By: Rosson S.B. No. 359
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of a program to provide motor vehicle
1-2 insurance coverage at affordable rates for certain individuals with
1-3 good driving records.
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 5.12-2 to read as follows:
1-7 Art. 5.12-2. GOOD DRIVER PROGRAM
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Applicant" means an applicant for participation
1-10 in the program.
1-11 (2) "Driving record" means an individual's history of
1-12 convictions of violations of traffic safety regulations.
1-13 (3) "Insurer" means an insurance company,
1-14 interinsurance exchange, mutual, capital stock company, fraternal
1-15 benefit society, local mutual aid association, county mutual,
1-16 reciprocal, association, Lloyd's plan, or other entity writing
1-17 motor vehicle insurance in this state. The term includes a company
1-18 affiliated with an insurer.
1-19 (4) "Program" means the Texas Good Driver Program.
1-20 (5) "Traffic safety regulation" means a law or
1-21 ordinance of this state or a political subdivision of this state
1-22 relating to the operation of motor vehicles, other than a
1-23 regulation relating to pedestrians or to the parking of motor
2-1 vehicles.
2-2 Sec. 2. ELIGIBILITY CONDITIONS FOR DRIVERS. (a) To be
2-3 eligible to participate in the program, an applicant must:
2-4 (1) be licensed to drive in this state;
2-5 (2) have held a driver's license for at least ten
2-6 years as of the date that the application is filed;
2-7 (3) have not, during the three years preceding the
2-8 date of the application, been convicted of a violation of a traffic
2-9 safety regulation; and
2-10 (4) have not, during the three years preceding the
2-11 date of the application, been principally at fault in a motor
2-12 vehicle accident.
2-13 (b) An applicant is not eligible to participate in the
2-14 program if the applicant has been convicted of:
2-15 (1) an offense under Article 67011-1, Revised
2-16 Statutes; or
2-17 (2) an offense relating to the operation of a motor
2-18 vehicle under Section 19.05, Penal Code.
2-19 (c) For purposes of Subsections (a) and (b) of this section,
2-20 an applicant is considered to have been convicted in a case if:
2-21 (1) a sentence is imposed; or
2-22 (2) the applicant receives probation or deferred
2-23 adjudication.
2-24 Sec. 3. INSURER REQUIREMENTS; PREMIUM RATES. (a) An
2-25 insurer shall offer motor vehicle insurance coverage to each
3-1 individual who is eligible for the program and who applies for
3-2 motor vehicle insurance coverage from that insurer.
3-3 (b) The insurer must offer the coverage at the lowest
3-4 applicable premium rate offered by that insurer or insurance
3-5 company group for motor vehicle insurance coverage from that
3-6 insurer.
3-7 (c) An insurer may require that a member of an applicant's
3-8 household be excluded from coverage under the policy if that
3-9 individual is not eligible for the program.
3-10 Sec. 4. CANCELLATION AND NONRENEWAL. (a) An insurer may
3-11 cancel an insurance policy issued under this article during the
3-12 term of the policy only as permitted under Tex. Ins. Code Art.
3-13 21.49-2b Sec. 4(e).
3-14 (b) An insurer may refuse to renew a policy under this
3-15 article only if the insured is no longer eligible for the program.
3-16 (c) If an insurer cancels or refuses to renew a policy under
3-17 this subsection because of the conduct of an individual insured,
3-18 coverage for another individual covered by the policy may not be
3-19 canceled or nonrenewed and the insurer shall determine the
3-20 applicable rate for the remaining insured for premium purposes.
3-21 SECTION 2. (a) This Act takes effect September 1, 1993.
3-22 (b) Section 5, Article 5.12-2, Insurance Code, as added by
3-23 this Act, applies only to a motor vehicle insurance policy that is
3-24 delivered, issued for delivery, or renewed before January 1, 1994,
3-25 is governed by the law as it existed immediately before the
4-1 effective date of this Act, and that law is continued in effect for
4-2 that purpose.
4-3 SECTION 3. The importance of this legislation and the
4-4 crowded condition of the calendars in both houses create an
4-5 emergency and an imperative public necessity that the
4-6 constitutional rule requiring bills to be read on three several
4-7 days in each house be suspended, and this rule is hereby suspended.