BILL ANALYSIS S.B. 1411 By: Harris Economic Development 04-28-95 Committee Report (Amended) BACKGROUND Previously, the Texas Automobile Assigned Risk Plan (now the Texas Auto Insurance Plan) provided in its plan of operation a credit to insurance companies that wrote insurance policies for senior citizens and youthful drivers. This credit counted towards the total number of policies the companies were required to write for the plan. When the law authorizing the plan was rewritten, the language authorizing these credits was changed to include "underserved geographic areas." In adopting the new plan of operation, the senior citizen and youthful driver credits were dropped. Deletion of these credits means that insurers no longer have an incentive to write auto insurance on a voluntary basis for senior citizens and youthful drivers. PURPOSE As proposed, S.B. 1411 specifies certain incentive programs to be included among those incentive programs designed to minimize the use of the Texas Automobile Insurance Plan Association. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the commissioner of insurance under SECTION 1 (Section 3(e), Article 21.81, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 3(e), Article 21.81, Insurance Code, to include among incentive programs, designed to encourage members of the Texas Automobile Insurance Plan Association to write insurance on a voluntary basis and to minimize the use of the association as a means to obtain insurance, such approved programs that recognize the voluntary writing of bodily injury and property damage liability insurance for male vehicle drivers under 25 years of age, for all vehicle operators 65 years of age or older, and for vehicle operators in underserved geographic areas. Requires the value of credits for male vehicle operators under 25 years of age and for all vehicle operators 65 years of age or older to be not less than one credit for the voluntary writing of one vehicle in these classes. Requires the value of credits for underserved geographic areas to be determined and designated by the commissioner by rule. SECTION 2. Emergency clause. Effective date: 90 days after adjournment.