By: Counts H.B. No. 1065
73R4711 DLF-F
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 necessary medical, surgical, X ray, dental,
2-5 ambulance, hospital, medical rehabilitation, and professional
2-6 nursing services expenses. The term includes expenses for
2-7 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 Art. 26.32. OTHER COVERAGE. (a) A motor vehicle insurer
8-18 may make available personal compensation insurance that provides
8-19 benefits in addition to and different from the benefits described
8-20 by Article 26.31(a) of this code.
8-21 (b) Subject to approval by the commissioner, a motor vehicle
8-22 insurer may make available personal compensation coverage without a
8-23 deductible or subject to a reasonable deductible different from the
8-24 deductible required under Article 26.31(a) of this code.
8-25 Art. 26.33. COVERED PERSONS. Personal compensation coverage
8-26 provides benefits for:
8-27 (1) any person identified by name as an insured under
9-1 the personal compensation insurance policy;
9-2 (2) any resident relative of the first person
9-3 identified by name as an insured under the policy; and
9-4 (3) any person who sustains an accidental injury in
9-5 this state:
9-6 (A) while occupying a motor vehicle insured by
9-7 the policy; or
9-8 (B) through being struck by a motor vehicle
9-9 insured by the policy.
9-10 Art. 26.34. PERSONS EXCLUDED FROM COVERAGE. (a) Except as
9-11 provided by Subsection (b) of this article, a motor vehicle
9-12 insurance policy may not provide personal compensation coverage for
9-13 a person who is injured while:
9-14 (1) committing a felony;
9-15 (2) voluntarily using a motor vehicle that the injured
9-16 person knows is stolen;
9-17 (3) driving while intoxicated;
9-18 (4) using a motor vehicle owned by, or furnished or
9-19 available for the regular use of, the injured person or the injured
9-20 person's resident relative, if the motor vehicle is not described
9-21 in the policy under which a claim is made and is not a newly
9-22 acquired or replacement motor vehicle covered under the terms of
9-23 the policy;
9-24 (5) using a motor vehicle that is not covered by motor
9-25 vehicle insurance that meets the requirements of the Texas Motor
9-26 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
9-27 Civil Statutes), if the injured person is not a named insured or a
10-1 resident relative of a named insured; or
10-2 (6) guilty of intentional misconduct.
10-3 (b) A motor vehicle insurance policy may include personal
10-4 compensation coverage for a person mentioned in this article only
10-5 if language clearly manifesting an intent to provide that coverage
10-6 is included in the policy.
10-7 (c) In this article:
10-8 (1) "Intentional misconduct" means an act or omission
10-9 by an injured person that causes or substantially contributes to
10-10 harm and that the actor commits for the purpose of causing harm or
10-11 knowing that harm is substantially certain to follow. An act or
10-12 omission is not intentional misconduct:
10-13 (A) solely because the act was intentional or
10-14 committed with the knowledge that the act creates a grave risk of
10-15 causing harm; or
10-16 (B) if committed for the purpose of averting
10-17 bodily harm to any person.
10-18 (2) "Intoxicated" has the meaning assigned by Article
10-19 6701l-1, Revised Statutes.
10-20 (d) For purposes of this article, if a peace officer
10-21 requests that an injured person submit to a test of blood, breath,
10-22 or urine in connection with the accident, the person shall be
10-23 considered to have been driving while intoxicated at the time of
10-24 the accident if the person:
10-25 (1) refuses to submit to the test;
10-26 (2) does not submit to the test and does not expressly
10-27 agree to submit to the test; or
11-1 (3) refuses to complete the test.
11-2 Art. 26.35. MEDICAL EXPENSE BENEFIT PAYMENT LIMITS. (a) A
11-3 person may not require, request, or accept a payment for a
11-4 treatment, accommodation, product, or service for an injured person
11-5 who is a personal compensation insured if the amount of the payment
11-6 exceeds the amount authorized by this article.
11-7 (b) Payment for a treatment, accommodation, product, or
11-8 service may not exceed the lesser of:
11-9 (1) the provider's usual and customary charge; or
11-10 (2) 110 percent of the fee schedule, prevailing
11-11 charge, recommended fee, inflation index charge, or
11-12 diagnostic-related groups payment that applies to the particular
11-13 specialty service and that was determined to be applicable in this
11-14 state under the Medicare program created under Part A and Part B,
11-15 Title XVII, Social Security Act (42 U.S.C. Section 1395 et seq.)
11-16 for comparable treatments, accommodations, products, or services at
11-17 the time and place the treatments, accommodations, products, or
11-18 services were provided.
11-19 (c) If a fee schedule, prevailing charge, recommended fee,
11-20 inflation index charge, or diagnostic-related groups payment has
11-21 not been computed under the Medicare program for a treatment,
11-22 accommodation, product, or service, the amount of the payment may
11-23 not exceed 80 percent of the provider's usual and customary charge
11-24 for that treatment, accommodation, product, or service.
11-25 (d) This article does not require payment of pass through
11-26 costs.
11-27 Art. 26.36. PAYMENT FOR PRIVATE ROOM EXCLUDED. The medical
12-1 expense benefit under personal compensation coverage does not
12-2 include any portion of a charge for a room in a hospital, clinic,
12-3 convalescent or nursing home, extended care facility, or any
12-4 similar facility in excess of the reasonable and customary charge
12-5 for semi-private accommodations, unless a private accommodation is
12-6 determined to be medically required.
12-7 Art. 26.37. PAYMENT FOR EXPERIMENTAL TREATMENT, SERVICE,
12-8 PRODUCT, OR PROCEDURE EXCLUDED. The medical expense benefit under
12-9 personal compensation coverage does not include payment for a
12-10 treatment, service, product, or procedure that is:
12-11 (1) experimental in nature;
12-12 (2) for research or not primarily designed to serve a
12-13 medical purpose; or
12-14 (3) not commonly and customarily recognized throughout
12-15 the medical profession and within the United States as appropriate
12-16 for treatment of the injury.
12-17 Art. 26.38. MEDICAL EXPENSE BENEFIT; LIMITATION. The
12-18 medical expense benefit under personal compensation coverage is not
12-19 payable for medical expenses that accrue after the second
12-20 anniversary of the date of the accident.
12-21 Art. 26.39. REVIEW OF MEDICAL EXPENSES. A motor vehicle
12-22 insurer may review medical expenses prior to, during, and after the
12-23 course of treatment of an injured person to ensure that the
12-24 expenses are reasonable and necessary.
12-25 Art. 26.40. COMPUTATION OF LOSS OF INCOME BENEFIT;
12-26 LIMITATION. (a) The benefit for loss of income from work under
12-27 personal compensation coverage is equal to 80 percent of the amount
13-1 of income the injured person would have earned through work during
13-2 the period of disability, less:
13-3 (1) income from substitute work actually performed by
13-4 the injured person; or
13-5 (2) income the injured person would have earned in
13-6 available appropriate substitute work which the injured person was
13-7 capable of performing but unreasonably failed to undertake.
13-8 (b) The loss of income from work benefit does not include
13-9 loss that accrues after the death of the injured person.
13-10 (c) The loss of income from work benefit is not payable
13-11 after the second anniversary of the date of the accident.
13-12 Art. 26.41. REPLACEMENT SERVICES BENEFIT; LIMITATION. (a)
13-13 An injured person is not entitled to the benefit for replacement
13-14 services under compensation coverage during a period in which the
13-15 person is receiving the benefit for loss of income from work.
13-16 (b) The replacement services benefit does not include loss
13-17 that accrues after the death of the injured person.
13-18 (c) The replacement services benefit is not payable for loss
13-19 that accrues after the second anniversary of the date of the
13-20 accident.
13-21 Art. 26.42. DEATH BENEFIT; LIMITATION. A death benefit
13-22 under personal compensation coverage may be paid only if the death
13-23 of an injured person occurs before the first anniversary of an
13-24 accidental injury that directly and proximately caused the death.
13-25 SUBCHAPTER D. PAYMENT OF PERSONAL COMPENSATION BENEFITS
13-26 Art. 26.51. PROMPT PAYMENT OF CLAIMS. Article 21.55 of this
13-27 code applies to payment of claims under this chapter.
14-1 Art. 26.52. PERSONS TO WHOM PAYMENT IS MADE. A motor
14-2 vehicle insurer shall pay personal compensation benefits, at the
14-3 option of the insurer, to:
14-4 (1) the injured person;
14-5 (2) the parent or guardian of the injured person, if
14-6 the injured person is a minor or is incompetent;
14-7 (3) a dependent, executor, or administrator of an
14-8 injured person who is deceased; or
14-9 (4) the person or organization rendering the services
14-10 for which payment is due.
14-11 Art. 26.53. VERIFICATION OF ENTITLEMENT TO BENEFITS;
14-12 EMPLOYER'S REPORT. (a) On request of an insurer providing
14-13 benefits under this chapter, an employer shall furnish pertinent
14-14 information regarding an employee who has filed a claim for
14-15 personal compensation benefits.
14-16 (b) Information provided under this article shall be
14-17 provided on a form approved by the commissioner.
14-18 Art. 26.54. VERIFICATION OF ENTITLEMENT TO BENEFITS; MEDICAL
14-19 REPORT; ACCESS TO MEDICAL DOCUMENTS. (a) On the request of an
14-20 insurer providing benefits under this chapter, a physician,
14-21 hospital, clinic, or other health care provider that, before or
14-22 after an accidental injury for which a claim is made, provides
14-23 products, services, treatments, procedures, or accommodations to
14-24 the injured person in relation to any injury, or in relation to a
14-25 condition that the injured person claims is connected with the
14-26 injury, shall furnish a written report to the insurer in accordance
14-27 with this article.
15-1 (b) A report made under this article must include the
15-2 injured person's medical history, condition, and treatment, and the
15-3 dates and costs of the treatment.
15-4 (c) A report made under this article must be accompanied by
15-5 a statement, executed under penalty of perjury, indicating, to the
15-6 best of the knowledge and belief of the person executing the
15-7 statement, whether the treatment or services rendered for the
15-8 accidental injury were reasonable and necessary for the injury and
15-9 identifying the portion of the expenses for the treatment or
15-10 services that was incurred as a result of the accidental injury.
15-11 (d) A physician, hospital, clinic, or other health care
15-12 provider shall promptly produce and permit the inspection and
15-13 copying of its records regarding the injured person's history,
15-14 condition, and treatment, and the dates and costs of treatment or
15-15 services.
15-16 (e) A person may not bring a cause of action against a
15-17 physician, hospital, clinic, or other health care provider for
15-18 complying with the provisions of this article. Section 5.08,
15-19 Medical Practice Act (Article 4495b, Vernon's Texas Civil
15-20 Statutes), does not apply to information provided under this
15-21 article.
15-22 (f) An insurer requesting a report or record under this
15-23 article shall pay all reasonable costs connected with providing the
15-24 report or record.
15-25 (g) This article does not authorize the disclosure of
15-26 information that is confidential under federal law.
15-27 SUBCHAPTER E. COORDINATION OF COVERAGE AND BENEFITS
16-1 Art. 26.61. PRIORITY FOR PAYMENT OF BENEFITS. (a) A person
16-2 who is entitled to personal compensation benefits is entitled to at
16-3 least the personal compensation coverage under a policy in which
16-4 the person is a named insured or the resident relative of a named
16-5 insured. The motor vehicle insurer shall pay personal compensation
16-6 benefits for the claims of the named insured or a resident relative
16-7 of the named insured before paying other claims arising from an
16-8 accident.
16-9 (b) If the limits of the personal compensation benefits for
16-10 the accident are not exhausted after payment of claims under
16-11 Subsection (a) of this article, the insurer shall pay personal
16-12 compensation benefits for the claims of other personal compensation
16-13 insureds.
16-14 (c) If more than one motor vehicle insurer is obligated to
16-15 pay personal compensation benefits, the insurer against whom the
16-16 claim is first made shall pay the claim. That insurer may recover
16-17 a pro rata contribution for the payment and processing of the claim
16-18 from any other motor vehicle insurer obligated to pay the benefits.
16-19 In recovering a contribution under this subsection, the insurer has
16-20 the same priority as the injured person would have had under this
16-21 article.
16-22 Art. 26.62. PARKED VEHICLES; EXCLUSION. For purposes of
16-23 determining whether a motor vehicle insurance policy provides
16-24 coverage for a personal compensation insured other than the named
16-25 insured or a resident relative of a named insured for a particular
16-26 accident, a motor vehicle described by the policy is not involved
16-27 in the accident if the vehicle is parked and unoccupied during the
17-1 accident, unless the manner in which the vehicle is parked causes
17-2 an unreasonable risk of injury.
17-3 Art. 26.63. MULTIPLE COVERAGES. (a) The policy limit for a
17-4 coverage or benefit under a personal compensation insurance policy
17-5 may not be added to, combined with, or otherwise stacked on the
17-6 policy limit for any other coverage or benefit provided under that
17-7 policy or another policy to determine the total limit of coverage
17-8 available to an injured person for an accident. This subsection
17-9 applies notwithstanding the number of:
17-10 (1) motor vehicles involved in the accident;
17-11 (2) personal compensation insureds;
17-12 (3) claims made for the accident;
17-13 (4) motor vehicles or premiums shown on the policies;
17-14 or
17-15 (5) premiums paid.
17-16 (b) A policy may provide that if two or more policies apply
17-17 to the same accident, the highest policy limit for a coverage or
17-18 benefit applicable to the accident is the policy limit for that
17-19 coverage or benefit in the policy that provides the highest limit
17-20 for that coverage or benefit.
17-21 Art. 26.64. COLLATERAL SOURCES OF BENEFITS. (a) A motor
17-22 vehicle insurer shall pay personal compensation benefits to a
17-23 personal compensation insured, notwithstanding coverage other than
17-24 personal compensation coverage that provides benefits for the same
17-25 injury, except as provided by Subsection (b) of this article.
17-26 (b) The amount of personal compensation benefits is reduced
17-27 by the amount of a benefit paid under the Texas Workers'
18-1 Compensation Act (Article 8308-1.01 et seq., Vernon's Texas Civil
18-2 Statutes) or under Chapter 502, Acts of the 45th Legislature,
18-3 Regular Session, 1937 (Article 6674s, Vernon's Texas Civil
18-4 Statutes), Chapter 229, Acts of the 50th Legislature, Regular
18-5 Session, 1947 (Article 8309b, Vernon's Texas Civil Statutes), or
18-6 Chapter 310, Acts of the 52nd Legislature, Regular Session, 1951
18-7 (Article 8309d, Vernon's Texas Civil Statutes).
18-8 (c) Except as provided by Subsection (b) of this article,
18-9 coverage other than personal compensation coverage is excess
18-10 coverage for any accidental injury covered by a personal
18-11 compensation insurance policy.
18-12 SUBCHAPTER F. COST CONTAINMENT
18-13 Art. 26.71. MANAGED CARE. (a) Except as provided by
18-14 Subsection (b) of this article, a motor vehicle insurer may use a
18-15 managed care system to pay for medical expense benefits or may
18-16 require a personal compensation insured to obtain health care
18-17 through a managed care system designed by the insurer if:
18-18 (1) the commissioner approves the use of the managed
18-19 care system;
18-20 (2) the named insured elected to be subject to a
18-21 managed care system at the time the policy was purchased; and
18-22 (3) the policy premium is reduced in accordance with
18-23 rules adopted by the board.
18-24 (b) A motor vehicle insurer may not require a personal
18-25 compensation insured other than the named insured or a resident
18-26 relative of the named insured to obtain health care through a
18-27 managed care system.
19-1 (c) For purposes of this article, "managed care system"
19-2 includes a health maintenance or preferred provider organization.
19-3 Art. 26.72. PEER REVIEW OF HEALTH CARE. Each motor vehicle
19-4 insurer may contract with a peer review organization to evaluate
19-5 treatments, accommodations, products, and services provided to
19-6 injured persons to confirm that the treatments, accommodations,
19-7 products, and services conform to professional standards of
19-8 performance, are medically necessary, and that payments made for
19-9 the treatment, accommodations, products, or services conform to
19-10 this chapter.
19-11 Art. 26.73. SAFETY EQUIPMENT. Each motor vehicle insurer
19-12 may adopt an actuarially sound program that provides incentives, in
19-13 the form of increased benefits, reduced premiums, or other means,
19-14 for insureds to install, maintain, and use injury reducing devices,
19-15 including seat and harness belts, air bags, and child restraint
19-16 systems.
19-17 SUBCHAPTER G. RIGHTS AND DUTIES OF PERSONAL COMPENSATION
19-18 INSUREDS
19-19 Art. 26.81. ASSIGNMENT OR GARNISHMENT OF PERSONAL
19-20 COMPENSATION BENEFITS. (a) Personal compensation benefits, other
19-21 than those for medical expenses, are exempt from garnishment,
19-22 attachment, execution, and any other process or claim to the same
19-23 extent that wages or earnings are exempt under law.
19-24 (b) An agreement to assign a right to a personal
19-25 compensation benefit, other than a medical benefit, that is payable
19-26 in the future is unenforceable except to the extent that:
19-27 (1) the assignment compensates the assignee for a
20-1 product, service, or accommodation provided or to be provided by
20-2 the assignee; or
20-3 (2) the assignment is of benefits for loss of income
20-4 from work or replacement services and is assigned to pay alimony,
20-5 spousal maintenance, or child support.
20-6 Art. 26.82. CANCELLATION, NONRENEWAL, OR PREMIUM INCREASE
20-7 FOLLOWING CLAIM. (a) A motor vehicle insurer may not cancel,
20-8 refuse to renew, or increase the premium for a personal
20-9 compensation insurance policy because of a claim for personal
20-10 compensation benefits if a personal compensation insured was not at
20-11 fault in the accident from which the claim arose.
20-12 (b) A person may not bring a civil action for equitable
20-13 relief from or civil damages for a violation of this article.
20-14 Art. 26.83. ACTION FOR BENEFITS. Unless arbitration is
20-15 elected under Article 26.04 of this code, a person must bring an
20-16 action against a motor vehicle insurer for unpaid personal
20-17 compensation benefits:
20-18 (1) not later than the second anniversary of the date
20-19 that the accidental injury occurred; or
20-20 (2) if some benefits have been paid, not later than
20-21 the second anniversary of the date of the last payment of benefits.
20-22 Art. 26.84. MENTAL AND PHYSICAL EXAMINATIONS. (a) If the
20-23 mental or physical condition of an injured person is material to a
20-24 claim that has been made or may be made for personal compensation
20-25 benefits, the injured person shall submit to reasonable mental or
20-26 physical examinations by a physician or physicians designated by
20-27 the motor vehicle insurer at a reasonably convenient time and
21-1 location, subject to regulations adopted by the commissioner.
21-2 (b) A personal compensation insurance policy may include a
21-3 provision stating the substance of Subsection (a) of this article.
21-4 Art. 26.85. MEDICAL OR REHABILITATION SERVICES. A motor
21-5 vehicle insurer may suspend payment of future benefits to an
21-6 injured person if:
21-7 (1) the insurer has requested that the person submit
21-8 to medical or rehabilitation services; and
21-9 (2) the person unreasonably refuses to submit to the
21-10 services.
21-11 SUBCHAPTER H. FRAUDULENT CLAIMS
21-12 Art. 26.91. FRAUDULENT CLAIMS. A person may not:
21-13 (1) present or cause to be presented, or conspire to
21-14 present or cause to be presented, a statement in connection with a
21-15 claim for a personal compensation benefit that the person knows
21-16 contains false, incomplete, or misleading information concerning a
21-17 matter that is material to the claim; or
21-18 (2) prepare or make a statement that the person
21-19 intends to be presented to another person in connection with a
21-20 claim for a personal compensation benefit that the person knows
21-21 contains false, incomplete, or misleading information concerning a
21-22 matter that is material to the claim.
21-23 Art. 26.92. CRIMINAL OFFENSE. (a) A person commits an
21-24 offense if the person violates Article 26.91 of this code with the
21-25 intent to injure, defraud, or deceive another person.
21-26 (b) An offense under this article is punishable by a fine of
21-27 not more than $10,000.
22-1 Art. 26.93. CIVIL RECOVERY. (a) A person who has been
22-2 injured by a violation of Article 26.91 of this code may bring an
22-3 action to recover damages against the person who committed the
22-4 violation.
22-5 (b) If a person violates Article 26.91 of this code with the
22-6 intent to injure, defraud, or deceive another person, a person who
22-7 has been injured by the violation may recover:
22-8 (1) actual damages;
22-9 (2) a penalty not to exceed twice the amount of actual
22-10 damages; and
22-11 (3) costs and attorney's fees incurred in bringing the
22-12 action.
22-13 SUBCHAPTER I. TORT LIABILITY
22-14 Art. 26.101. TORT ACTION LIMITED. (a) Except as provided
22-15 by this subchapter, a person may not recover damages for an
22-16 accidental injury arising, in whole or in part, out of the use of a
22-17 motor vehicle in this state.
22-18 (b) Except as provided by this subchapter, any person
22-19 involved in a motor vehicle accident in this state is subject to
22-20 the tort and liability limitations of this subchapter.
22-21 (c) This subchapter applies only to a claim for damages for
22-22 economic or noneconomic loss resulting from an accidental injury
22-23 caused by the negligent conduct or intentional misconduct of
22-24 another person, including a claim for loss of consortium or
22-25 companionship and any other claim brought by a person other than
22-26 the injured person.
22-27 (d) This subchapter applies to a claim made against a person
23-1 who, in the absence of this subchapter, would be vicariously liable
23-2 for the negligent conduct or intentional misconduct of another
23-3 person.
23-4 Art. 26.102. OWNER OF UNINSURED MOTOR VEHICLE.
23-5 Notwithstanding Articles 26.103 and 26.104 of this code, the owner
23-6 of an uninsured motor vehicle may not recover damages for loss
23-7 arising out of the use of the vehicle if personal compensation
23-8 benefits would have been provided had the owner complied with the
23-9 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
23-10 Vernon's Texas Civil Statutes).
23-11 Art. 26.103. UNCOMPENSATED ECONOMIC LOSS. (a) A person may
23-12 bring a cause of action to recover damages for uncompensated
23-13 economic loss arising, in whole or in part, out of the use of a
23-14 motor vehicle.
23-15 (b) In this article, "uncompensated economic loss" means the
23-16 portion of economic loss arising out of an accidental injury that
23-17 exceeds the sum of the personal compensation benefits that the
23-18 injured person is entitled to receive and benefits paid by persons
23-19 who are collateral sources for the purposes of Article 26.64 of
23-20 this code. The term does not include the amount of any deductible
23-21 under a personal compensation insurance policy.
23-22 Art. 26.104. MISCONDUCT. (a) A person may bring a cause of
23-23 action to recover damages for accidental injury against a person
23-24 who:
23-25 (1) caused the injury; and
23-26 (2) is convicted, in connection with the accident, of
23-27 a felony or an offense under Article 6701l-1, Revised Statutes, or
24-1 under Section 19.05(a)(2), Penal Code.
24-2 (b) A person who provides personal compensation benefits or
24-3 provides benefits as a collateral source under Article 26.64 of
24-4 this code is subrogated to the claim of the injured person against
24-5 the convicted person.
24-6 (c) An insurance policy, including a policy that provides
24-7 liability coverage or uninsured motorist insurance, may not provide
24-8 liability coverage for damages recovered under this article.
24-9 Art. 26.105. SERIOUS INJURY. (a) A person may bring a
24-10 cause of action for a serious injury arising, in whole or in part,
24-11 out of the use of a motor vehicle.
24-12 (b) In an action in which the defendant contends that the
24-13 injured person's injury is not a serious injury, either party may
24-14 file a motion seeking summary judgment on that issue. If there is
24-15 not a material issue of fact regarding the nature of the injury or
24-16 its effect on the injured person, the court shall decide whether
24-17 the injury is a serious injury and shall render summary judgment.
24-18 (c) The trial of any case in which a motion is filed under
24-19 Subsection (b) of this article may not begin until the 30th day
24-20 after the date on which the court makes a determination on the
24-21 motion. The court shall order a continuance of the case if
24-22 necessary to comply with this subsection.
24-23 (d) If the court renders summary judgment on a motion filed
24-24 under Subsection (b) of this article and finds that the party
24-25 against whom judgment is rendered did not have a reasonable basis
24-26 for its position, the court shall assess against that party
24-27 reasonable costs and attorney's fees, based on actual time,
25-1 incurred by the prevailing party to obtain the judgment.
25-2 (e) On motion of the defendant in an action tried to a jury
25-3 in which there is a material issue of fact as to whether the
25-4 injured person's injury is a serious injury, that issue shall be
25-5 separately tried and other evidence as to the plaintiff's
25-6 noneconomic loss may not be presented to the jury until that issue
25-7 has been resolved. After resolution of that issue, the amount of
25-8 the injured person's noneconomic loss may be tried before the same
25-9 jury or a different jury, as the court may in its discretion
25-10 decide.
25-11 (f) In this article:
25-12 (1) "Defendant" means a person from whom damages are
25-13 sought for an accidental injury arising, in whole or in part, out
25-14 of the use of a motor vehicle, including a counterdefendant,
25-15 cross-defendant, or third-party defendant.
25-16 (2) "Serious injury" means an accidental injury that
25-17 results in death, dismemberment, a significant and permanent loss
25-18 of an important body function caused by a continuing physical
25-19 injury, or significant and permanent disfigurement that is usually
25-20 visible while the injured person is clothed. The term does not
25-21 include a soft tissue injury.
25-22 Art. 26.106. INSURER'S RIGHT OF SUBROGATION. (a) A motor
25-23 vehicle insurer does not have a right to subrogation for personal
25-24 compensation benefits except as provided by this article and
25-25 Article 26.104 of this code.
25-26 (b) A motor vehicle insurer is subrogated, to the extent of
25-27 its obligation to pay personal compensation benefits, to a personal
26-1 compensation insured's rights under Article 26.104 of this code and
26-2 against any person who is not affected by the limitations on tort
26-3 rights and liabilities under this subchapter.
26-4 Art. 26.107. EFFECT OF CLAIM FOR DAMAGES ON PAYMENT OF
26-5 COMPENSATION BENEFITS. (a) Except as provided by this article, a
26-6 motor vehicle insurer shall pay personal compensation due
26-7 regardless of the value of a claim for damages for the accidental
26-8 injury.
26-9 (b) After recovery under a claim for damages is realized, a
26-10 motor vehicle insurer may subtract the amount of the net recovery
26-11 from the total amount of personal compensation to be paid.
26-12 (c) If payment under the personal compensation insurance
26-13 policy has already been made, the recipient of the payment shall
26-14 repay to the insurer an amount equal to the payment received, not
26-15 to exceed the amount of the net recovery. The insurer has a lien
26-16 on the recovery to the extent of the amount owed to the insurer
26-17 under this subsection.
26-18 (d) If the amount of the recovery exceeds the amount of
26-19 personal compensation benefits paid or owed by the insurer at the
26-20 time of the recovery, but the insurer is obligated to pay personal
26-21 compensation benefits in the future, the remaining amount of the
26-22 net recovery shall be subtracted from the benefits to be paid as
26-23 they become due until the amount of the recovery is exhausted. The
26-24 insurer shall reinstate payment of benefits at the time the amount
26-25 of the recovery is exhausted.
26-26 (e) In this article, "net recovery" means the amount
26-27 recovered under the claim for damages, less reasonable attorney's
27-1 fees and other reasonable expenses incurred in obtaining the
27-2 recovery.
27-3 SECTION 2. Articles 5.01(b) and (e), Insurance Code, are
27-4 amended to read as follows:
27-5 (b) The Board shall have the sole and exclusive power and
27-6 authority, and it shall be its duty to determine, fix, prescribe,
27-7 and promulgate just, reasonable and adequate rates of premiums to
27-8 be charged and collected by all insurers writing any form of
27-9 insurance on motor vehicles in this State, including insurance
27-10 providing personal compensation coverage under Chapter 26 of this
27-11 code and its subsequent amendments, fleet or other rating plans
27-12 designed to discourage losses from fire and theft and similar
27-13 hazards, and any rating plans designed to encourage the prevention
27-14 of accidents. In promulgating any such rating plans the Board
27-15 shall give due consideration to the peculiar hazards and experience
27-16 of individual risks, past and prospective, within and outside the
27-17 State and to all other relevant factors, within and outside the
27-18 State. The Board shall have the authority also to alter or amend
27-19 any and all of such rates of premiums so fixed and determined and
27-20 adopted by it, and to raise or lower the same or any part thereof.
27-21 (e) Motor vehicle or automobile insurance as referred to in
27-22 this subchapter shall be taken and construed to mean insurance
27-23 providing personal compensation coverage under Chapter 26 of this
27-24 code and its subsequent amendments and every form of insurance on
27-25 any automobile or other vehicle hereinafter enumerated and its
27-26 operating equipment or necessitated by reason of the liability
27-27 imposed by law for damages arising out of the ownership, operation,
28-1 maintenance, or use in this State of any automobile, motorcycle,
28-2 motorbicycle, truck, truck-tractor, tractor, traction engine, or
28-3 any other self-propelled vehicle, and including also every vehicle,
28-4 trailer or semi-trailer pulled or towed by a motor vehicle, but
28-5 excluding every motor vehicle running only upon fixed rails or
28-6 tracks. Workers' Compensation Insurance is excluded from the
28-7 foregoing definition.
28-8 SECTION 3. Article 5.06(1), Insurance Code, is amended to
28-9 read as follows:
28-10 (1) The Board shall adopt a policy form and endorsements for
28-11 each type of motor vehicle insurance subject to this subchapter.
28-12 The coverage provided by a policy form adopted under this
28-13 subsection is the minimum coverage that may be provided under an
28-14 insurance policy for that type of insurance in this State. <Each
28-15 policy form must provide the coverages mandated under Articles
28-16 5.06-1 and 5.06-3 of this code, except that the coverages may be
28-17 rejected by the named insured as provided by those articles.>
28-18 SECTION 4. Article 5.06-6, Insurance Code, is amended to
28-19 read as follows:
28-20 Art. 5.06-6. COVERAGES FOR SPOUSES AND FORMER SPOUSES. A
28-21 personal automobile policy or any similar policy form adopted or
28-22 approved by the State Board of Insurance under Article 5.06 of this
28-23 code and its subsequent amendments that provides coverage for an
28-24 injury <covers liability> arising out of ownership, maintenance, or
28-25 use of a motor vehicle of a spouse, who is otherwise insured by the
28-26 policy, shall contain a provision to continue coverage for the
28-27 spouse during a period of separation in contemplation of divorce.
29-1 SECTION 5. Section 1(a), Article 5.101, Insurance Code, is
29-2 amended to read as follows:
29-3 (a) The pilot program on flexible rating is created to help
29-4 stabilize the rates charged for insurance in all lines of <property
29-5 and casualty> insurance covered by Subchapters A through L of this
29-6 chapter, except ocean marine insurance, inland marine insurance,
29-7 fidelity, surety and guaranty bond insurance, errors and omissions
29-8 insurance, directors' and officers' liability insurance, general
29-9 liability insurance, commercial property insurance, workers'
29-10 compensation insurance, professional liability insurance for
29-11 physicians and health care providers as defined in Article 5.15-1
29-12 of this code, and attorney's professional liability insurance.
29-13 SECTION 6. Section 1, Texas Motor Vehicle
29-14 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
29-15 Statutes), is amended to read as follows:
29-16 Sec. 1. The following words and phrases, when used in this
29-17 Act, shall, for the purposes of this Act, have the meanings
29-18 respectively ascribed to them in this section, except in those
29-19 instances where the context clearly indicates a different meaning:
29-20 1. "Highway" means the entire width between property
29-21 lines of any road, street, way, thoroughfare, or bridge in the
29-22 State of Texas not privately owned or controlled, when any part
29-23 thereof is open to the public for vehicular traffic and over which
29-24 the State has legislative jurisdiction under its police power.
29-25 2. "Judgment"--Any judgment which shall have become
29-26 final by expiration without appeal of the time within which an
29-27 appeal might have been perfected, or by final affirmation on
30-1 appeal, rendered by a court of competent jurisdiction of any state
30-2 or of the United States, upon a cause of action arising out of the
30-3 ownership, maintenance or use of any motor vehicle, for damages,
30-4 including damages for care and loss of services, because of bodily
30-5 injury to or death of any person, or for damages because of injury
30-6 to or destruction of property, including the loss of use thereof,
30-7 or upon a cause of action on an agreement of settlement for such
30-8 damages.
30-9 3. "Motor Vehicle"--Every self-propelled vehicle which
30-10 is designed for use upon a highway, including trailers and
30-11 semitrailers designed for use with such vehicles (except traction
30-12 engines, road rollers and graders, tractor cranes, power shovels,
30-13 well drillers and implements of husbandry) and every vehicle which
30-14 is propelled by electric power obtained from overhead wires but not
30-15 operated upon rails.
30-16 4. "License"--Any driver's, operator's, commercial
30-17 operator's, or chauffeur's license, temporary instruction permit or
30-18 temporary license, or restricted license, issued under Article
30-19 6687b, Texas Revised Civil Statutes, pertaining to the licensing of
30-20 persons to operate motor vehicles.
30-21 5. "Nonresident"--Every person who is not a resident
30-22 of the State of Texas.
30-23 6. "Nonresident's Operating Privilege"--The privilege
30-24 conferred upon a nonresident by the laws of Texas pertaining to the
30-25 operation by him of a motor vehicle, or the use of a motor vehicle
30-26 owned by him, in the State of Texas.
30-27 7. "Operator"--Every person who is in actual physical
31-1 control of a motor vehicle.
31-2 8. "Owner"--A person who holds the legal title of a
31-3 motor vehicle, or in the event a motor vehicle is the subject of an
31-4 agreement for the conditional sale or lease thereof with the right
31-5 of purchase upon performance of the conditions stated in the
31-6 agreement and with an immediate right of possession vested in the
31-7 conditional vendee or lessee or in the event a mortgagor of a
31-8 vehicle is entitled to possession, then such conditional vendee or
31-9 lessee or mortgagor shall be deemed the owner for the purposes of
31-10 this Act.
31-11 9. "Person"--Every natural person, firm,
31-12 copartnership, association or corporation.
31-13 10. "Proof of Financial Responsibility" means evidence
31-14 of compliance with or exemption from Section 1A of this Act and
31-15 includes any document that may be furnished to a peace officer or
31-16 person involved in an accident in compliance with Section 1B of
31-17 this Act.<--Proof of ability to respond in damages for liability,
31-18 on account of accidents occurring subsequent to the effective date
31-19 of said proof, arising out of the ownership, maintenance or use of
31-20 a motor vehicle, in the following amounts: effective January 1,
31-21 1984, Fifteen Thousand Dollars ($15,000) because of bodily injury
31-22 to or death of one person in any one accident, and, subject to said
31-23 limit for one person, Thirty Thousand Dollars ($30,000) because of
31-24 bodily injury to or death of two (2) or more persons in any one
31-25 accident, and Fifteen Thousand Dollars ($15,000) because of injury
31-26 to or destruction of property of others in any one accident and
31-27 effective January 1, 1986, Twenty Thousand Dollars ($20,000)
32-1 because of bodily injury to or death of one person in any one
32-2 accident, and, subject to said limit for one person, Forty Thousand
32-3 Dollars ($40,000) because of bodily injury to or death of two (2)
32-4 or more persons in any one accident, and Fifteen Thousand Dollars
32-5 ($15,000) because of injury to or destruction of property of others
32-6 in any one accident. The proof of ability to respond in damages
32-7 may exclude the first Two Hundred Fifty Dollars ($250) of liability
32-8 for bodily injury to or death of any one person in any one
32-9 accident, and, subject to that exclusion for one person, may
32-10 exclude the first Five Hundred Dollars ($500) of liability for the
32-11 bodily injury to or death of two (2) or more persons in any one
32-12 accident and may exclude the first Two Hundred Fifty Dollars ($250)
32-13 of liability for the injury to or destruction of property of others
32-14 in any one accident.>
32-15 11. "Registration"--Registration or license
32-16 certificate or license receipt or dealer's license and registration
32-17 or number plates issued under Article 6675a or Article 6686, Texas
32-18 Revised Civil Statutes, and its subsequent amendments, pertaining
32-19 to the registration of motor vehicles.
32-20 12. "Department" means the Department of Public Safety
32-21 of the State of Texas, acting directly or through its authorized
32-22 officers and agents, except in such sections of this Act in which
32-23 some other State Department is specifically named.
32-24 13. "State"--Any state, territory or possession of the
32-25 United States, the District of Columbia, or any province of the
32-26 Dominion of Canada.
32-27 14. "Volunteer Fire Department" means a company,
33-1 department, or association whose members receive no or nominal
33-2 compensation and that is organized in an unincorporated area for
33-3 the purpose of answering fire alarms and extinguishing fires or
33-4 answering fire alarms, extinguishing fires, and providing emergency
33-5 medical services.
33-6 SECTION 7. Sections 1A(a), (b), and (d), Texas Motor Vehicle
33-7 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
33-8 Statutes), are amended to read as follows:
33-9 (a) On and after January 1, 1982, no motor vehicle may be
33-10 operated in this State unless a policy of motor vehicle <automobile
33-11 liability> insurance that complies with Section 1A-1 of <in at
33-12 least the minimum amounts to provide evidence of financial
33-13 responsibility under> this Act is in effect to insure against
33-14 potential losses which may arise out of the operation of that
33-15 vehicle.
33-16 (b) The following vehicles are exempt from the requirement
33-17 of Subsection (a) of this section:
33-18 (1) vehicles exempt by Section 33 of this Act;
33-19 (2) any vehicles for which the title is held in the
33-20 name of a volunteer fire department;
33-21 (3) <vehicles for which a bond is on file with the
33-22 Department as provided by Section 24 of this Act, or for which a
33-23 certificate has been obtained from the State Treasurer stating that
33-24 the owner and/or operator has deposited with the State Treasurer
33-25 Fifty-Five Thousand Dollars ($55,000) in cash or securities as
33-26 provided by Section 25 of this Act. Such bond or deposit may be
33-27 filed in lieu of carrying automobile liability insurance where
34-1 proof is required;>
34-2 <(4)> vehicles that are self-insured under Section 34
34-3 of this Act; and
34-4 (4) <(5)> implements of husbandry<; and>
34-5 <(6) vehicles for which a valid certificate certifying
34-6 that cash or a cashier's check in the amount of at least Fifty-Five
34-7 Thousand Dollars ($55,000) is deposited with the county judge of
34-8 the county in which the vehicle is registered has been:>
34-9 <(A) issued by the county judge and acknowledged
34-10 by the sheriff of that county; and>
34-11 <(B) filed with the Department>.
34-12 (d) Subsection (b) of this section may not be construed to
34-13 exempt a person who is operating a vehicle for which title is held
34-14 in the name of a volunteer fire department from the <liability>
34-15 insurance requirements of this Act.
34-16 SECTION 8. The Texas Motor Vehicle Safety-Responsibility Act
34-17 (Article 6701h, Vernon's Texas Civil Statutes) is amended by adding
34-18 Section 1A-1 to read as follows:
34-19 Sec. 1A-1. The owner or operator of a motor vehicle may
34-20 satisfy the financial responsibility requirement of this Act with a
34-21 motor vehicle insurance policy providing at least:
34-22 (1) basic personal compensation coverage in accordance
34-23 with Chapter 26, Insurance Code, and its subsequent amendments; and
34-24 (2) insurance covering the liability of the owner or
34-25 operator for liability for injury to or destruction of the property
34-26 of others arising out of the operation or use of the motor vehicle
34-27 in the amount of $15,000 for any one accident, subject to a
35-1 deductible not to exceed $250.
35-2 SECTION 9. Section 1B(a), Texas Motor Vehicle
35-3 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
35-4 Statutes), is amended to read as follows:
35-5 (a) As a condition of operating a motor vehicle in this
35-6 state, the operator of the motor vehicle shall furnish, on request
35-7 of a peace officer or a person involved in an accident with the
35-8 operator:
35-9 (1) an <a liability> insurance policy that complies
35-10 with Section 1A-1 of <in at least the minimum amounts required by>
35-11 this Act, or a photocopy of that policy, that covers the vehicle;
35-12 (2) a standard proof of <liability> insurance form
35-13 promulgated by the Texas Department of Insurance and issued by an
35-14 <a liability> insurer that:
35-15 (A) includes the name of the insurer;
35-16 (B) includes the insurance policy number;
35-17 (C) includes the policy period;
35-18 (D) includes the name and address of each
35-19 insured;
35-20 (E) includes the policy limits or a statement
35-21 that the coverage of the policy complies with Section 1A-1 of <at
35-22 least the minimum amounts of liability insurance required by> this
35-23 Act; and
35-24 (F) includes the make and model of each covered
35-25 vehicle;
35-26 (3) an insurance binder that confirms that the
35-27 operator is in compliance with this Act; or
36-1 (4) a certificate or copy of a certificate issued by
36-2 the department that shows the vehicle is covered by
36-3 self-insurance<;>
36-4 <(5) a certificate issued by the state treasurer that
36-5 shows that the owner of the vehicle has on deposit with the
36-6 treasurer money or securities in at least the amount required by
36-7 Section 25 of this Act;>
36-8 <(6) a certificate issued by the department that shows
36-9 that the vehicle is a vehicle for which a bond is on file with the
36-10 department as provided by Section 24 of this Act; or>
36-11 <(7) a copy of a certificate issued by the county
36-12 judge of a county in which the vehicle is registered that shows
36-13 that the owner of the vehicle has on deposit with the county judge
36-14 cash or a cashier's check in at least the amount required by
36-15 Section 1A(b)(6) of this Act>.
36-16 SECTION 10. Sections 1D and 1E, Texas Motor Vehicle
36-17 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
36-18 Statutes), are amended to read as follows:
36-19 Sec. 1D. It is a defense to prosecution under this Act if
36-20 the person charged produces in court an <automobile liability>
36-21 insurance policy that complies with Section 1A-1 of this Act or a
36-22 certificate of self-insurance previously issued to that person that
36-23 was valid at the time that the offense is alleged to have occurred
36-24 and the charge shall be dismissed.
36-25 Sec. 1E. When notified of an accident by the Department in
36-26 which an owner or operator has reported evidence of financial
36-27 responsibility with an insurance company, the insurance company so
37-1 notified shall be required to respond to the Department only if
37-2 there is not a policy of <liability> insurance that complies with
37-3 Section 1A-1 of this Act in effect, as reported.
37-4 SECTION 11. Sections 1F(a) and (f), Texas Motor Vehicle
37-5 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
37-6 Statutes), are amended to read as follows:
37-7 (a) The department shall suspend the driver's license and
37-8 motor vehicle registration of a person convicted of an offense
37-9 under Section 1C(a) of this Act, if a prior conviction of the
37-10 person under Section 1C(a) of this Act has been previously reported
37-11 to the department by a magistrate or the judge or clerk of a court,
37-12 unless the person establishes and maintains proof of financial
37-13 responsibility for two years from the date of the second or
37-14 subsequent conviction. The requirement for filing proof of
37-15 financial responsibility may be waived if satisfactory evidence is
37-16 filed with the Department that the party convicted was at the time
37-17 of arrest covered by a policy of <liability> insurance that
37-18 complies with Section 1A-1 of this Act or was otherwise exempt as
37-19 provided in Section 1A(b) of this Act.
37-20 (f) The following evidence of financial responsibility or a
37-21 photocopy of the evidence satisfies the requirement of Subsection
37-22 (e) of this section:
37-23 (1) an <a liability> insurance policy that complies
37-24 with Section 1A-1 of <in at least the minimum amounts required by>
37-25 this Act to provide proof of financial responsibility covering at
37-26 least the period required by Subsection (e) of this section;
37-27 (2) a standard proof of <liability> insurance form
38-1 promulgated by the Texas Department of Insurance and issued by an
38-2 <a liability> insurer that includes:
38-3 (A) the name of the insurer;
38-4 (B) the insurance policy number;
38-5 (C) the policy period, which must equal or
38-6 exceed the period required by Subsection (e) of this section;
38-7 (D) the name and address of each insured; and
38-8 (E) the policy limits or a statement that the
38-9 coverage of the policy complies with Section 1A-1 of <at least the
38-10 minimum amounts of liability insurance required by> this Act;
38-11 (3) an insurance binder that confirms to the
38-12 satisfaction of the court that the defendant is in compliance with
38-13 this Act for at least the period required by Subsection (e) of this
38-14 section; or
38-15 (4) a copy of a certificate issued by the Department
38-16 of Public Safety that shows that the vehicle to be registered is
38-17 covered by self-insurance<;>
38-18 <(5) a certificate issued by the state treasurer that
38-19 shows that the owner of the vehicle has on deposit with the
38-20 treasurer money or securities in at least the amount required by
38-21 Section 25 of this Act;>
38-22 <(6) a certificate issued by the Department that shows
38-23 that the vehicle is a vehicle for which a bond is on file with the
38-24 Department as provided by Section 24 of this Act; or>
38-25 <(7) a copy of a certificate issued by the county
38-26 judge of a county in which the vehicle is registered that shows
38-27 that the owner of the vehicle has on deposit with the county judge
39-1 cash or a cashier's check in at least the amount required by
39-2 Section 1A(b)(6) of this Act>.
39-3 SECTION 12. Section 5(c), Texas Motor Vehicle
39-4 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
39-5 Statutes), is amended to read as follows:
39-6 (c) This section shall not apply under the conditions stated
39-7 in Section 6 nor:
39-8 1. To a motor vehicle operator or owner against whom
39-9 the Department or a person presiding at a hearing finds there is
39-10 not a reasonable probability of a judgment being rendered as a
39-11 result of the accident;
39-12 2. To such operator or owner if such owner had in
39-13 effect at the time of such accident a motor vehicle insurance
39-14 <liability> policy with respect to the motor vehicle involved in
39-15 such accident;
39-16 3. To such operator, if not the owner of such motor
39-17 vehicle, if there was in effect at the time of such accident a
39-18 motor vehicle insurance <liability> policy <or bond> with respect
39-19 to his operation of motor vehicles not owned by him;
39-20 4. To any person employed by the government of the
39-21 United States, when such person is acting within the scope or
39-22 office of his employment;
39-23 5. To such operator or owner if the liability of such
39-24 operator or owner for damages resulting from such accident is, in
39-25 the judgment of the Department, covered by any other form of
39-26 liability insurance policy or bond; nor
39-27 6. To any person qualifying as a self-insurer under
40-1 Section 34 of this Act, or to any person operating a motor vehicle
40-2 for such self-insurer.
40-3 No such policy or bond shall be effective under this section
40-4 or under Section 7 unless issued by an insurance company or surety
40-5 company authorized to write motor vehicle <liability> insurance in
40-6 this State, except that if such motor vehicle was not registered in
40-7 this State, or was a motor vehicle which was registered elsewhere
40-8 than in this State at the effective date of the policy, or the most
40-9 recent renewal thereof, such policy or bond shall not be effective
40-10 under this section unless the insurance company or surety company
40-11 if not authorized to do business in this State shall execute a
40-12 power of attorney authorizing the Department to accept service on
40-13 its behalf of notice or process in any action upon such policy or
40-14 bond arising out of such accident. The policy or bond must provide
40-15 coverage at least equivalent to that required under Section 1A-1 of
40-16 this Act<; providing, however, every such policy or bond is
40-17 subject, if the accident has resulted in bodily injury or death, to
40-18 a limit, exclusive of interest and costs, as follows: effective
40-19 January 1, 1984, not less than Fifteen Thousand Dollars ($15,000)
40-20 because of bodily injury to or death of one person in any one
40-21 accident and, subject to said limit for one person, to a limit of
40-22 not less than Thirty Thousand Dollars ($30,000) because of bodily
40-23 injury to or death of two (2) or more persons in any one accident,
40-24 and, if the accident has resulted in injury to or destruction of
40-25 property, to a limit of not less than Fifteen Thousand Dollars
40-26 ($15,000) because of injury to or destruction of property of others
40-27 in any one accident and effective January 1, 1986, not less than
41-1 Twenty Thousand Dollars ($20,000) because of bodily injury to or
41-2 death of one person in any one accident, and, subject to said limit
41-3 for one person, to a limit of not less than Forty Thousand Dollars
41-4 ($40,000) because of bodily injury to or death of two (2) or more
41-5 persons in any one accident, and, if the accident has resulted in
41-6 injury to or destruction of property, to a limit of not less than
41-7 Fifteen Thousand Dollars ($15,000) because of injury to or
41-8 destruction of property of others in any one accident. The policy
41-9 or bond may exclude coverage of the first Two Hundred Fifty Dollars
41-10 ($250) of liability for bodily injury to or death of any one person
41-11 in any one accident, and, subject to that exclusion for one person,
41-12 may exclude coverage for the first Five Hundred Dollars ($500) of
41-13 liability for the bodily injury to or death of two (2) or more
41-14 persons in any one accident and may exclude coverage for the first
41-15 Two Hundred Fifty Dollars ($250) of liability for the injury to or
41-16 destruction of property of others in any one accident>.
41-17 7. Wherever the word "bond" appears in this section or
41-18 this Act, it shall mean a bond filed with and approved by the
41-19 Department of Public Safety.
41-20 SECTION 13. Section 8(c), Texas Motor Vehicle
41-21 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
41-22 Statutes), is amended to read as follows:
41-23 (c) Upon receipt of certification by the Department that the
41-24 operating privilege of a Texas resident has been suspended or
41-25 revoked in another state pursuant to a law providing for its
41-26 suspension or revocation for failure to deposit security for the
41-27 payment of judgments arising out of a motor vehicle accident, for
42-1 failure to satisfy any judgment, or for failure to file proof of
42-2 financial responsibility, the Department shall contact the official
42-3 who issued the certification and request information pertaining to
42-4 the specific nature of the Texas resident's noncompliance. If the
42-5 alleged noncompliance is based on the failure of the Texas
42-6 resident's insurance company or surety company to obtain
42-7 authorization to write motor vehicle <liability> insurance in the
42-8 other state and for failure of the insurance or surety company to
42-9 execute a power of attorney directing the appropriate official in
42-10 the other state to accept service on its behalf of notice or
42-11 process in any action upon the policy arising out of the accident,
42-12 then the Department shall not suspend the Texas resident's license
42-13 and other registrations. If the evidence shows that the Texas
42-14 resident's operating privilege was suspended in the other state for
42-15 any other violation of another state's laws providing for
42-16 suspension or revocation for failure to deposit security for the
42-17 payment of judgments arising out of motor vehicle accidents, for
42-18 failure to satisfy any judgment, or for failure to file proof of
42-19 financial responsibility, under circumstances that would require
42-20 the Department to suspend a nonresident's operating privilege had
42-21 the accident occurred in this state, then the Department shall
42-22 suspend the Texas resident's license and registrations. The
42-23 suspension shall continue until the resident furnishes evidence of
42-24 his compliance with the law of the other state relating to the
42-25 deposit of security, satisfaction of judgment, or proof of
42-26 financial responsibility.
42-27 SECTION 14. Section 13(c), Texas Motor Vehicle
43-1 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
43-2 Statutes), is amended to read as follows:
43-3 (c) Notwithstanding any other provision of this Act any
43-4 person whose license, registration or nonresident's operating
43-5 privilege has been suspended, or is about to be suspended or shall
43-6 become subject to suspension under this Article, may relieve
43-7 himself from the effect of the judgment by filing with the
43-8 Department satisfactory evidence that there was in effect at the
43-9 time of the accident out of which the judgment arose a policy of
43-10 <liability> insurance covering the operation of the motor vehicle
43-11 involved and filing with the Department an affidavit stating that
43-12 at the time of the accident upon which the judgment has been
43-13 rendered he was insured, that the insurer is liable to pay such
43-14 judgment, and the reason, if known, why the insurance company has
43-15 not paid the judgment. He shall also file the original policy of
43-16 insurance or a certified copy thereof, if available, and such other
43-17 documents as the Department may require to show that the loss,
43-18 injury, or damage for which the judgment was rendered, was covered
43-19 by the policy of insurance.
43-20 If the Department is satisfied from such papers that the
43-21 insurer was authorized to issue the policy of insurance in this
43-22 State at the time of issuing the policy and that such insurer is
43-23 liable to pay such judgment, at least to the extent and for the
43-24 amounts provided in this Article, the Department shall not suspend
43-25 the license, registration or nonresident's operating privilege, or
43-26 if already suspended, shall reinstate them.
43-27 Any person whose license, registration or nonresident's
44-1 operating privilege has heretofore been suspended under the
44-2 provisions of this Article may take advantage of this Section.
44-3 SECTION 15. Section 15, Texas Motor Vehicle
44-4 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
44-5 Statutes), is amended to read as follows:
44-6 Sec. 15. Judgments herein referred to shall, for the purpose
44-7 of this Act only, be deemed satisfied:
44-8 1. When $20,000 <the amount set out in Subdivision (6)
44-9 of Subsection (c) of Section 5 of this Act for bodily injury to or
44-10 death of one person in any one accident> has been credited upon any
44-11 judgment or judgments rendered in excess of that amount because of
44-12 bodily injury to or death of one person as the result of any one
44-13 accident;
44-14 2. When $40,000<, subject to the limit set out in
44-15 Subdivision (6) of Subsection (c) of Section 5 of this Act because
44-16 of bodily injury to or death of one person, the sum set out in
44-17 Subdivision (6) of Subsection (c) of Section 5 of this Act for
44-18 bodily injury to or death of two (2) or more persons in any one
44-19 accident> has been credited upon any judgment or judgments rendered
44-20 in excess of that amount because of bodily injury to or death of
44-21 two (2) or more persons as the result of any one accident, subject
44-22 to a limit of $20,000 for any one person in the accident; or
44-23 3. When $15,000 <the sum set out in Subdivision (6) of
44-24 Subsection (c) of Section 5 of this Act for injury to or
44-25 destruction of property of others in any one accident> has been
44-26 credited upon any judgment or judgments rendered in excess of that
44-27 amount because of injury to or destruction of property of others as
45-1 a result of any one accident;
45-2 Provided, however, payments made in settlement of any claims
45-3 because of bodily injury, death or property damage arising from a
45-4 motor vehicle accident shall be credited in reduction of the
45-5 amounts provided for in this Section.
45-6 SECTION 16. Section 20(a), Texas Motor Vehicle
45-7 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
45-8 Statutes), is amended to read as follows:
45-9 (a) The non-resident owner of a motor vehicle not registered
45-10 in this State may give proof of financial responsibility by filing
45-11 with the Department a certificate or certificates of an insurance
45-12 company authorized to transact business in the state in which the
45-13 motor vehicle or motor vehicles covered in such certificate are
45-14 registered, or if such non-resident does not own a motor vehicle,
45-15 then in the state in which the insured resides, provided such
45-16 certificate otherwise conforms to the provisions of this Act, and
45-17 the Department shall accept the same upon condition that said
45-18 insurance company complies with the following provisions with
45-19 respect to the policies so certified:
45-20 1. Said insurance company shall execute a power of
45-21 attorney authorizing the Department to accept service on its behalf
45-22 of notice or process in any action arising out of a motor vehicle
45-23 accident in this State; and
45-24 2. Said insurance company shall agree in writing that
45-25 such policies shall be deemed to conform with the laws of this
45-26 State relating to the terms of motor vehicle insurance <liability>
45-27 policies issued herein.
46-1 SECTION 17. Section 29, Texas Motor Vehicle
46-2 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
46-3 Statutes), is amended to read as follows:
46-4 Sec. 29. The Department shall upon request consent to the
46-5 immediate cancellation of any bond or certificate of insurance, <or
46-6 the Department shall direct and the State Treasurer shall return to
46-7 the person entitled thereto any money or securities deposited
46-8 pursuant to this Act as proof of financial responsibility,> or the
46-9 Department shall waive the requirement of filing proof, in any of
46-10 the following events:
46-11 1. At any time after two (2) years from the date such
46-12 proof was required when, during the two-year period preceding the
46-13 request, the Department has not received record of a conviction or
46-14 a forfeiture of bail which would require or permit the suspension
46-15 or revocation of the license, registration or nonresident's
46-16 operating privilege of the person by or for whom such proof was
46-17 furnished; or
46-18 2. In the event of the death of the person on whose
46-19 behalf such proof was filed or the permanent incapacity of such
46-20 person to operate a motor vehicle; or
46-21 3. In the event the person who has given proof
46-22 surrenders his license and registration to the Department;
46-23 <Provided, however, that the Department shall not consent to
46-24 the cancellation of any bond or the return of any money or
46-25 securities in the event any action for damages upon a liability
46-26 covered by such proof is then pending or any judgment upon any such
46-27 liability is then unsatisfied, or in the event the person who has
47-1 filed such bond or deposited such money or securities has, within
47-2 two (2) years immediately preceding such request, been involved as
47-3 an operator or owner in any motor vehicle accident resulting in
47-4 injury or damage to the person or property of others. An affidavit
47-5 of the applicant as to the nonexistence of such facts, or that he
47-6 has been released from all of his liability, or has been finally
47-7 adjudicated not to be liable, for such injury or damage, shall be
47-8 sufficient evidence thereof in the absence of evidence to the
47-9 contrary in the records of the Department.>
47-10 Whenever any person whose proof has been cancelled <or
47-11 returned> under Subdivision 3 of this Section applies for a license
47-12 or registration within a period of two (2) years from the date
47-13 proof was originally required, any such application shall be
47-14 refused unless the applicant shall re-establish such proof for the
47-15 remainder of such two-year period.
47-16 SECTION 18. Section 35, Texas Motor Vehicle
47-17 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
47-18 Statutes), is amended to read as follows:
47-19 Sec. 35. Subject to the provisions of Article 5.10, <Texas>
47-20 Insurance Code, and its subsequent amendments <of 1951, as
47-21 amended>, insurance companies authorized to issue motor vehicle
47-22 insurance <liability> policies in this state may establish an
47-23 administrative agency and make necessary reasonable rules in
47-24 connection therewith, relative to the formation of a plan and
47-25 procedure to provide a means by which insurance may be assigned to
47-26 an authorized insurance company for a person required by this Act
47-27 to show proof of financial responsibility for the future and who is
48-1 in good faith entitled to motor vehicle <liability> insurance in
48-2 this state but is unable to secure it through ordinary methods; or,
48-3 in amounts not to exceed the limits required under Section 1A-1 of
48-4 this Act <prescribed in Section 21(b)2 of this law>, for any unit
48-5 of government within the State of Texas which, acting in good
48-6 faith, is unable to secure motor vehicle <liability> insurance in
48-7 this state through ordinary methods; and may establish a plan and
48-8 procedure for the equitable apportionment among such authorized
48-9 companies of applicants for such policies and for motor vehicle
48-10 insurance <liability> policies, including, but not limited to,
48-11 voluntary agreements by insurance companies to accept such
48-12 assignments. When any such plan has been approved by the State
48-13 Board of Insurance, all insurance companies authorized to issue
48-14 motor vehicle insurance <liability> policies in the State of Texas
48-15 shall subscribe thereto and participate therein.
48-16 The State Board of Insurance, in addition to the provisions
48-17 prescribed by Subchapter A, Chapter 5, <Texas> Insurance Code, and
48-18 its subsequent amendments <of 1951, as amended>, may determine,
48-19 fix, prescribe, promulgate, change, and amend rates or minimum
48-20 premiums normally applicable to a risk so as to apply to any and
48-21 every assignment such rates and minimum premiums as are
48-22 commensurate with the greater hazard of the risk, considering in
48-23 connection therewith the experience, physical or other conditions
48-24 of such risk of the person or municipality applying for insurance
48-25 under any such plan.
48-26 SECTION 19. Sections 2a(d) and (e), Chapter 88, General
48-27 Laws, Acts of the 41st Legislature, 2nd Called Session, 1929
49-1 (Article 6675a-2a, Vernon's Texas Civil Statutes), are amended to
49-2 read as follows:
49-3 (d) The following evidence of financial responsibility or a
49-4 photocopy of the evidence satisfies the requirement of this
49-5 section:
49-6 (1) an <a liability> insurance policy or <liability>
49-7 self-insurance or pool coverage document issued by a political
49-8 subdivision or governmental pool pursuant to the authority
49-9 contained in The Interlocal Cooperation Act (Article 4413(32c),
49-10 Vernon's Texas Civil Statutes) and its subsequent amendments,
49-11 Chapter 119, Local Government Code, and its subsequent amendments,
49-12 or other applicable law in at least the minimum amounts required by
49-13 the Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
49-14 Vernon's Texas Civil Statutes) and its subsequent amendments to
49-15 provide proof of financial responsibility covering at least the
49-16 period required by Subsection (a) of this section;
49-17 (2) a standard proof of insurance <liability> form
49-18 promulgated by the Texas Department of Insurance and issued by an
49-19 <a liability> insurer that includes:
49-20 (A) the name of the insurer;
49-21 (B) the insurance policy or other coverage
49-22 document number;
49-23 (C) the policy or other coverage document
49-24 coverage period;
49-25 (D) the name and address of each insured or
49-26 covered person;
49-27 (E) the policy or other coverage document limits
50-1 or a statement that the coverage of the policy complies with at
50-2 least the minimum amounts of <liability> insurance required by the
50-3 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
50-4 Vernon's Texas Civil Statutes) and its subsequent amendments; and
50-5 (F) the make and model of each covered vehicle;
50-6 (3) an insurance binder that confirms to the
50-7 satisfaction of the county tax collector that the owner of the
50-8 motor vehicle to be registered is in compliance with the Texas
50-9 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
50-10 Texas Civil Statutes) and its subsequent amendments for at least
50-11 the period required by Subsection (a) of this section; or
50-12 (4) a copy of a certificate issued by the Department
50-13 of Public Safety that shows that the vehicle to be registered is
50-14 covered by self-insurance<;>
50-15 <(5) a certificate issued by the state treasurer that
50-16 shows that the owner of the vehicle has on deposit with the
50-17 treasurer money or securities in at least the amount required by
50-18 Section 25 of the Texas Motor Vehicle Safety-Responsibility Act
50-19 (Article 6701h, Vernon's Texas Civil Statutes);>
50-20 <(6) a certificate issued by the Department of Public
50-21 Safety that shows that the vehicle is a vehicle for which a bond is
50-22 on file with the Department as provided by Section 24 of the Texas
50-23 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
50-24 Texas Civil Statutes); or>
50-25 <(7) a copy of a certificate issued by the county
50-26 judge of a county in which the vehicle is registered that shows
50-27 that the owner of the vehicle has on deposit with the county judge
51-1 cash or a cashier's check in at least the amount required by
51-2 Section 1A(b)(6) of the Texas Motor Vehicle Safety-Responsibility
51-3 Act (Article 6701h, Vernon's Texas Civil Statutes)>.
51-4 (e) At the time the county tax collector registers a motor
51-5 vehicle, the tax collector shall provide to the person registering
51-6 the motor vehicle a separate document that contains a statement
51-7 that the motor vehicle being registered may not be operated in this
51-8 state unless <liability> insurance coverage for the vehicle in at
51-9 least the minimum amounts required by law remains in effect <to
51-10 insure against potential losses> or unless the motor vehicle is
51-11 exempt from the insurance requirement by Section 1A(b), Texas Motor
51-12 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
51-13 Civil Statutes), and its subsequent amendments.
51-14 SECTION 20. Section 6(c), Chapter 173, Acts of the 47th
51-15 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
51-16 Civil Statutes), is amended to read as follows:
51-17 (c) An application for an original or renewal driver's
51-18 license must be accompanied by evidence of financial responsibility
51-19 or a statement that the applicant does not own a motor vehicle for
51-20 which maintenance of financial responsibility is required under the
51-21 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
51-22 Vernon's Texas Civil Statutes) and its subsequent amendments.
51-23 Evidence of financial responsibility presented under this
51-24 subsection must comply with Section 1A-1 <be in at least the
51-25 minimum amounts required by Subdivision 10, Section 1>, Texas Motor
51-26 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
51-27 Civil Statutes), and its subsequent amendments, must cover each
52-1 motor vehicle that the applicant owns and for which the applicant
52-2 is required to maintain financial responsibility, and may be shown
52-3 in the manner specified under Section 1B(b) of that Act. A
52-4 statement that the applicant does not own an applicable motor
52-5 vehicle must be sworn to and signed by the applicant.
52-6 SECTION 21. (a) Articles 5.06-1 and 5.06-3, Insurance Code,
52-7 are repealed.
52-8 (b) Sections 18, 19, 21, 22, 24, and 25, Texas Motor Vehicle
52-9 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
52-10 Statutes), are repealed.
52-11 SECTION 22. (a) The State Board of Insurance shall adjust
52-12 the benchmark rate applicable to motor vehicle insurance policies
52-13 under Subchapter M, Chapter 5, Insurance Code, that is in effect
52-14 for policies affected by this Act and that are delivered, issued
52-15 for delivery, or renewed, during the first year following the
52-16 effective date of this Act to reflect the loss and expense savings
52-17 that are predicted to result from the implementation of this Act.
52-18 The board shall determine predicted loss and expense savings on a
52-19 prospective and actuarially sound basis.
52-20 (b) If Subchapter I, Chapter 26, Insurance Code, as added by
52-21 this Act, is finally determined to be invalid by a court of
52-22 competent jurisdiction, motor vehicle insurers may assess a premium
52-23 surcharge, in an amount approved by the State Board of Insurance,
52-24 to recover losses resulting from that determination.
52-25 SECTION 23. (a) Except as provided by Subsection (b) of
52-26 this section, this Act takes effect September 1, 1993.
52-27 (b) Sections 6 through 21 of this Act take effect January 1,
53-1 1994.
53-2 (c) This Act applies only to an insurance policy that is
53-3 delivered, issued for delivery, or renewed on or after January 1,
53-4 1994. A policy that is delivered, issued for delivery, or renewed
53-5 before January 1, 1994, is governed by the law as it existed
53-6 immediately before the effective date of this Act, and that law is
53-7 continued in effect for that purpose.
53-8 (d) Subchapter I, Chapter 26, Insurance Code, as added by
53-9 this Act, applies only to an action to recover damages for
53-10 accidental injury that accrues on or after January 1, 1994. An
53-11 action that accrues before January 1, 1994, is governed by the law
53-12 in effect at the time the action accrues, and that law is continued
53-13 in effect for that purpose.
53-14 SECTION 24. The importance of this legislation and the
53-15 crowded condition of the calendars in both houses create an
53-16 emergency and an imperative public necessity that the
53-17 constitutional rule requiring bills to be read on three several
53-18 days in each house be suspended, and this rule is hereby suspended.