By Hochberg H.B. No. 1191
74R5321 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the issuance and expiration of a standard proof of
1-3 motor vehicle liability insurance form.
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 5.06-7 to read as follows:
1-7 Art. 5.06-7. ISSUANCE AND EXPIRATION OF STANDARD PROOF OF
1-8 MOTOR VEHICLE LIABILITY INSURANCE FORM. (a) This article applies
1-9 to a standard motor vehicle liability insurance form issued by an
1-10 insurer to be used to satisfy the requirements of:
1-11 (1) the Texas Motor Vehicle Safety-Responsibility Act
1-12 (Article 6701h, Vernon's Texas Civil Statutes); or
1-13 (2) Section 2a(d), Chapter 88, General Laws, Acts of
1-14 the 41st Legislature, 2nd Called Session, 1929 (Article 6675a-2a,
1-15 Vernon's Texas Civil Statutes).
1-16 (b) An insurer may not issue a standard proof of motor
1-17 vehicle liability insurance form before the insured has paid the
1-18 premium for the policy.
1-19 (c) If the insured pays the policy premium in full, the
1-20 insurer, not later than the 14th day after the date on which
1-21 payment is received, shall issue a standard proof of motor vehicle
1-22 liability insurance form effective until the last day of the policy
1-23 period.
1-24 (d) If the insured elects to pay the policy premium in
2-1 installments, the insurer, not later than the 14th day after the
2-2 date on which an installment is received, shall issue a standard
2-3 proof of motor vehicle liability insurance form effective until the
2-4 last day of the period covered by that installment.
2-5 SECTION 2. Section 1B(a), Texas Motor Vehicle
2-6 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
2-7 Statutes), is amended to read as follows:
2-8 (a) As a condition of operating a motor vehicle in this
2-9 state, the operator of the motor vehicle shall furnish, on request
2-10 of a peace officer or a person involved in an accident with the
2-11 operator:
2-12 (1) a liability insurance policy in at least the
2-13 minimum amounts required by this Act, or a photocopy of that
2-14 policy, that covers the vehicle;
2-15 (2) an unexpired <a> standard proof of motor vehicle
2-16 liability insurance form promulgated by the Texas Department of
2-17 Insurance and issued by a liability insurer that:
2-18 (A) includes the name of the insurer;
2-19 (B) includes the insurance policy number;
2-20 (C) includes the expiration date of the form
2-21 <policy period>;
2-22 (D) includes the name and address of each
2-23 insured;
2-24 (E) includes the policy limits or a statement
2-25 that the coverage of the policy complies with at least the minimum
2-26 amounts of liability insurance required by this Act; and
2-27 (F) includes the make and model of each covered
3-1 vehicle;
3-2 (3) an insurance binder that confirms that the
3-3 operator is in compliance with this Act;
3-4 (4) a certificate or copy of a certificate issued by
3-5 the department that shows the vehicle is covered by self-insurance;
3-6 (5) a certificate issued by the state treasurer that
3-7 shows that the owner of the vehicle has on deposit with the
3-8 treasurer money or securities in at least the amount required by
3-9 Section 25 of this Act;
3-10 (6) a certificate issued by the department that shows
3-11 that the vehicle is a vehicle for which a bond is on file with the
3-12 department as provided by Section 24 of this Act; or
3-13 (7) a copy of a certificate issued by the county judge
3-14 of a county in which the vehicle is registered that shows that the
3-15 owner of the vehicle has on deposit with the county judge cash or a
3-16 cashier's check in at least the amount required by Section 1A(b)(6)
3-17 of this Act.
3-18 SECTION 3. Section 1F(f), Texas Motor Vehicle
3-19 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
3-20 Statutes), is amended to read as follows:
3-21 (f) The following evidence of financial responsibility or a
3-22 photocopy of the evidence satisfies the requirement of Subsection
3-23 (e) of this section:
3-24 (1) a liability insurance policy in at least the
3-25 minimum amounts required by this Act to provide proof of financial
3-26 responsibility covering at least the period required by Subsection
3-27 (e) of this section;
4-1 (2) an unexpired <a> standard proof of motor vehicle
4-2 liability insurance form promulgated by the Texas Department of
4-3 Insurance and issued by a liability insurer that includes:
4-4 (A) the name of the insurer;
4-5 (B) the insurance policy number;
4-6 (C) the expiration date of the policy <period>,
4-7 which may not occur before the expiration of <must equal or exceed>
4-8 the period required by Subsection (e) of this section;
4-9 (D) the name and address of each insured; and
4-10 (E) the policy limits or a statement that the
4-11 coverage of the policy complies with at least the minimum amounts
4-12 of liability insurance required by this Act;
4-13 (3) an insurance binder that confirms to the
4-14 satisfaction of the court that the defendant is in compliance with
4-15 this Act for at least the period required by Subsection (e) of this
4-16 section;
4-17 (4) a copy of a certificate issued by the Department
4-18 of Public Safety that shows that the vehicle to be registered is
4-19 covered by self-insurance;
4-20 (5) a certificate issued by the state treasurer that
4-21 shows that the owner of the vehicle has on deposit with the
4-22 treasurer money or securities in at least the amount required by
4-23 Section 25 of this Act;
4-24 (6) a certificate issued by the Department that shows
4-25 that the vehicle is a vehicle for which a bond is on file with the
4-26 Department as provided by Section 24 of this Act; or
4-27 (7) a copy of a certificate issued by the county judge
5-1 of a county in which the vehicle is registered that shows that the
5-2 owner of the vehicle has on deposit with the county judge cash or a
5-3 cashier's check in at least the amount required by Section 1A(b)(6)
5-4 of this Act.
5-5 SECTION 4. Section 2a(d), Chapter 88, General Laws, Acts of
5-6 the 41st Legislature, 2nd Called Session, 1929 (Article 6675a-2a,
5-7 Vernon's Texas Civil Statutes), is amended to read as follows:
5-8 (d) The following evidence of financial responsibility or a
5-9 photocopy of the evidence satisfies the requirement of this
5-10 section:
5-11 (1) a liability insurance policy or liability
5-12 self-insurance or pool coverage document issued by a political
5-13 subdivision or governmental pool pursuant to the authority
5-14 contained in Chapter 791, Government Code <The Interlocal
5-15 Cooperation Act (Article 4413(32c), Vernon's Texas Civil
5-16 Statutes)>, Chapter 119, Local Government Code, or other applicable
5-17 law in at least the minimum amounts required by the Texas Motor
5-18 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
5-19 Civil Statutes) to provide proof of financial responsibility
5-20 covering at least the period required by Subsection (a) of this
5-21 section;
5-22 (2) an unexpired <a> standard proof of motor vehicle
5-23 liability insurance form promulgated by the Texas Department of
5-24 Insurance and issued by a liability insurer that includes:
5-25 (A) the name of the insurer;
5-26 (B) the insurance policy or other coverage
5-27 document number;
6-1 (C) the expiration date of the form <policy or
6-2 other coverage document coverage period>;
6-3 (D) the name and address of each insured or
6-4 covered person;
6-5 (E) the policy or other coverage document limits
6-6 or a statement that the coverage of the policy complies with at
6-7 least the minimum amounts of liability insurance required by the
6-8 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
6-9 Vernon's Texas Civil Statutes); and
6-10 (F) the make and model of each covered vehicle;
6-11 (3) an insurance binder that confirms to the
6-12 satisfaction of the county tax collector that the owner of the
6-13 motor vehicle to be registered is in compliance with the Texas
6-14 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
6-15 Texas Civil Statutes) for at least the period required by
6-16 Subsection (a) of this section;
6-17 (4) a copy of a certificate issued by the Department
6-18 of Public Safety that shows that the vehicle to be registered is
6-19 covered by self-insurance;
6-20 (5) a certificate issued by the state treasurer that
6-21 shows that the owner of the vehicle has on deposit with the
6-22 treasurer money or securities in at least the amount required by
6-23 Section 25 of the Texas Motor Vehicle Safety-Responsibility Act
6-24 (Article 6701h, Vernon's Texas Civil Statutes);
6-25 (6) a certificate issued by the Department of Public
6-26 Safety that shows that the vehicle is a vehicle for which a bond is
6-27 on file with the Department as provided by Section 24 of the Texas
7-1 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
7-2 Texas Civil Statutes); or
7-3 (7) a copy of a certificate issued by the county judge
7-4 of a county in which the vehicle is registered that shows that the
7-5 owner of the vehicle has on deposit with the county judge cash or a
7-6 cashier's check in at least the amount required by Section 1A(b)(6)
7-7 of the Texas Motor Vehicle Safety-Responsibility Act (Article
7-8 6701h, Vernon's Texas Civil Statutes).
7-9 SECTION 5. This Act takes effect September 1, 1995, and
7-10 applies only to a standard proof of motor vehicle liability
7-11 insurance form evidencing the existence of an insurance policy that
7-12 is delivered, issued for delivery, or renewed on or after January
7-13 1, 1996. A standard proof of motor vehicle liability insurance
7-14 form evidencing the existence of a policy that is delivered, issued
7-15 for delivery, or renewed before January 1, 1996, is governed by the
7-16 law as it existed immediately before the effective date of this
7-17 Act, and that law is continued in effect for that purpose.
7-18 SECTION 6. The importance of this legislation and the
7-19 crowded condition of the calendars in both houses create an
7-20 emergency and an imperative public necessity that the
7-21 constitutional rule requiring bills to be read on three several
7-22 days in each house be suspended, and this rule is hereby suspended.