3 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
70-4 Vernon's Texas Civil Statutes) and its subsequent amendments.
70-5 Evidence of financial responsibility presented under this
70-6 subsection must comply with Section 1A-1 <be in at least the
70-7 minimum amounts required by Subdivision 10, Section 1>, Texas Motor
70-8 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
70-9 Civil Statutes), and its subsequent amendments, must cover each
70-10 motor vehicle that the applicant owns and for which the applicant
70-11 is required to maintain financial responsibility, and may be shown
70-12 in the manner specified under Section 1B(b) of that Act. A
70-13 statement that the applicant does not own an applicable motor
70-14 vehicle must be sworn to and signed by the applicant.
70-15 SECTION 21. (a) Articles 5.06-1 and 5.06-3, Insurance Code,
70-16 are repealed.
70-17 (b) Sections 18, 19, 21, 22, 24, and 25, Texas Motor Vehicle
70-18 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
70-19 Statutes), are repealed.
70-20 SECTION 22. (a) The State Board of Insurance shall reduce
70-21 the benchmark rate applicable to motor vehicle insurance policies
70-22 under Subchapter M, Chapter 5, Insurance Code, that is in effect
70-23 for policies affected by this Act and that are delivered, issued
70-24 for delivery, or renewed, during the first year following the
70-25 effective date of this Act by 15 percent.
70-26 (b) If Subchapter I, Chapter 26, Insurance Code, as added by
70-27 this Act, is finally determined to be invalid by a court of
71-1 competent jurisdiction, motor vehicle insurers may assess a premium
71-2 surcharge, in an amount approved by the State Board of Insurance,
71-3 to recover losses resulting from that determination.
71-4 SECTION 23. (a) Except as provided by Subsection (b) of
71-5 this section, this Act takes effect September 1, 1993.
71-6 (b) Sections 6 through 21 of this Act take effect January 1,
71-7 1994.
71-8 (c) This Act applies only to an insurance policy that is
71-9 delivered, issued for delivery, or renewed on or after January 1,
71-10 1994. A policy that is delivered, issued for delivery, or renewed
71-11 before January 1, 1994, is governed by the law as it existed
71-12 immediately before the effective date of this Act, and that law is
71-13 continued in effect for that purpose.
71-14 (d) Subchapter I, Chapter 26, Insurance Code, as added by
71-15 this Act, applies only to an action to recover damages for
71-16 accidental injury that accrues on or after January 1, 1994. An
71-17 action that accrues before January 1, 1994, is governed by the law
71-18 in effect at the time the action accrues, and that law is continued
71-19 in effect for that purpose.
71-20 SECTION 24. The importance of this legislation and the
71-21 crowded condition of the calendars in both houses create an
71-22 emergency and an imperative public necessity that the
71-23 constitutional rule requiring bills to be read on three several
71-24 days in each house be suspended, and this rule is hereby suspended.