By Conley                                              H.B. No. 322
       74R2287 PB-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the use of certain information in the determination of
    1-3  premium rates charged for motor vehicle insurance.
    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 5.01A to read as follows:
    1-7        Art. 5.01A.  USE OF CERTAIN INFORMATION PROHIBITED IN
    1-8  DETERMINING RATES.  (a)  In determining and prescribing premium
    1-9  rates under Article 5.01 of this code, the commissioner may not
   1-10  authorize an insurer to charge an insured a premium for motor
   1-11  vehicle insurance coverage, based solely on the location of the
   1-12  insured's primary residence, that is higher than that insured would
   1-13  otherwise be liable to pay for identical coverage at a different
   1-14  location.
   1-15        (b)  This article applies to motor vehicle insurance policies
   1-16  written by all insurers, as that term is used by Article
   1-17  5.01(a)  of this code, and includes a policy of motor vehicle
   1-18  insurance that is delivered, issued for delivery, or renewed in
   1-19  this state by a county mutual insurance company or by a surplus
   1-20  lines agent regulated under Article 1.14-2 of this code.
   1-21        (c)  Notwithstanding Subsection (a) or (b) of this article,
   1-22  the maximum rate established under this article shall be determined
   1-23  in the same manner as the upper limit of a flexibility band
   1-24  established under Article 5.101 of this code.  This subsection
    2-1  expires on the date Article 5.101 of this code expires under
    2-2  Section 1(b) of that article.  If Article 5.101 of this code is
    2-3  amended to remain in effect after December 31, 1995, without an
    2-4  expiration date, this subsection does not expire.
    2-5        SECTION 2.  Section 3, Article 5.101, Insurance Code, is
    2-6  amended by adding Subsection (k)  to read as follows:
    2-7        (k)  Notwithstanding any other provision of this article, in
    2-8  determining premium rates for motor vehicle insurance coverage
    2-9  under this chapter, an insurer may not charge an insured a premium
   2-10  for motor vehicle insurance coverage, based solely on the location
   2-11  of the insured's primary residence, that is higher than that
   2-12  insured would otherwise be liable to pay for identical coverage at
   2-13  a different location.  This subsection applies to motor vehicle
   2-14  insurance policies written by all insurers, as that term is used by
   2-15  Article 5.01(a)  of this code, and includes a policy of motor
   2-16  vehicle insurance that is delivered, issued for delivery, or
   2-17  renewed in this state by a county mutual insurance company or by a
   2-18  surplus lines agent regulated under Article 1.14-2 of this code.
   2-19        SECTION 3.  This Act takes effect September 1, 1995, and
   2-20  applies only to a policy of motor vehicle insurance that is
   2-21  delivered, issued for delivery, or renewed on or after January 1,
   2-22  1996.  A policy that is delivered, issued for delivery, or renewed
   2-23  before January 1, 1996, is governed by the law as it existed
   2-24  immediately before the effective date of this Act, and that law is
   2-25  continued in effect for that purpose.
   2-26        SECTION 4.  The importance of this legislation and the
   2-27  crowded condition of the calendars in both houses create an
    3-1  emergency and an imperative public necessity that the
    3-2  constitutional rule requiring bills to be read on three several
    3-3  days in each house be suspended, and this rule is hereby suspended.