By:  Bivins                                             S.B. No. 71
       73R1565 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to a motor vehicle insurance premium surcharge for certain
    1-3  traffic law violations.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter A, Chapter 5, Insurance Code, is
    1-6  amended by adding Article 5.03-15 to read as follows:
    1-7        Art. 5.03-15.  PREMIUM SURCHARGE FOR CERTAIN TRAFFIC SAFETY
    1-8  LAW VIOLATIONS
    1-9        Sec. 1.  DEFINITIONS.  In this article:
   1-10              (1)  "Insured" means the named insured on a policy of
   1-11  motor vehicle insurance or a member of the named insured's
   1-12  household.
   1-13              (2)  "Motor vehicle insurer" means any insurance
   1-14  company, interinsurance exchange, mutual, reciprocal, association,
   1-15  Lloyd's plan, or other insurer writing motor vehicle insurance in
   1-16  this state.
   1-17              (3)  "Traffic safety law violation" means an offense
   1-18  defined in the Uniform Act Regulating Traffic on Highways (Article
   1-19  6701d, Vernon's Texas Civil Statutes) except Sections 34, 76, 78,
   1-20  80, 81, 93, 94, 95, 96, 97, and 107A, and Articles 14 and 15 of
   1-21  that Act.
   1-22        Sec. 2.  EXEMPTION.  This article does not apply to a motor
   1-23  vehicle insurance policy written under the Texas Automobile
   1-24  Insurance Plan or otherwise written under Section 35, Texas Motor
    2-1  Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
    2-2  Civil Statutes).
    2-3        Sec. 3.  PREMIUM SURCHARGE.  (a)  If an insured is convicted
    2-4  of a traffic safety law violation, the motor vehicle insurer that
    2-5  issued the policy may, on renewal of the policy, assess a premium
    2-6  surcharge for each violation equal to not more than 10 percent of
    2-7  the premium in effect at the time of the violation.
    2-8        (b)  A premium surcharge under this article may not be
    2-9  assessed after the third anniversary of the conviction.
   2-10        Sec. 4.  BOARD RULES.  The board may adopt rules excluding a
   2-11  violation from the definition of a traffic safety law violation if
   2-12  the board finds that the fact that the violation occurs does not
   2-13  increase:
   2-14              (1)  the probability that an accident will occur; and
   2-15              (2)  the probable severity or cost of an accident.
   2-16        SECTION 2.  Article 5.01-1, Insurance Code, is repealed.
   2-17        SECTION 3.  This Act takes effect September 1, 1993, and
   2-18  applies only to an insurance policy that is delivered, issued for
   2-19  delivery, or renewed on or after January 1, 1994.  A policy that is
   2-20  delivered, issued for delivery, or renewed before January 1, 1994,
   2-21  is governed by the law as it existed immediately before the
   2-22  effective date of this Act, and that law is continued in effect for
   2-23  that purpose.
   2-24        SECTION 4.  The importance of this legislation and the
   2-25  crowded condition of the calendars in both houses create an
   2-26  emergency   and   an   imperative   public   necessity   that   the
   2-27  constitutional rule requiring bills to be read on three several
    3-1  days in each house be suspended, and this rule is hereby suspended.