BILL ANALYSIS
Insurance Committee
04-19-95
Committee Report (Substituted)
BACKGROUND:
The spiraling cost of automobile insurance in Texas (and the
nation) is due to higher costs for medical care, legal expenses,
auto theft, poor safety engineering, and drunken drivers. No
single piece of legislation will adequately address all of the
underlying issues; rather, a comprehensive approach to the problem
is needed. This bill addresses the high legal costs that are
attached to our present tort liability system. The tort system
diverts premium dollars to such costs. Also, the court system is
a slow process for accident victims especially as proof of
negligence of the other driver is necessary. Less than 10 years
ago, Texas had auto insurance costs that were less than the
national average. Since then, Texas has surpassed average costs
nationally. Since 1990, Texas injury claims and the costs of
settling those claims have increased very rapidly and are the
biggest reasons Texas has become a high-cost state for car
insurance. This trend is driven by changes in claiming behavior
and higher attorney involvement. It needlessly increases the cost
of auto insurance, and has a direct negative impact on the
pocketbooks of every driver in Texas.
PURPOSE:
This bill adds a new Chapter 27 to the state's motor vehicle
insurance laws entitled "Motor Vehicle Accident Compensation and
Cost Containment" to establish a no-fault system for automobile
insurance in Texas. In short, H.B. 149 would convert Texas'
automobile insurance reparations program from the present tort
liability system to one in which "fault" is not an issue.
RULEMAKING AUTHORITY:
It is the opinion of the committee that this bill rants
rulemaking authority to the Insurance Commissioner under SECTION 1
of the bill. SECTION 1: Chapter 27, Subchapter A, Article 27.03,
Insurance Code; SECTION 1: Chapter 27, Subchapter A, Article 27.05
(d), Insurance Code; SECTION 1: Subchapter F, Article 27.71,
Insurance Code.
SECTION BY SECTION ANALYSIS:
SECTION 1 adds a new Chapter 27 to the Insurance Code entitled
"Motor Vehicle Accident Compensation and Cost Containment".
Article 27.01 defines the terms accidental injury, dependent,
economic loss, highway, injured person, medical expenses, medical
rehabilitation services, motorcycle, motor vehicle, motor vehicle
insurance, motor vehicle insurer, noneconomic loss, occupying,
owner, person, personal compensation coverage, personal
compensation insured, replacement services loss, and resident
relative.
Article 27.02 provides that a person may not operate a motor
vehicle other than a motorcycle without coverage complying with
Chapter 27.
Article 27.03 grants the Commissioner of Insurance the authority to
adopt rules to administer this act.
Article 27.04 provides that in any controversy concerning the terms
of a policy, a motor vehicle insurance policy delivered, issued for
delivery, or renewed in Texas will be construed to comply with this
act.
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Article 27.05 provides that either party to a dispute between an
insurer and an insured can request arbitration, recognizes the
American Arbitration Association, establishes timelines and
procedures for appeal of decisions.
Article 27.06 specifies that under this act a person is using a
motor vehicle if the person is operating or occupying the vehicle.
Non-occupants manufacturing, selling, loading or unloading, or
maintaining a vehicle are exempt from these provisions.
Article 27.07 excludes the United States as "an owner of a
vehicle" except when the U.S. has elected to insure a motor
vehicle.
Article 27.08 allows a court of record to enter an order for
discovery in a dispute except when the dispute is referred to
arbitration.
Article 27.09 establishes that the validity of the provisions of
this act can be determined in an action for declaratory judgment in
district court in Travis County. An appeal of a declaratory
judgment is an accelerated appeal governed by Rule 42 of the Texas
Rules of Appellate Procedure.
Article 27.21 requires all motor vehicle insurance policies
delivered, issued for delivery, or renewed in Texas to provide
personal compensation coverage.
Article 27.22 provides that benefits under personal compensation
coverage are payable without regard to fault.
Article 27.23 requires insurers to pay benefits to an insured that
sustains an injury outside of Texas but in the United States, its
territories or possessions or Canada in at least the minimum amount
of insurance coverage required by the laws of the other
jurisdiction. Insurers (including nonadmitted insurers)
transacting business in Texas must file, on a form approved by the
Commissioner, a statement that any contract of primary motor
vehicle insurance covering use of a vehicle in Texas provides
personal compensation coverage in compliance with laws of this
state.
Article 27.31 requires motor vehicle insurance policies to provide
a minimum $50,000 up to at least $200,000 in first-party personal
compensation benefits for each covered person in any single
accident. Benefits include medical expenses, loss of income (not
to exceed $200 per week), and replacement services loss (not to
exceed $100 per week). Insurers are required to offer a per-person
deductible of $0, $100 and $1,000 limited to the insured and a
resident relative. Selection of a deductible by the named insured
is binding on a resident relative of the insured. Policies are
required to provide at least $5,000 in death benefits, as
additional insurance.
Article 27.32 allows insurers to provide optional additional
coverages.
Article 27.33 specifies that personal compensation coverage
provides benefits for the named insured, any resident relative of
the named insured, a person occupying a vehicle insured by the
policy, a person being struck by a motor vehicle insured by the
policy, and a motorcycle operator or occupant struck by the insured
motor vehicle.
Article 27.34 specifies that personal compensation coverage does
not provide benefits for a person injured while committing a
felony, using a stolen vehicle, driving while intoxicated, using a
motor vehicle not specified in the policy, using an, uninsured
motor vehicle, or guilty of intentional misconduct.
Article 27.35 prohibits payment of medical expenses which exceed
the amount authorized by this article. Payment of pass-through
costs are not required.
Article 27.36 excludes payment for a private room unless medically
required.
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Article 27.37 excludes payment for treatment that is experimental,
treatment that is rendered as part of nonmedical research, or
treatments that are not commonly recognized throughout the medical
profession.
Article 27.38 limits medical expense benefits to two years after
the date of the accident.
Article 27.39 allows insurers to review medical expenses prior to,
during, and after treatment.
Article 27.40 provides for the computation of the loss of income
benefit. Reduces benefit by income from substitute work, and
income that would have been earned from substitute work that the
injured person unreasonably failed to undertake. Loss of income
does not include loss of income occurring after the death of the
injured person. Loss of income benefits are limited to two years
after the date of the accident.
Article 27.41 prohibits injured individuals from receiving
replacement service benefits while receiving loss of income
benefits. Replacement services do not include loss accrued after
the death of an injured person. Replacement service benefits are
limited to two years after the date of the accident.
Article 27.42 limits death benefits to one year after the accident.
Article 27.51 specifies that the prompt payment of claims
provisions of Article 21.55 apply to claims under this act.
Article 27.52 specifies that the insurer must pay benefits, at the
option of the insurer, to the injured person, the parent or
guardian of a minor or incompetent injured person, the dependent or
executor of a deceased injured person, or the person or
organization rendering services to the injured person.
Article 27.53 requires employers to furnish information on an
employee who has filed a claim under this act, upon request by an
insurer, on a form promulgated by the Commissioner.
Article 27.54 requires medical providers to furnish a written
report which includes the injured party's medical history,
condition, treatment, and dates and costs of treatment, upon
request by the paying insurer. The written report must be
accompanied by a statement indicating whether treatment rendered
was required and must identify what expenses were incurred as a
result of the accident. Insurers must pay for the cost of
providing the report. Disclosure of information that is
confidential under federal law is not required.
Article 27.61 requires the insurer to pay personal compensation
benefits for the claims of the named insured or a resident relative
before paying other claims arising from an accident. If the limits
are not exhausted, the insurer must pay benefits for claims of
other insureds. If more than one insurer is obligated to pay, the
insurer that first receives the claim must pay and subsequently
recover a pro rata payment from any other insurer obligated to pay
the benefits.
Article 27.62 excludes unoccupied and parked vehicles from the
provisions of this act unless the manner in which the vehicle is
parked causes an unreasonable risk of injury.
Article 27.63 prohibits the stacking of policy limits to determine
the total limit of coverage available to an injured person for an
accident regardless of the number of motor vehicles involved in the
accident, personal compensation insureds, claims made for the
accident, motor vehicles or premiums shown on the policies, or
premiums paid. A policy may specify that the highest policy limit
for a coverage or benefit is the limit for that coverage or benefit
if two or more policies apply to the same accident.
Article 27.64 reduces the amount of personal compensation benefits
by the amount of benefits paid under Subtitle A or C, Title 5,
Labor Code. Coverage other than personal compensation coverage is
excess coverage for any accidental injury covered by a personal
compensation insurance policy. -3-
Article 27.71 allows the Commissioner of Insurance to adopt rules
on cost containment including provisions for: precertification of
covered services; preauthorization of specified services; a second
opinion before surgery; concurrent utilization review; discharge
planning; coordination of benefits complying with NAIC guidelines;
and managed care or point of service arrangements.
Article 27.91 prohibits garnishment of medical expense benefits
unless the assignment compensates for a product, service, or
accommodation provided by an assignee, or the benefits for loss of
income or replacement services are assigned to pay alimony, spousal
maintenance, or child support.
Article 27.92 prohibits insurers from canceling, nonrenewing, or
increasing premiums for a policy under these provisions because of
a claim if the insured was not at fault in the accident. Civil
action for equitable relief from or civil damages for violation of
these provisions is prohibited.
Article 27.93 requires (unless arbitration is elected) any action
for benefits to be filed within two years of the accident or within
two years of the last benefits payment date if some benefits have
been paid.
Article 27.94 requires an injured party to submit to mental or
physical examinations if it is material to a claim.
Article 27.95 allows insurers to suspend the payment of future
benefits if the insurer has requested that the injured party submit
to medical or rehabilitation services, and the injured party
unreasonably refuses to submit to the request.
Article 27.101 prohibits anyone from presenting false, incomplete,
or misleading information concerning material related to a claim.
Article 27.102 makes any intentional fraudulent claim attempt a
criminal offense and punishable by a maximum fine of $10,000.
Article 27.103 allows a person who has been injured to recover
damages resulting from a fraudulent claim if the person committed
fraud with the intent to injure, defraud, or deceive. A person
injured by the fraudulent act can recover actual damages, punitive
damages not exceeding two times actual damages, and attorney's
fees.
Article 27.111 limits tort action resulting from motor vehicle
accidents to a claim for economic or noneconomic damages resulting
from an accidental injury caused by the negligent conduct or
intentional misconduct of another person, including a claim for
loss of consortium or companionship and any other claim brought by
a person other than the injured person.
Article 27.112 limits uninsured motorists recovery for damages to
only economic loss not to exceed $20,000 per person and $40,000 per
occurrence for any losses that would have been covered had the
uninsured motorist complied with the provisions of this act.
Article 27.113 allows a person to bring a cause of action to
recover damages for uncompensated economic loss arising, in whole
or in part, out of the use of a motor vehicle. "Uncompensated
economic loss" is defined as the portion of economic loss arising
out of an accidental injury that exceeds the sum of the personal
compensation benefits that the injured person is entitled to
receive and benefits paid by other persons for the same injury.
Deductibles are not included.
Article 27.114 allows a person to bring a cause of action to
recover damages for accidental injury from a person who caused the
injury and is convicted of a felony or an offense related to the
injury. A person who provides such benefits for an injury is
subrogated to the claim of the injured party against the convicted
person. Insurance policies are prohibited from providing liability
coverage or uninsured motorists insurance for damages recovered
under these provisions.
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Article 27.115 allows a person to bring a cause of action for
recovery of damages for serious injury resulting in whole or in
part from a motor vehicle accident. The term "serious injury" is
defined as an accidental injury that results in death,
dismemberment, a significant and permanent loss of an important
body function caused by a continuing physical injury, or
significant and permanent disfigurement that is usually visible
while the injured person is clothed. The term does not include a
soft tissue injury.
Article 27.116 provides for an insurer's right of subrogation.
Article 27.117 requires insurers to pay personal compensation due
without regard to the value of a claim for damages for the injury.
Insurers are authorized to subtract the amount of net recovery from
the total amount of personal compensation to be paid after recovery
under a claim is realized. If payment has already been made, the
recipient must repay the amount received to the insurer.
Article 27.131 prohibits an insurer from issuing motorcycle
insurance policies under the provisions of this act. Motor vehicle
policies are required to provide personal compensation and death
benefits to the operator or passenger of a motorcycle for accidents
involving the motorcycle and another motor vehicle other than a
motorcycle.
Article 27.132 provides that the law does not apply to damages for
accidental injury arising, in whole or in part, out of the use of
a motorcycle. The law does apply to an accidental injury arising
out of the use of a motorcycle if the injured person is entitled to
personal compensation benefits under this law.
Article 27.141 limits application of chapter to private passenger
nonfleet motor vehicles.
Article 27.142 requires offer of limited and broad form collision
coverage with initial application, including written explanation of
coverages.
Article 27.143 specifies that collision coverage offer does not
include comprehensive (other than collision) coverage.
Article 27.144 defines limited collision as collision protection to
the insured vehicle when the operator is not substantially at
fault.
Article 27.145 defines broad form collision as collision protection
to the insured vehicle regardless of fault. Any applicable
deductible is waived if operator is not substantially at fault.
Article 27.146 defines substantially at fault to include a person's
action or inaction resulting in more than 50 percent of the cause
of the accident.
Article 27.148 provides that the insured may reject the collision
coverage options in writing. Such rejection shall inform the
applicant of the his or her rights if damage occurs to the insured
vehicle under the option selected, and may be included in the
application.
Article 27.149 requires insurers to, at least annually, with
renewal of the policy to notify the policyholder of: the status of
collision coverage selected; coverages available and rights of the
insured under each option; and procedures for changing coverage
selection. Notice must be made on a form approved by the
Commissioner.
Article 27.150 requires that payment be made jointly to
policyholder and repair facility.
Article 27.151 permits insured to use any repair facility for an
estimate or actual repair of vehicle damage.
Article 27.152 establishes criteria for a direct repair program by
insurers.
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Article 27.161 requires a motor vehicle policy issued under the
chapter to provide residual liability coverage.
Article 27.162 requires that residual liability be available to the
extent that the liability is retained by the insured under
subchapters I and J of the chapter.
SECTION 2 amends Articles 5.0 (b) and (e) of the Insurance Code to
make conforming changes.
SECTION 3 amends Article 5.01-1 of the Insurance Code to make a
conforming change.
SECTION 4 amends Article 5.06 (1) of the Insurance Code to make a
conforming change.
SECTION 5 amends Article 5.06-6 of the Insurance Code to make a
conforming change.
SECTION 6 amends Section 1(a), Article 5.101 of the Insurance Code
to make a conforming change.
SECTION 7 amends Sections 1 (2), (3), (4) , Article 21.81 of the
Insurance Code to make a conforming change.
SECTION 8 amends Sections 2(a), Article 21.81 of the Insurance Code
to make conforming changes.
SECTION 9 amends Sections 3 (a), (d), and (f) , Article 21.81 of
the Insurance Code to make a conforming change.
SECTION 10 amends Sections 4 (a) and (c), Article 21.81 of the
Insurance Code to make conforming changes.
SECTION 11 amends Section 84.004 (c), of the Civil Practice and
Remedies Code to make a conforming change.
SECTION 12 amends Section 612.001 of the Government to make a
conforming change.
SECTION 13 amends Section 2001.221 of the Government Code to make
a conforming change.
SECTION 14 amends Section 2002.023 of the Government Code to make
a conforming change.
SECTION 15 amends Section 142.006 of the Local Government Code to
make a conforming change.
SECTION 16 amends Section 157.042 of the Local Government Code to
make a conforming change.
SECTION 17 amends Section 113.097 (d) of the Natural Resources Code
to make a conforming change.
SECTION 18 amends Section 2 (a), Chapter 88, General Laws, Acts of
the 41st Legislature, 2nd Called Session, 1929 (Article 6675a-2,
Vernon's Texas Civil Statutes) to make a conforming change.
SECTION 19 amends Section 2A, Chapter 18, General Laws, Acts of the
41st Legislature,
5th Called Session, 1930 (Article 6675a-6e, Vernon's Texas Civil
Statutes) to make a conforming change.
SECTION 20 amends Section 21 (k), Chapter 173, Acts of the 47th
Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
Civil Statutes) to make a conforming change.
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SECTION 21 amends Section 23A (f), Chapter 173, Acts of the 47th
Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
Civil Statutes) to make a conforming change.
SECTION 22 amends Section 34 (f), Chapter 173, Acts of the 47th
Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
Civil Statutes) to make a conforming change.
SECTION 23 amends Section 25 (1), Texas Commercial Driver's License
Act (Article 6687b-2, Vernon's Texas Civil Statutes) to make a
conforming change.
SECTION 24 amends Section 4, Chapter 209, Acts of the 53rd
Legislature, Regular Session, 1953 (Article 6701c-1, Vernon's Texas
Civil Statutes) to make a conforming change.
SECTION 25 amends Section 47 (a), Uniform Act Regulating Traffic on
Highways (Article 6701d, Vernon's Texas Civil Statutes) to make a
conforming change.
SECTION 26 amends Section 107F, Uniform Act Regulating Traffic on
Highways (Article 6701d, Vernon's Texas Civil Statutes) to make a
conforming change.
SECTION 27 amends Section 140 (a), Uniform Act Regulating Traffic
on Highways (Article 6701d, Vernon's Texas Civil Statutes) to make
a conforming change.
SECTION 28 amends Section 143A (a), Uniform Act Regulating Traffic
on Highways (Article 6701d, Vernon's Texas Civil Statutes) to make
a conforming change.
SECTION 29 amends Section 11(b), Chapter 302, Acts of the 55th
Legislature, Regular Session, 1957 (Article 67011-4, Vernon's Texas
Civil Statutes) to make a conforming change.
SECTION 30 repeals articles 5.06-1 and 5.06-3 of the Insurance
Code; Section 2a, Chapter 88, General Laws, Acts of the 41st
Legislature, 2nd Called Session, 1929 (Article 6675a-2a, Vernon's
Texas Civil Statutes); Section 5, Chapter 517, Acts of the 58th
Legislature, 1963 (Article 6675a-6c, Vernon's Texas Civil
Statutes); Section 6(c), Chapter 173, Acts of the 47th Legislature,
Regular Session, 1941 (Article 6687b, Vernon's Texas Civil
Statutes); Section 24 (1), Chapter 173, General Laws, Acts of the
47th Legislature, Regular Session, 1941 (Article 6687b, Vernon's
Texas Civil Statutes); and the Texas Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil Statutes).
SECTION 31 Effective Date.
SECTION 32 Emergency Clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The changes reflect the difference betweent the substitute and
filed bill:
SECTION 1 - Renumbers Chapter 26 to Chapter 27 and changes the
title of the Chapter.
Art. 27.01 - Adds and deletes certain definitions to correspond
with the language in Chapter 26.
Art. 27.02 - Requires operators of a motor vehicle, other than a
motorcycle, to comply with the financial responsibility
requirements of Chapter 26, but eliminates all references to the
current mandatory auto liability system. C.S.H.B. 149 still
provides for the penalties for failure to show proof of liability.
Art. 27.03 - Includes new language allowing the Commissioner to
adopt rules for the administration of this Chapter.
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Art. 27.04 - Alters language regarding nonconforming policies in
this state to eliminate specific reference to the Motor Vehicle
Safety Responsibility Act.
Art. 27.05 - Alters and clarifies arbitration language.
Art. 27.06 - Adds new language clarifying when a person is
considered to be using or occupying a motor vehicle.
Art. 27.07 - Adds new language concerning the United States as
owner of a vehicle.
Art. 27.08 - Adds new language regarding discovery of facts.
Art. 27.09 - Adds new language regarding declaratory judgment.
Art. 27.22 - Adds new language allowing personal compensation
coverage to be payable without regard to fault.
Art. 27.23 - Alters and clarifies language regarding out-of-state
claims.
Art. 27.31 - Adds and alters language concerning personal
compensation benefits, the death benefit, and liability coverage.
Raises the level of minimum benefits from $20,000 to $50,000 and
mandates that insurers offer a policy of up to $200,000 in first
party benefits. Raises death benefit from $2,000 to $5,000.
Art. 27.32 - Adds language permitting insurers to make available
other benefits, in addition to or different from, the minimum
required benefits.
Art. 27.33 - Clarifies language involving covered persons.
Art. 27.34 - Clarifies language regarding persons excluded from
coverage.
Art. 27.35 - Alters and adds language regarding medical expense
benefit payment limits.
Art. 27.36 - Adds new language excluding payment for private room
under medical expense benefits unless medically necessary.
Art. 27.37 - Adds new language excluding payment for experimental
treatment, services, products, or procedures under medical expense
benefits.
Art. 27.38 - Adds new language excluding payment for medical
expenses accrued after the second anniversary of an accident.
Art. 27.39 - Adds new language allowing the insurer to review
medical expenses to be certain
they are reasonable and necessary.
Art. 27.40 - Changes computation of loss of income benefits to 80%
(from 70%) with some exclusions. Eliminates loss of income after
death of injured person or after second anniversary of an accident.
Art. 27.41 - Changes replacement services benefit from 70% to 80%.
Eliminates replacement services benefit after death of injured
person or after second anniversary of date of an accident.
Art. 27.42 - Adds new language preventing a death benefit from
being paid after the first anniversary of and accidental injury
that directly and proximately caused the death.
Art. 27.51 - Makes timeframe of payment of benefits subject to
Article 21.55 of Insurance code.
Art. 27.52 - Adds new language concerning specifically who is to
receive payment of personal compensation benefits.
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Art. 27.53 - Adds new language concerning the verification of
entitlement to benefits by employer report.
Art. 27.54 - Adds new language concerning the verification of
entitlement of benefits, medical reports, and access to medical
documents.
Art. 27.62 - Adds new language regarding the exclusion of parked
vehicles from personal compensation coverage.
Art. 27.91 - Adds new language concerning the assignment or
garnishment of personal compensation benefits.
Art. 27.92 - Adds new language preventing an insurer from
canceling, refusing to renew, or increasing a premium following a
claim resulting from an accident in which the insured was not at
fault.
Art. 27.93 - Adds new language concerning an action for benefits.
Art. 27.94 - Adds new language concerning mental and physical
examinations.
Art. 27.95 - Adds new language concerning medical or rehabilitation
services.
Art. 27.101 - Adds new language regarding fraudulent claims.
Art. 27.102 - Adds new language criminal offenses with regard to
the intent to injure, defraud, or deceive another person.
Art. 27.103 - Adds new language concerning civil recovery for
fraudulent claims.
Art. 27.112 - Adds new language regarding persons using uninsured
motor vehicles. Gives the uninsured the right to sue up to certain
limits.
Art. 27.116 - Adds new language regarding the insurer's right to
subrogation.
Art. 27.117 - Adds new language concerning the effect of claims for
damages on payment of compensation benefits.
Art. 27.131 - Adds language precluding motorcycle owners from
purchasing the Chapter 26 benefits.
Art. 27.132 - Adds language concerning the liability of the owner
or operator of a motorcycle.
Art. 27.141 - Adds language indicating the scope of a subchapter
dealing with collision coverage.
Art. 27.142 - Adds language that mandates insurers offer policies
with collision coverage under the no-fault plan.
Art. 27.143 - Adds language stating that collision coverage will
not include what is customarily considered as "comprehensive
coverage."
Art. 27.144 - Adds language concerning limited collision coverage
-coverage which must pay if the insured is not at fault in an
accident.
Art. 27.145 - Adds language concerning broad collision coverage -
coverage which must pay no matter if the insured is at fault or
not.
Art. 27.146 - Adds language clarifying "substantially at fault."
Art. 27.147 - Adds language concerning optional deductibles in
connection with collision coverage.-9-
Art. 27.148 - Adds language allowing the insurer to offer the
insured an opportunity to "reject" collision coverage.
Art. 27.149 - Adds language concerning renewals of a policy
containing collision coverage requiring an insurer to at least
annually provide an updated status on such coverage on a form
approved by the Commissioner.
Art. 27.150 - Adds language requiring that a payment made under
collision coverage be made jointly to the policyholder and repair
facility.
Art. 27.151 - Adds language permitting an insured to use any repair
facility for an estimate or actual repair of vehicle damage.
Art. 21.152 - Adds language establishing criteria for a direct
repair program by insurers.
Art. 21.161 - Adds language requiring a motor vehicle policy issued
under the chapter to provide residual liability coverage.
Art. 27.162 - Adds language requiring that residual liability be
available to the extent that liability is retained by the insured
under subchapters I and J of the chapter.
SECTIONS 2-30 - Add conforming language.
SECTIONS 31-32 - No change.
The substantive changes include: raises the minimum level of
benefits for first-party personal compensation benefits from
$20,000 to $50,000, and mandates that insurers offer up to
$200,000; adds property damage to the no-fault system; eliminates
motorcycles from the no-fault system; deletes reference to a
mandatory rate rollback; and removes the procedures and
requirements for showing proof of automobile liability coverage.
SUMMARY OF COMMITTEE ACTION
In accordance with House rules, H.B. 149 was heard in a public
hearing on April 5, 1995. The Chair laid out H.B. 149 and a
substitute to H.B. 149. The Chair recognized Representative
Clemons to explain the difference between the substitute to H.B.
149 and filed bill. The Chair laid H.B. 149 on the table subject
to the call of the Chair.
The Chair laid out H.B. 149 and the substitute to H.B. 149 for
reconsideration on the subject to the call of the Chair. The Chair
heard no objections and H.B. 149 and the substitute to H.B. 149
were laid out for reconsideration by the Committee. The Chair
recognized the following persons to testify in support of H.B. 149:
Frederick H. Fox II, Texas Association of Rehabilation
Professionals; Robert D. Simpson, State Farm Mutual Automobile
Insurance; Company; Bob Huxel, Texas Association of Insurance
Agents; Milford "Pat" Smith, Farm Bureau Insurance Companies.
The Chair recognized the following persons to testify in
opposition to H.B. 149:
Rick Freeman, Texas Trial Lawyers Association; Mike Slack, Texas
Trial Lawyers Association.
The Chair recognized the following person to testify neutrally on
H.B. 149: David Durden, Texas Department of Insurance. The Chair
left H.B. 149 pending before the Committee.
On April 19, 1995, the Chair laid out H.B. 149 and a
substitute to H.B. 149 and recognized Representative Clemons to
explain the difference between the substitute to H.B. 149 and the
filed bill. The Chair recognized Representative Counts who moved
the Committee adopt the substitute to H.B. 149. The Chair heard no
objections and the substitute to H.B. 149 was adopted. The Chair
recognized Representative Counts who moved the Committee report
H.B. 149 as substituted to the full House with the recommendation
that it do pass and be printed. Representative Averitt seconded
the motion and the motion prevailed by the following vote:
AYES (6); NAYES (1); ABSENT (2); PNV (0).
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