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.