74R9007 PB-D
By Goolsby, Driver, et al. H.B. No. 22
Substitute the following for H.B. No. 22:
By Driver C.S.H.B. No. 22
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a discount on motor vehicle insurance premiums for
1-3 certain students based on academic achievement.
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 5.03-3 to read as follows:
1-7 Art. 5.03-3. PREMIUM DISCOUNT FOR ACADEMIC ACHIEVEMENT
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Honor student" means an individual who, according
1-10 to the official scholastic records for the preceding academic
1-11 semester, quarter, or other grade reporting period:
1-12 (A) ranks scholastically in the upper 20 percent
1-13 of the class;
1-14 (B) has a "B" average or better;
1-15 (C) has a 3.0 average or better on a 4.0 scale;
1-16 or
1-17 (D) is on the "honor roll," the "dean's list,"
1-18 or an analogous listing based on academic achievement.
1-19 (2) "Insurer" means an insurance company,
1-20 interinsurance exchange, mutual, capital stock company, fraternal
1-21 benefit society, local mutual aid association, county mutual,
1-22 reciprocal, association, Lloyd's plan, or other entity writing
1-23 motor vehicle insurance in this state. The term includes a company
1-24 affiliated with an insurer.
2-1 (3) "Motor vehicle" means any private passenger
2-2 vehicle, including a motorcycle, that:
2-3 (A) is registered in this state; and
2-4 (B) has a gross weight of 25,000 pounds or less.
2-5 (4) "Traffic safety regulation" means a law or
2-6 ordinance of this state or a political subdivision of this state
2-7 relating to the operation of motor vehicles other than a regulation
2-8 relating to pedestrians or to the parking of motor vehicles.
2-9 Sec. 2. DISCOUNT REQUIRED. (a) An insurer who delivers or
2-10 issues for delivery in this state a motor vehicle insurance policy,
2-11 on receipt of written verification from the insured that the
2-12 insured or a family member covered by the policy is eligible under
2-13 Subsection (b) of this section, shall grant a discount in the
2-14 amount provided by Subsection (d) of this section in the premiums
2-15 charged for liability, personal injury protection, medical payment,
2-16 and collision coverage for the motor vehicle designated to be
2-17 driven by the honor student.
2-18 (b) To be eligible for a discount under this article, an
2-19 applicant for a discount must file information with the insurer
2-20 annually on a form prescribed by the commissioner. The information
2-21 must present evidence satisfactory to establish that the person
2-22 covered by the discount:
2-23 (1) is licensed to drive in this state;
2-24 (2) is unmarried;
2-25 (3) is under 25 years of age;
2-26 (4) is enrolled as a full-time student in:
2-27 (A) the junior or senior year of high school;
3-1 (B) academic courses in an institution of higher
3-2 education; or
3-3 (C) a recognized course of study for
3-4 professional certification in a vocational technical school; and
3-5 (5) is an honor student.
3-6 (c) In addition to the information required under Subsection
3-7 (b) of this section, if the insurance policy covers more than one
3-8 motor vehicle, the applicant for the discount must designate the
3-9 vehicle to be driven by the honor student. A discount under this
3-10 article applies only to the premium attributable to coverage for
3-11 the vehicle designated under this subsection.
3-12 (d) The commissioner shall set the amount of the discounts
3-13 applicable under this article.
3-14 Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) An
3-15 insurer shall revoke a discount made under this article if the
3-16 person covered by the discount, during the three years preceding
3-17 the date of the application:
3-18 (1) has been convicted of a violation of a traffic
3-19 safety regulation that involves a moving vehicle; or
3-20 (2) has been found at fault in more than one motor
3-21 vehicle accident.
3-22 (b) A motor vehicle insurance policy is not eligible for a
3-23 discount under this article if the person to be covered by the
3-24 discount has been convicted of an offense:
3-25 (1) relating to the operation of a motor vehicle under
3-26 Chapter 49, Penal Code; or
3-27 (2) under Article 6701l-1, Revised Statutes, or
4-1 relating to the operation of a motor vehicle under Section 49.04,
4-2 Penal Code, as those statutes existed before repeal by Chapter 900,
4-3 Acts of the 73rd Legislature, Regular Session, 1993.
4-4 (c) For purposes of Subsections (a) and (b) of this section,
4-5 a person is considered to have been convicted in a case if:
4-6 (1) a sentence is imposed; or
4-7 (2) the person receives community supervision.
4-8 (d) The commissioner by rule shall prescribe the manner in
4-9 which the information required under this section may be submitted
4-10 to the department.
4-11 SECTION 2. This Act takes effect September 1, 1995, and
4-12 applies only to a motor vehicle insurance policy that is delivered,
4-13 issued for delivery, or renewed on or after January 1, 1996. A
4-14 policy that is delivered, issued for delivery, or renewed before
4-15 January 1, 1996, is governed by the law as it existed immediately
4-16 before the effective date of this Act, and that law is continued in
4-17 effect for that purpose.
4-18 SECTION 3. The importance of this legislation and the
4-19 crowded condition of the calendars in both houses create an
4-20 emergency and an imperative public necessity that the
4-21 constitutional rule requiring bills to be read on three several
4-22 days in each house be suspended, and this rule is hereby suspended.