By McCall H.B. No. 2743
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to motor vehicle insurance coverage and liability for
1-3 motor vehicle accidents; imposing civil and criminal penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Insurance Code is amended by adding Chapter
1-6 27 to read as follows:
1-7 CHAPTER 27. MOTOR VEHICLE ACCIDENT COMPENSATION
1-8 AND COST CONTAINMENT
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Art. 27.01. DEFINITIONS. In this chapter:
1-11 (1) "Accidental injury" means a bodily injury,
1-12 sickness, or disease that is not intentionally caused by the
1-13 injured person and that arises out of the use of a motor vehicle.
1-14 The term includes a death resulting from the injury, sickness, or
1-15 disease.
1-16 (2) "Dependent" means a resident relative of a person
1-17 who receives financial or services support from that person.
1-18 (3) "Economic loss" means medical expenses, loss of
1-19 income, and replacement services loss incurred by an injured person
1-20 as the result of an accidental injury to the injured person.
1-21 (4) "Injured person" means a person who sustains an
1-22 accidental injury.
1-23 (5) "Loss of income" means the loss, during the life
2-1 of an injured person, of income the injured person would have
2-2 earned from remunerative employment or self-employment but is
2-3 unable to earn because of disability resulting from accidental
2-4 injury.
2-5 (6) "Medical expenses" means reasonable expenses that
2-6 are incurred by an injured person, a parent or guardian on behalf
2-7 of an injured person who is a minor or who has a mental disability,
2-8 or a spouse on behalf of an injured person who is deceased, and
2-9 that are incurred for necessary medical, surgical, X-ray, dental,
2-10 ambulance, hospital, medical rehabilitation, and professional
2-11 nursing services expenses. The term includes expenses for
2-12 eyeglasses, hearing aids, and prosthetic devices.
2-13 (7) "Medical rehabilitation services" means services
2-14 that are reasonably necessary and are designed to:
2-15 (A) reduce the disability and dependence of an
2-16 injured person; and
2-17 (B) restore the person, to the extent reasonably
2-18 possible, to the person's level of physical functioning before the
2-19 accidental injury.
2-20 (8) "Motorcycle" has the meaning assigned by Section
2-21 1, Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
2-22 Vernon's Texas Civil Statutes).
2-23 (9) "Motor vehicle" has the meaning assigned by
2-24 Section 1, Texas Motor Vehicle Safety-Responsibility Act (Article
2-25 6701h, Vernon's Texas Civil Statutes).
3-1 (10) "Motor vehicle insurance" means insurance that
3-2 provides coverage for accidental injury resulting from the use of a
3-3 motor vehicle, including a policy issued under an assigned risk
3-4 plan established under Article 21.81, Insurance Code.
3-5 (11) "Motor vehicle insurer" means any insurer writing
3-6 motor vehicle insurance in this state, including:
3-7 (A) an insurance company;
3-8 (B) an interinsurance exchange;
3-9 (C) a mutual insurance company, including a
3-10 county mutual insurance company;
3-11 (D) a reciprocal insurance company or
3-12 interinsurance exchange;
3-13 (E) a Lloyd's plan insurer; and
3-14 (F) a person qualified as a self-insurer under
3-15 Section 34, Texas Motor Vehicle Safety-Responsibility Act (Article
3-16 6701h, Vernon's Texas Civil Statutes).
3-17 (12) "Noneconomic loss" means a detriment other than
3-18 economic loss for which damages would be recoverable under the law
3-19 of this state in the absence of this chapter, including pain,
3-20 suffering, inconvenience, and mental anguish.
3-21 (13) "Occupying" means, in the context of occupying a
3-22 motor vehicle:
3-23 (A) to be in or on a motor vehicle; or
3-24 (B) to be engaged in the immediate act of
3-25 entering into or alighting from the motor vehicle.
4-1 (14) "Owner" means:
4-2 (A) the person in whose name a motor vehicle has
4-3 been registered; or
4-4 (B) if no registration is in effect at the time
4-5 of an accident involving the motor vehicle:
4-6 (i) the person holding legal title to the
4-7 motor vehicle; or
4-8 (ii) if the motor vehicle is the subject
4-9 of a security agreement or lease with the option to purchase, a
4-10 debtor or lessee who has the right to possess the vehicle.
4-11 (15) "Person" includes an individual, corporation,
4-12 organization, or any other legal entity.
4-13 (16) "Personal compensation coverage" means coverage
4-14 that provides first party benefits in accordance with Article
4-15 27.31(a) of this code.
4-16 (17) "Personal compensation insured" means a person
4-17 entitled to personal compensation benefits under Article 27.33 of
4-18 this code.
4-19 (18) "Replacement services loss" means expenses
4-20 reasonably incurred in obtaining ordinary and necessary services
4-21 from a person who is not a member of the injured person's
4-22 household.
4-23 (19) "Resident relative" means a person who is related
4-24 by blood, marriage, or adoption to an insured or an injured person
4-25 and who:
5-1 (A) resides in the same household as the insured
5-2 or injured person; or
5-3 (B) temporarily resides in a place other than
5-4 the household of the insured or injured person, but who usually
5-5 makes a home in the same family unit.
5-6 (20) "Uninsured motor vehicle" means a motor vehicle
5-7 that is:
5-8 (A) not covered by motor vehicle insurance that
5-9 meets the requirements of the Texas Motor Vehicle
5-10 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
5-11 Statutes); or
5-12 (B) owned by a person whose identity is unknown
5-13 and unascertainable.
5-14 Art. 27.02. RULES. The commissioner may adopt rules for the
5-15 administration of this chapter.
5-16 Art. 27.03. CONSTRUCTION OF NONCONFORMING POLICIES. In any
5-17 controversy regarding the terms of a motor vehicle insurance
5-18 policy, a motor vehicle insurance policy that is delivered, issued
5-19 for delivery, or renewed in this state shall be construed to comply
5-20 with this chapter.
5-21 Art. 27.04. ARBITRATION. (a) A dispute between a motor
5-22 vehicle insurer and a personal compensation insured or a dependent
5-23 of the insured shall be submitted to arbitration on the request of
5-24 either party in accordance with this article.
5-25 (b) Each party shall select an arbitrator. The two
6-1 arbitrators selected by the parties shall select a third
6-2 arbitrator.
6-3 (c) A written decision signed by any two arbitrators is
6-4 binding on each party to the dispute.
6-5 Art. 27.05. USE OF MOTOR VEHICLE. (a) For the purposes of
6-6 this chapter, a person is using a motor vehicle if the person is
6-7 operating or occupying the vehicle.
6-8 (b) For the purposes of this chapter, a person is not using
6-9 a motor vehicle if the person is not occupying the vehicle and the
6-10 person is:
6-11 (1) manufacturing the vehicle;
6-12 (2) selling the vehicle;
6-13 (3) loading or unloading the vehicle; or
6-14 (4) maintaining the vehicle, including repairing,
6-15 servicing, or washing the vehicle.
6-16 Art. 27.06. UNITED STATES AS OWNER. This chapter does not
6-17 apply to the United States as an owner of a motor vehicle except
6-18 with respect to motor vehicles for which the United States has
6-19 elected to provide insurance.
6-20 Art. 27.07. DISCOVERY. In any dispute between a claimant
6-21 and an insurer regarding discovery of facts about an injured
6-22 person, a court of record may enter an order for discovery as
6-23 justice requires, unless the dispute is referred to arbitration
6-24 under Article 27.04 of this code.
6-25 Art. 27.08. DECLARATORY JUDGMENT. (a) The validity of this
7-1 chapter or any part of this chapter may be determined in an action
7-2 for declaratory judgment in a district court in Travis County under
7-3 Chapter 37, Civil Practice and Remedies Code.
7-4 (b) An appeal of a declaratory judgment, including an appeal
7-5 to the supreme court, holding this chapter or a portion of this
7-6 chapter valid or invalid under the state or federal constitution is
7-7 an accelerated appeal governed by Rule 42, Texas Rules of Appellate
7-8 Procedure.
7-9 SUBCHAPTER B. COVERAGE REQUIRED
7-10 Art. 27.21. PERSONAL COMPENSATION COVERAGE REQUIRED. Except
7-11 as provided by Subchapter J of this chapter, a motor vehicle
7-12 insurance policy delivered, issued for delivery, or renewed in this
7-13 state must provide coverage that complies with Article 27.31 of
7-14 this code.
7-15 Art. 27.22. BENEFITS PAYABLE WITHOUT REGARD TO FAULT. A
7-16 benefit under personal compensation coverage is payable without
7-17 regard to the fault of the personal compensation insured in the
7-18 accident that caused the injury.
7-19 Art. 27.23. OUT-OF-STATE CLAIMS AND COVERAGE. (a) A motor
7-20 vehicle insurance policy must provide personal compensation
7-21 coverage for the accidental injury of a personal compensation
7-22 insured that is sustained within the United States, the territories
7-23 or possessions of the United States, or Canada.
7-24 (b) If a motor vehicle covered under a motor vehicle
7-25 insurance policy is in an accident in another jurisdiction, the
8-1 policy must provide at least the minimum amount of insurance
8-2 coverage required by the laws of that jurisdiction.
8-3 (c) A motor vehicle insurer transacting business in this
8-4 state must file with the commissioner, as a condition of its
8-5 continued transaction of business in this state, a form approved by
8-6 the commissioner stating that any contract of primary motor vehicle
8-7 insurance, wherever issued, covering the use of a motor vehicle
8-8 while the motor vehicle is in this state, provides personal
8-9 compensation coverage, death benefits, and property damage
8-10 liability insurance at levels required by the law of this state. A
8-11 nonadmitted insurer may also file this form.
8-12 SUBCHAPTER C. COVERAGE; BENEFITS
8-13 Art. 27.31. PERSONAL COMPENSATION BENEFITS, DEATH BENEFIT,
8-14 AND LIABILITY COVERAGE. (a) A motor vehicle insurance policy must
8-15 provide at least $50,000 in first party personal compensation
8-16 benefits for each covered person in any one accident. Benefits
8-17 under this subsection include the following benefits for loss
8-18 resulting from accidental injury to a personal compensation
8-19 insured:
8-20 (1) medical expenses;
8-21 (2) loss of income as computed under Article 27.40 of
8-22 this code, not to exceed $200 per week; and
8-23 (3) replacement services loss, not to exceed $100 per
8-24 week.
8-25 (b) A motor vehicle insurer may offer a per-person
9-1 deductible applicable to benefits for medical expenses. The
9-2 deductible may be applicable only to claims of the named insured
9-3 and of a resident relative of the named insured. The named insured
9-4 may refuse a deductible offered under this subsection. The
9-5 acceptance of a deductible under this subsection by a named insured
9-6 is binding on a resident relative of the named insured.
9-7 (c) A motor vehicle policy must provide a death benefit in
9-8 the amount of $5,000 for the death of a person entitled to first
9-9 party personal compensation benefits under this subchapter. The
9-10 death benefit required by this subsection is in addition to first
9-11 party personal compensation benefits payable as a result of the use
9-12 of the motor vehicle and is payable to the estate of the deceased.
9-13 Art. 27.32. OTHER COVERAGE. (a) A motor vehicle insurer
9-14 may make available personal compensation insurance that provides
9-15 benefits in addition to and different from the benefits described
9-16 by Article 27.31(a) of this code.
9-17 (b) Subject to approval by the commissioner, a motor vehicle
9-18 insurer may make available personal compensation coverage without a
9-19 deductible or subject to a reasonable deductible different from the
9-20 deductible required under Article 27.31(b) of this code. A
9-21 deductible applicable to coverage for medical expenses is subject
9-22 to Article 27.31(b) of this code.
9-23 Art. 27.33. COVERED PERSONS. Personal compensation coverage
9-24 provides benefits for:
9-25 (1) any person identified by name as an insured under
10-1 the personal compensation insurance policy;
10-2 (2) any resident relative of the first person
10-3 identified by name as an insured under the policy; and
10-4 (3) any person who sustains an accidental injury in
10-5 this state:
10-6 (A) while occupying a motor vehicle insured by
10-7 the policy; or
10-8 (B) through being struck by a motor vehicle
10-9 insured by the policy.
10-10 Art. 27.34. PERSONS EXCLUDED FROM COVERAGE. (a) Except as
10-11 provided by Subsection (b) of this article, a motor vehicle
10-12 insurance policy may not provide personal compensation coverage for
10-13 a person who is injured while:
10-14 (1) committing a felony;
10-15 (2) voluntarily using a motor vehicle that the injured
10-16 person knows is stolen;
10-17 (3) driving while intoxicated;
10-18 (4) using a motor vehicle owned by, or furnished or
10-19 available for the regular use of, the injured person or the injured
10-20 person's resident relative, if the motor vehicle is not described
10-21 in the policy under which a claim is made and is not a newly
10-22 acquired or replacement motor vehicle covered under the terms of
10-23 the policy;
10-24 (5) using a motor vehicle that is not covered by motor
10-25 vehicle insurance that meets the requirements of the Texas Motor
11-1 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
11-2 Civil Statutes), if the injured person is not a named insured or a
11-3 resident relative of a named insured; or
11-4 (6) guilty of intentional misconduct.
11-5 (b) A motor vehicle insurance policy may include personal
11-6 compensation coverage for a person mentioned in this article only
11-7 if language clearly manifesting an intent to provide that coverage
11-8 is included in the policy.
11-9 (c) In this article:
11-10 (1) "Intentional misconduct" means an act or omission
11-11 by an injured person that causes or substantially contributes to
11-12 harm and that the actor commits for the purpose of causing harm or
11-13 knowing that harm is substantially certain to follow. An act or
11-14 omission is not intentional misconduct:
11-15 (A) solely because the act was intentional or
11-16 committed with the knowledge that the act creates a grave risk of
11-17 causing harm; or
11-18 (B) if committed for the purpose of averting
11-19 bodily harm to any person.
11-20 (2) "Intoxicated" has the meaning assigned by Section
11-21 49.01, Penal Code.
11-22 (d) For purposes of this article, if a peace officer
11-23 requests that an injured person submit to a test of blood, breath,
11-24 or urine in connection with the accident, the person shall be
11-25 considered to have been driving while intoxicated at the time of
12-1 the accident if the person:
12-2 (1) refuses to submit to the test;
12-3 (2) does not submit to the test and does not expressly
12-4 agree to submit to the test; or
12-5 (3) refuses to complete the test.
12-6 Art. 27.35. MEDICAL EXPENSE BENEFIT PAYMENT LIMITS. (a) A
12-7 person may not require, request, or accept a payment for a
12-8 treatment, accommodation, product, or service for an injured person
12-9 who is a personal compensation insured if the amount of the payment
12-10 exceeds the amount authorized by this article.
12-11 (b) Payment for a treatment, accommodation, product, or
12-12 service may not exceed the lesser of:
12-13 (1) the provider's usual and customary charge; or
12-14 (2) 110 percent of the fee schedule, prevailing
12-15 charge, recommended fee, inflation index charge, or
12-16 diagnostic-related groups payment that applies to the particular
12-17 specialty service and that was determined to be applicable in this
12-18 state under the Medicare program created under Part A and Part B,
12-19 Title XVII, Social Security Act (42 U.S.C. Section 1395 et seq.)
12-20 for comparable treatments, accommodations, products, or services at
12-21 the time and place the treatments, accommodations, products, or
12-22 services were provided.
12-23 (c) If a fee schedule, prevailing charge, recommended fee,
12-24 inflation index charge, or diagnostic-related groups payment has
12-25 not been computed under the Medicare program for a treatment,
13-1 accommodation, product, or service, the amount of the payment may
13-2 not exceed 80 percent of the provider's usual and customary charge
13-3 for that treatment, accommodation, product, or service.
13-4 (d) This article does not require payment of pass through
13-5 costs.
13-6 Art. 27.36. PAYMENT FOR PRIVATE ROOM EXCLUDED. The medical
13-7 expense benefit under personal compensation coverage does not
13-8 include any portion of a charge for a room in a hospital, clinic,
13-9 convalescent or nursing home, extended care facility, or any
13-10 similar facility in excess of the reasonable and customary charge
13-11 for semi-private accommodations, unless a private accommodation is
13-12 determined to be medically required.
13-13 Art. 27.37. PAYMENT FOR EXPERIMENTAL TREATMENT, SERVICE,
13-14 PRODUCT, OR PROCEDURE EXCLUDED. The medical expense benefit under
13-15 personal compensation coverage does not include payment for a
13-16 treatment, service, product, or procedure that is:
13-17 (1) experimental in nature;
13-18 (2) for research or not primarily designed to serve a
13-19 medical purpose; or
13-20 (3) not commonly and customarily recognized throughout
13-21 the medical profession and within the United States as appropriate
13-22 for treatment of the injury.
13-23 Art. 27.38. MEDICAL EXPENSE BENEFIT; LIMITATION. The
13-24 medical expense benefit under personal compensation coverage is not
13-25 payable for medical expenses that accrue after the second
14-1 anniversary of the date of the accident.
14-2 Art. 27.39. REVIEW OF MEDICAL EXPENSES. A motor vehicle
14-3 insurer may review medical expenses prior to, during, and after the
14-4 course of treatment of an injured person to ensure that the
14-5 expenses are reasonable and necessary and may submit the expenses
14-6 to peer review under Subchapter F of this chapter.
14-7 Art. 27.40. COMPUTATION OF LOSS OF INCOME BENEFIT. (a) In
14-8 computing the amount of loss of income of an injured person, it is
14-9 presumed, absent a contrary showing, that the injured person's loss
14-10 of income for a period is the product of:
14-11 (1) the number of weeks in that period the injured
14-12 person probably would have worked had the injured person not been
14-13 disabled; and
14-14 (2) the injured person's probable weekly income if
14-15 employed as determined under Subsections (c), (d), (e), and (f) of
14-16 this article.
14-17 (b) Loss of income does not include income for any period in
14-18 which the injured person probably would not have worked had the
14-19 injured person not been disabled.
14-20 (c) For an injured person who was regularly employed or
14-21 self-employed or had been regularly employed or self-employed
14-22 during the three months before the accident, the injured person's
14-23 probable weekly income if employed is the person's probable annual
14-24 income divided by 52. The injured person's probable annual income
14-25 is the greater of:
15-1 (1) 12 times the monthly gross income earned by the
15-2 injured person from work in the month before the month in which the
15-3 accident resulting in injury occurred; or
15-4 (2) the average income earned by the injured person
15-5 during the two calendar years preceding the year in which the
15-6 accident occurred.
15-7 (d) For an injured person who was seasonally or irregularly
15-8 employed at the time of the accident resulting in injury, or who
15-9 had been unemployed for at least the three months before the
15-10 accident but less than the two years before the accident, the
15-11 injured person's probable weekly income if employed is the total
15-12 gross income of the injured person during the prior two years
15-13 divided by the number of weeks in which the injured person worked
15-14 during that period.
15-15 (e) For an injured person who had not been remuneratively
15-16 employed or self-employed within the two years next preceding the
15-17 accident resulting in injury, the injured person's probable weekly
15-18 income if employed is presumed to be zero. The injured person may
15-19 rebut the presumption by proof that the person would have been
15-20 employed during the first year after the accident.
15-21 (f) In the case of an injured person who rebuts the
15-22 presumption established by Subsection (e) of this article, the
15-23 probable weekly income if employed is presumed not to exceed 80
15-24 percent of the average weekly gross income of a production or
15-25 nonsupervisory worker in the private nonfarm economy in the state
16-1 in which the injured person was domiciled during the year preceding
16-2 the year in which the accident occurred.
16-3 (g) Except as provided by Subsection (h) of this article, if
16-4 an injured person is disabled from performing one or more but less
16-5 than all duties of the injured person's usual and customary
16-6 occupation, the injured person's loss of income does not include
16-7 any portion of the injured person's probable income that the
16-8 injured person reasonably could earn despite the disability.
16-9 (h) If it is more reasonable for the injured person to
16-10 engage in available substitute work than to perform the person's
16-11 usual and customary occupation, the loss of income shall be reduced
16-12 by:
16-13 (1) 90 percent of any income from substitute work
16-14 actually performed; and
16-15 (2) 100 percent of any income the injured person would
16-16 have earned in available appropriate substitute work that the
16-17 injured person was capable of performing but unreasonably failed to
16-18 perform.
16-19 (i) Loss of income does not include any loss of income
16-20 occurring after the death of the injured person, without regard to
16-21 the cause of the loss.
16-22 Art. 27.41. REPLACEMENT SERVICES BENEFIT; LIMITATION. (a)
16-23 An injured person is not entitled to the benefit for replacement
16-24 services under compensation coverage during a period in which the
16-25 person is receiving the benefit for loss of income.
17-1 (b) The replacement services benefit does not include loss
17-2 that accrues after the death of the injured person.
17-3 (c) The replacement services benefit is not payable for loss
17-4 that accrues after the second anniversary of the date of the
17-5 accident.
17-6 Art. 27.42. DEATH BENEFIT; LIMITATION. A death benefit
17-7 under personal compensation coverage may be paid only if the death
17-8 of an injured person occurs before the first anniversary of an
17-9 accidental injury that directly and proximately caused the death.
17-10 SUBCHAPTER D. PAYMENT OF PERSONAL COMPENSATION BENEFITS
17-11 Art. 27.51. PROMPT PAYMENT OF CLAIMS. Except as provided by
17-12 Subchapter F of this chapter, Article 21.55 of this code applies to
17-13 payment of claims under this chapter.
17-14 Art. 27.52. PERSONS TO WHOM PAYMENT IS MADE. A motor
17-15 vehicle insurer shall pay personal compensation benefits, at the
17-16 option of the insurer, to:
17-17 (1) the injured person;
17-18 (2) the parent or guardian of the injured person, if
17-19 the injured person is a minor or is incompetent;
17-20 (3) a dependent, executor, or administrator of an
17-21 injured person who is deceased; or
17-22 (4) the person or organization rendering the services
17-23 for which payment is due.
17-24 Art. 27.53. VERIFICATION OF ENTITLEMENT TO BENEFITS;
17-25 EMPLOYER'S REPORT. (a) On request of an insurer providing
18-1 benefits under this chapter, an employer shall furnish pertinent
18-2 information regarding an employee who has filed a claim for
18-3 personal compensation benefits.
18-4 (b) Information provided under this article shall be
18-5 provided on a form approved by the commissioner.
18-6 Art. 27.54. VERIFICATION OF ENTITLEMENT TO BENEFITS; MEDICAL
18-7 REPORT; ACCESS TO MEDICAL DOCUMENTS. (a) On the request of an
18-8 insurer providing benefits under this chapter, a physician,
18-9 hospital, clinic, or other health care provider that, before or
18-10 after an accidental injury for which a claim is made, provides
18-11 products, services, treatments, procedures, or accommodations to
18-12 the injured person in relation to any injury, or in relation to a
18-13 condition that the injured person claims is connected with the
18-14 injury, shall furnish a written report to the insurer in accordance
18-15 with this article.
18-16 (b) A report made under this article must include the
18-17 injured person's medical history, condition, and treatment, and the
18-18 dates and costs of the treatment.
18-19 (c) A report made under this article must be accompanied by
18-20 a statement, executed under penalty of perjury, indicating, to the
18-21 best of the knowledge and belief of the person executing the
18-22 statement, whether the treatment or services rendered for the
18-23 accidental injury were reasonable and necessary for the injury and
18-24 identifying the portion of the expenses for the treatment or
18-25 services that was incurred as a result of the accidental injury.
19-1 (d) A physician, hospital, clinic, or other health care
19-2 provider shall promptly produce and permit the inspection and
19-3 copying of its records regarding the injured person's history,
19-4 condition, and treatment, and the dates and costs of treatment or
19-5 services.
19-6 (e) A person may not bring a cause of action against a
19-7 physician, hospital, clinic, or other health care provider for
19-8 complying with the provisions of this article. Section 5.08,
19-9 Medical Practice Act (Article 4495b, Vernon's Texas Civil
19-10 Statutes), does not apply to information provided under this
19-11 article.
19-12 (f) An insurer requesting a report or record under this
19-13 article shall pay all reasonable costs connected with providing the
19-14 report or record.
19-15 (g) This article does not authorize the disclosure of
19-16 information that is confidential under federal law.
19-17 SUBCHAPTER E. COORDINATION OF COVERAGE AND BENEFITS
19-18 Art. 27.61. PRIORITY FOR PAYMENT OF BENEFITS. (a) A person
19-19 who is entitled to personal compensation benefits is entitled to at
19-20 least the personal compensation coverage under a policy in which
19-21 the person is a named insured or the resident relative of a named
19-22 insured. The motor vehicle insurer shall pay personal compensation
19-23 benefits for the claims of the named insured or a resident relative
19-24 of the named insured before paying other claims arising from an
19-25 accident.
20-1 (b) If the limits of the personal compensation benefits for
20-2 the accident are not exhausted after payment of claims under
20-3 Subsection (a) of this article, the insurer shall pay personal
20-4 compensation benefits for the claims of other personal compensation
20-5 insureds.
20-6 (c) If more than one motor vehicle insurer is obligated to
20-7 pay personal compensation benefits, the insurer against whom the
20-8 claim is first made shall pay the claim. That insurer may recover
20-9 a pro rata contribution for the payment and processing of the claim
20-10 from any other motor vehicle insurer obligated to pay the benefits.
20-11 In recovering a contribution under this subsection, the insurer has
20-12 the same priority as the injured person would have had under this
20-13 article.
20-14 Art. 27.62. PARKED VEHICLES; EXCLUSION. For purposes of
20-15 determining whether a motor vehicle insurance policy provides
20-16 coverage for a personal compensation insured other than the named
20-17 insured or a resident relative of a named insured for a particular
20-18 accident, a motor vehicle described by the policy is not involved
20-19 in the accident if the vehicle is parked and unoccupied during the
20-20 accident, unless the manner in which the vehicle is parked causes
20-21 an unreasonable risk of injury.
20-22 Art. 27.63. MULTIPLE COVERAGES. (a) The limit of the
20-23 policy applying to the vehicle involved in the accident for a
20-24 coverage or benefit under a personal compensation insurance policy
20-25 may not be added to, combined with, or otherwise stacked on the
21-1 policy limit for any other coverage or benefit provided under that
21-2 policy or another policy to determine the total limit of coverage
21-3 available to an injured person for an accident. This subsection
21-4 applies notwithstanding the number of:
21-5 (1) motor vehicles involved in the accident;
21-6 (2) personal compensation insureds;
21-7 (3) claims made for the accident;
21-8 (4) motor vehicles or premiums shown on the policies;
21-9 or
21-10 (5) premiums paid.
21-11 (b) A policy may provide that if two or more policies apply
21-12 to the same accident, and none of the vehicles covered by the
21-13 policy are involved in the accident, the highest policy limit for a
21-14 coverage or benefit applicable to the accident is the policy limit
21-15 for that coverage or benefit in the policy that provides the
21-16 highest limit for that coverage or benefit.
21-17 Art. 27.64. COLLATERAL SOURCES OF BENEFITS. (a) A motor
21-18 vehicle insurer shall pay personal compensation benefits to a
21-19 personal compensation insured, notwithstanding coverage other than
21-20 personal compensation coverage that provides benefits for the same
21-21 injury, except as provided by Subsection (b) of this article.
21-22 (b) The amount of personal compensation benefits is reduced
21-23 by the amount of a benefit paid under Title 5, Labor Code.
21-24 (c) Except as provided by Subsection (b) of this article,
21-25 coverage other than personal compensation coverage is excess
22-1 coverage for any accidental injury covered by a personal
22-2 compensation insurance policy.
22-3 SUBCHAPTER F. COST CONTAINMENT; PEER REVIEW
22-4 Art. 27.71. MANAGED CARE. (a) Except as provided by
22-5 Subsection (b) of this article, a motor vehicle insurer may use a
22-6 managed care system to pay for medical expense benefits or may
22-7 require a personal compensation insured to obtain health care
22-8 through a managed care system designed by the insurer if:
22-9 (1) the commissioner approves the use of the managed
22-10 care system;
22-11 (2) the named insured elected to be subject to a
22-12 managed care system at the time the policy was purchased; and
22-13 (3) the policy premium is reduced in accordance with
22-14 rules adopted by the board.
22-15 (b) A motor vehicle insurer may not require a personal
22-16 compensation insured other than the named insured or a resident
22-17 relative of the named insured to obtain health care through a
22-18 managed care system.
22-19 (c) For purposes of this article, "managed care system"
22-20 includes a health maintenance or preferred provider organization.
22-21 Art. 27.72. SAFETY EQUIPMENT. Each motor vehicle insurer
22-22 may adopt an actuarially sound program that provides incentives, in
22-23 the form of increased benefits, reduced premiums, or other means,
22-24 for insureds to install, maintain, and use injury reducing devices,
22-25 including seat and harness belts, air bags, and child restraint
23-1 systems.
23-2 Art. 27.73. PEER REVIEW. (a) A motor vehicle insurer that
23-3 provides personal compensation coverage shall contract with a peer
23-4 review organization, either jointly with other insurers or
23-5 individually.
23-6 (b) This article does not apply to a self-insurer.
23-7 Art. 27.74. POWERS OF PEER REVIEW ORGANIZATION. (a) A peer
23-8 review organization may determine whether:
23-9 (1) health care treatment and services provided to an
23-10 injured person are medically necessary and medically appropriate
23-11 and meet professional standards of performance; and
23-12 (2) the injury for which health care treatment or
23-13 services are provided was caused by a motor vehicle accident.
23-14 (b) A peer review organization may not mediate disputes over
23-15 appropriate charges, costs, or payments and may not administer
23-16 claims for a motor vehicle insurer.
23-17 Sec. 27.75. CONFLICT OF INTEREST. (a) A peer review
23-18 organization owned in whole or in part by a motor vehicle insurer
23-19 may not review treatment or services for which that insurer has
23-20 been billed.
23-21 (b) An employee of a peer review organization may not review
23-22 treatment or services provided to an injured person by an
23-23 institution or agency in which the peer review organization has a
23-24 financial interest.
23-25 Art. 27.76. REFERRAL OF BILL. (a) A motor vehicle insurer
24-1 may refer a health care provider's bill to a peer review
24-2 organization if the insurer believes that a peer review
24-3 organization should evaluate it under Article 27.74 of this code.
24-4 (b) A referral under this article must be made not later
24-5 than the 90th day after the date the motor vehicle insurer receives
24-6 the health care provider's bill and reasonable documentation
24-7 supporting the bill. At the time of the referral, the insurer
24-8 shall notify the health care provider of the referral in writing.
24-9 Art. 27.77. EFFECT OF REFERRAL. (a) Notwithstanding any
24-10 other provision of this code, if a motor vehicle insurer makes a
24-11 referral under Article 27.76 of this code not later than the 30th
24-12 day after the date the insurer receives the bill for medical
24-13 treatment and reasonable documentation supporting the bill, the
24-14 insurer is not required to pay the health care provider until a
24-15 determination has been made by the peer review organization.
24-16 (b) If the motor vehicle insurer makes the referral after
24-17 the 30th day, the insurer shall pay the health care provider's
24-18 bill.
24-19 Art. 27.78. REQUEST FOR INFORMATION; INDEPENDENT MEDICAL
24-20 EXAMINATION. (a) Not later than the 30th day after the date a
24-21 peer review organization receives a referral under Article 27.76 of
24-22 this code, the organization shall request in writing, from the
24-23 health care provider, the records and documents necessary for its
24-24 review.
24-25 (b) The peer review organization shall permit the health
25-1 care provider to submit additional information during the review
25-2 process.
25-3 (c) The peer review organization may order an independent
25-4 medical examination of the injured person if the examination is
25-5 necessary for the peer review organization to determine whether the
25-6 injuries for which treatment and services are provided were caused
25-7 by a motor vehicle accident. If an injured person unreasonably
25-8 refuses to submit to the examination, the motor vehicle insurer may
25-9 suspend payment of benefits to that person that accrue after the
25-10 date of the refusal.
25-11 Art. 27.79. INITIAL DETERMINATION. (a) A peer review
25-12 organization shall make an initial determination not later than the
25-13 30th day after the later of:
25-14 (1) the receipt of information requested by the
25-15 organization under Article 27.78 of this code; or
25-16 (2) the receipt of additional information submitted by
25-17 the health care provider under that article.
25-18 (b) A peer review organization's initial determination shall
25-19 be made by a licensed practitioner of the same specialty as the
25-20 health care provider who provided the care that is the subject of
25-21 the review or by a licensed practitioner who has had experience
25-22 providing and prescribing the care that is the subject of the
25-23 review.
25-24 (c) Not later than the fifth business day after the date of
25-25 determination, the peer review organization shall provide to the
26-1 motor vehicle insurer, health care provider, and injured person a
26-2 written analysis of its decision. The analysis must include the
26-3 reasons supporting the decision.
26-4 Art. 27.80. RECONSIDERATION OF DETERMINATION. (a) A motor
26-5 vehicle insurer, health care provider, or injured person may
26-6 request reconsideration of the initial determination made by a peer
26-7 review organization. A request made under this subsection must be
26-8 made in writing not later than the 30th day after the date the
26-9 analysis of the initial determination is provided under Article
26-10 27.79(c) of this code.
26-11 (b) The reconsideration of the initial determination shall
26-12 be made by a licensed practitioner of the same specialty as the
26-13 health care provider. The person making the reconsideration may not
26-14 be the same person who made the peer review organization's initial
26-15 determination.
26-16 (c) The reconsideration of the initial determination must be
26-17 based on the information submitted with respect to the initial
26-18 determination, any new information found in medical records, or
26-19 additional evidence submitted by the person or entity requesting
26-20 the reconsideration.
26-21 (d) The peer review organization shall complete a
26-22 reconsideration under this article not later than the 30th day
26-23 after the later of the date on which:
26-24 (1) the review was requested; or
26-25 (2) the organization received the new or additional
27-1 evidence under Subsection (c) of this article.
27-2 Art. 27.81. JUDICIAL REVIEW. Following a reconsideration by
27-3 a peer review organization under Article 27.80 of this code, a
27-4 motor vehicle insurer, health care provider, or injured person may
27-5 obtain judicial review of the determination. A person must request
27-6 reconsideration of the determination under this article before
27-7 commencing any action for review of the determination in court.
27-8 Art. 27.82. PAYMENT FOLLOWING DETERMINATION. (a) If a peer
27-9 review organization determines that health care treatment or
27-10 services provided to an injured person conformed to professional
27-11 standards of performance and were medically necessary and
27-12 appropriate, the motor vehicle insurer shall pay to the health care
27-13 provider the outstanding amount plus interest, at the rate of 10
27-14 percent per annum, on any amount withheld by the insurer.
27-15 (b) If the determination of a peer review organization is
27-16 reviewed by a court, and if the court determines that health care
27-17 treatment or services provided to an injured person conformed to
27-18 professional standards of performance and were medically necessary
27-19 and appropriate, the motor vehicle insurer shall pay to the health
27-20 care provider:
27-21 (1) any outstanding amount plus interest, at the rate
27-22 of 10 percent per annum;
27-23 (2) the health care provider's costs in participating
27-24 in the review; and
27-25 (3) reasonable attorney's fees and costs incurred by
28-1 the health care provider with respect to the judicial review of the
28-2 peer review organization's determination.
28-3 (c) If a peer review organization, or a court reviewing a
28-4 peer review organization determination, determines that health care
28-5 treatment or services provided did not conform to professional
28-6 standards of performance or were not medically necessary or
28-7 appropriate, or that future provision of the health care treatment
28-8 or services would be medically unnecessary or inappropriate, the
28-9 motor vehicle insurer may not pay the health care provider for the
28-10 medically unnecessary, inappropriate, or unprofessionally provided
28-11 health care treatment or services. If the insurer has paid the
28-12 health care provider, the provider must return, not later than the
28-13 30th day after the date the provider receives notice of the
28-14 determination, the amount paid plus interest at the rate of 10
28-15 percent per annum. An injured person is not responsible for any
28-16 amount the health care provider fails to pay under this subsection.
28-17 SUBCHAPTER G. RIGHTS AND DUTIES OF PERSONAL COMPENSATION
28-18 INSUREDS
28-19 Art. 27.91. ASSIGNMENT OR GARNISHMENT OF PERSONAL
28-20 COMPENSATION BENEFITS. (a) Personal compensation benefits, other
28-21 than those for medical expenses, are exempt from garnishment,
28-22 attachment, execution, and any other process or claim to the same
28-23 extent that wages or earnings are exempt under law.
28-24 (b) An agreement to assign a right to a personal
28-25 compensation benefit, other than a medical benefit, that is payable
29-1 in the future is unenforceable except to the extent that:
29-2 (1) the assignment compensates the assignee for a
29-3 product, service, or accommodation provided or to be provided by
29-4 the assignee; or
29-5 (2) the assignment is of benefits for loss of income
29-6 or replacement services and is assigned to pay alimony, spousal
29-7 maintenance, or child support.
29-8 Art. 27.92. CANCELLATION, NONRENEWAL, OR PREMIUM INCREASE
29-9 FOLLOWING CLAIM. (a) A motor vehicle insurer may not cancel,
29-10 refuse to renew, or increase the premium for a personal
29-11 compensation insurance policy because of a claim for personal
29-12 compensation benefits if a personal compensation insured was not at
29-13 fault in the accident from which the claim arose.
29-14 (b) A person may not bring a civil action for equitable
29-15 relief from or civil damages for a violation of this article.
29-16 Art. 27.93. ACTION FOR BENEFITS. Unless arbitration is
29-17 elected under Article 27.04 of this code, a person must bring an
29-18 action against a motor vehicle insurer for unpaid personal
29-19 compensation benefits:
29-20 (1) not later than the second anniversary of the date
29-21 that the accidental injury occurred; or
29-22 (2) if some benefits have been paid, not later than
29-23 the second anniversary of the date of the last payment of benefits.
29-24 Art. 27.94. MENTAL AND PHYSICAL EXAMINATIONS. (a) If the
29-25 mental or physical condition of an injured person is material to a
30-1 claim that has been made or may be made for personal compensation
30-2 benefits, the injured person shall submit to reasonable mental or
30-3 physical examinations by a physician or physicians designated by
30-4 the motor vehicle insurer at a reasonably convenient time and
30-5 location.
30-6 (b) A personal compensation insurance policy may include a
30-7 provision stating the substance of Subsection (a) of this article.
30-8 Art. 27.95. MEDICAL OR REHABILITATION SERVICES. A motor
30-9 vehicle insurer may suspend payment of future benefits to an
30-10 injured person if:
30-11 (1) the insurer has requested that the person submit
30-12 to medical or rehabilitation services; and
30-13 (2) the person unreasonably refuses to submit to the
30-14 services.
30-15 SUBCHAPTER H. FRAUDULENT CLAIMS
30-16 Art. 27.101. FRAUDULENT CLAIMS. A person may not:
30-17 (1) present or cause to be presented, or conspire to
30-18 present or cause to be presented, a statement in connection with a
30-19 claim for a personal compensation benefit that the person knows
30-20 contains false, incomplete, or misleading information concerning a
30-21 matter that is material to the claim; or
30-22 (2) prepare or make a statement that the person
30-23 intends to be presented to another person in connection with a
30-24 claim for a personal compensation benefit that the person knows
30-25 contains false, incomplete, or misleading information concerning a
31-1 matter that is material to the claim.
31-2 Art. 27.102. CRIMINAL OFFENSE. (a) A person commits an
31-3 offense if the person violates Article 27.101 of this code with the
31-4 intent to injure, defraud, or deceive another person.
31-5 (b) An offense under this article is punishable by a fine of
31-6 not more than $10,000.
31-7 Art. 27.103. CIVIL RECOVERY. (a) A person who has been
31-8 injured by a violation of Article 27.101 of this code may bring an
31-9 action to recover damages against the person who committed the
31-10 violation.
31-11 (b) If a person violates Article 27.101 of this code with
31-12 the intent to injure, defraud, or deceive another person, a person
31-13 who has been injured by the violation may recover:
31-14 (1) actual damages;
31-15 (2) a penalty not to exceed twice the amount of actual
31-16 damages; and
31-17 (3) costs and attorney's fees incurred in bringing the
31-18 action.
31-19 SUBCHAPTER I. TORT LIABILITY
31-20 Art. 27.111. TORT ACTION LIMITED. (a) Except as provided
31-21 by this subchapter and Subchapter J of this chapter, a person may
31-22 not recover damages for an accidental injury arising, in whole or
31-23 in part, out of the use of a motor vehicle in this state.
31-24 (b) Except as provided by this subchapter and Subchapter J
31-25 of this chapter, any person involved in a motor vehicle accident in
32-1 this state is subject to the tort and liability limitations of this
32-2 subchapter.
32-3 (c) This subchapter applies only to a claim for damages for
32-4 economic or noneconomic loss resulting from an accidental injury
32-5 caused by the negligent conduct or intentional misconduct of
32-6 another person, including a claim for loss of consortium or
32-7 companionship and any other claim brought by a person other than
32-8 the injured person.
32-9 (d) This subchapter applies to a claim made against a person
32-10 who, in the absence of this subchapter, would be vicariously liable
32-11 for the negligent conduct or intentional misconduct of another
32-12 person.
32-13 Art. 27.112. OWNER OF UNINSURED MOTOR VEHICLE.
32-14 Notwithstanding Articles 27.113 and 27.114 of this code, the owner
32-15 of an uninsured motor vehicle may not recover damages for loss
32-16 arising out of the use of the vehicle if personal compensation
32-17 benefits would have been provided had the owner complied with the
32-18 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
32-19 Vernon's Texas Civil Statutes).
32-20 Art. 27.113. UNCOMPENSATED ECONOMIC LOSS. (a) A person may
32-21 bring a cause of action to recover damages for uncompensated
32-22 economic loss arising, in whole or in part, out of the use of a
32-23 motor vehicle.
32-24 (b) In this article, "uncompensated economic loss" means the
32-25 portion of economic loss arising out of an accidental injury that
33-1 exceeds the sum of the personal compensation benefits that the
33-2 injured person is entitled to receive and benefits paid by other
33-3 persons for the same injury. The term does not include the amount
33-4 of any deductible under a personal compensation insurance policy.
33-5 Art. 27.114. MISCONDUCT. (a) A person may bring a cause of
33-6 action to recover damages for accidental injury against a person
33-7 who:
33-8 (1) caused the injury; and
33-9 (2) is convicted, in connection with the accident, of
33-10 a felony or an offense involving a motor vehicle under Chapter 49,
33-11 Penal Code.
33-12 (b) A person who provides personal compensation benefits or
33-13 provides other benefits for the same injury as described by Article
33-14 27.64 of this code is subrogated to the claim of the injured person
33-15 against the convicted person.
33-16 (c) An insurance policy, including a policy that provides
33-17 liability coverage or uninsured motorist insurance, may not provide
33-18 liability coverage for damages recovered under this article.
33-19 Art. 27.115. SERIOUS INJURY. (a) A person may bring a
33-20 cause of action for a serious injury arising, in whole or in part,
33-21 out of the use of a motor vehicle.
33-22 (b) In an action in which the defendant contends that the
33-23 injured person's injury is not a serious injury, either party may
33-24 file a motion seeking a court order determining that issue. The
33-25 court shall decide as a matter of law whether the injury is a
34-1 serious injury.
34-2 (c) The trial of any case in which a motion is filed under
34-3 Subsection (b) of this article may not begin until the 30th day
34-4 after the date on which the court makes a determination on the
34-5 motion. The court shall order a continuance of the case if
34-6 necessary to comply with this subsection.
34-7 (d) If the court finds that the party against whom an order
34-8 is rendered under Subsection (b) of this section did not have a
34-9 reasonable basis for its asserting or contesting the motion, the
34-10 court shall assess against that party reasonable costs and
34-11 attorney's fees, based on actual time, incurred by the prevailing
34-12 party to obtain the judgment.
34-13 (e) In this article:
34-14 (1) "Defendant" means a person from whom damages are
34-15 sought for an accidental injury arising, in whole or in part, out
34-16 of the use of a motor vehicle, including a counterdefendant,
34-17 cross-defendant, or third-party defendant.
34-18 (2) "Serious injury" means an accidental injury that
34-19 results in death, dismemberment, a significant and permanent loss
34-20 of an important body function caused by a continuing physical
34-21 injury, or significant and permanent disfigurement that is usually
34-22 visible while the injured person is clothed. The term does not
34-23 include a soft tissue injury.
34-24 Art. 27.116. INSURER'S RIGHT OF SUBROGATION. (a) A motor
34-25 vehicle insurer does not have a right to subrogation for personal
35-1 compensation benefits except as provided by this article and
35-2 Article 27.114 of this code.
35-3 (b) A motor vehicle insurer is subrogated, to the extent of
35-4 its obligation to pay personal compensation benefits, to a personal
35-5 compensation insured's rights under Article 27.114 of this code and
35-6 against any person who is not affected by the limitations on tort
35-7 rights and liabilities under this subchapter.
35-8 Art. 27.117. EFFECT OF CLAIM FOR DAMAGES ON PAYMENT OF
35-9 COMPENSATION BENEFITS. (a) Except as provided by this article, a
35-10 motor vehicle insurer shall pay personal compensation due without
35-11 regard to the value of a claim for damages for the accidental
35-12 injury.
35-13 (b) After recovery under a claim for damages is realized, a
35-14 motor vehicle insurer may subtract the amount of the net recovery
35-15 from the total amount of personal compensation to be paid.
35-16 (c) If payment under the personal compensation insurance
35-17 policy has already been made, the recipient of the payment shall
35-18 repay to the insurer an amount equal to the payment received, not
35-19 to exceed the amount of the net recovery. The insurer has a lien
35-20 on the recovery to the extent of the amount owed to the insurer
35-21 under this subsection.
35-22 (d) If the amount of the recovery exceeds the amount of
35-23 personal compensation benefits paid or owed by the insurer at the
35-24 time of the recovery, but the insurer is obligated to pay personal
35-25 compensation benefits in the future, the remaining amount of the
36-1 net recovery shall be subtracted from the benefits to be paid as
36-2 they become due until the amount of the recovery is exhausted. The
36-3 insurer shall reinstate payment of benefits at the time the amount
36-4 of the recovery is exhausted.
36-5 (e) In this article, "net recovery" means the amount
36-6 recovered under the claim for damages, less reasonable attorney's
36-7 fees and other reasonable expenses incurred in obtaining the
36-8 recovery.
36-9 SUBCHAPTER J. MOTORCYCLES
36-10 Art. 27.131. COVERAGE FOR MOTORCYCLES. (a) Notwithstanding
36-11 any other provision of this chapter, and except as specifically
36-12 provided by this article, a motor vehicle insurer may not issue
36-13 insurance under this chapter that provides benefits for the owner
36-14 or operator of a motorcycle for accidental injury arising out of
36-15 the use of a motorcycle.
36-16 (b) A motor vehicle insurance policy must provide personal
36-17 compensation and death benefits under this chapter to an operator
36-18 or passenger of a motorcycle who suffered an accidental injury
36-19 arising out of an accident involving the motorcycle and another
36-20 motor vehicle other than a motorcycle. Benefits under this
36-21 subsection may be provided only to the extent the owner or operator
36-22 of the other motor vehicle would be liable for damages arising out
36-23 of the accidental injury in the absence of Subchapter I of this
36-24 chapter.
36-25 Art. 27.132. LIABILITY OF OWNER OR OPERATOR. (a) Except as
37-1 provided by this article, Subchapter I of this chapter does not
37-2 apply to damages for accidental injury arising, in whole or in
37-3 part, out of the use of a motorcycle in this state.
37-4 (b) Subchapter I applies to accidental injury arising out of
37-5 the use of a motorcycle in this state if the injured person is
37-6 entitled to personal compensation benefits under this chapter.
37-7 SECTION 2. Articles 5.01(b) and (e), Insurance Code, are
37-8 amended to read as follows:
37-9 (b) The Board shall have the sole and exclusive power and
37-10 authority, and it shall be its duty, to determine, fix, prescribe,
37-11 and promulgate just, reasonable, and adequate rates of premiums to
37-12 be charged and collected by all insurers writing any form of
37-13 insurance on motor vehicles in this State, including insurance
37-14 written under Chapter 27 of this code, fleet or other rating plans
37-15 designed to discourage losses from fire and theft and similar
37-16 hazards, and any rating plans designed to encourage the prevention
37-17 of accidents. In promulgating any such rating plans the Board
37-18 shall give due consideration to the peculiar hazards and experience
37-19 of individual risks, past and prospective, within and outside the
37-20 State and to all other relevant factors, within and outside the
37-21 State. The Board shall have the authority also to alter or amend
37-22 any and all of such rates of premiums so fixed and determined and
37-23 adopted by it, and to raise or lower the same or any part thereof.
37-24 (e) Motor vehicle or automobile insurance as referred to in
37-25 this subchapter shall be taken and construed to mean insurance
38-1 providing coverage for motor vehicles under Chapter 27 of this code
38-2 and every form of insurance on any <automobile or> other vehicle
38-3 hereinafter enumerated and its operating equipment or necessitated
38-4 by reason of the liability imposed by law for damages arising out
38-5 of the ownership, operation, maintenance, or use in this State of
38-6 any <automobile, motorcycle, motorbicycle, truck, truck-tractor,
38-7 tractor, traction engine, or any other> self-propelled vehicle, and
38-8 including also every vehicle, trailer or semi-trailer pulled or
38-9 towed by a motor vehicle, but excluding every motor vehicle running
38-10 only upon fixed rails or tracks. Workers' Compensation Insurance
38-11 is excluded from the foregoing definition.
38-12 SECTION 3. Article 5.01B(a), Insurance Code, is amended to
38-13 read as follows:
38-14 (a) Information filed or otherwise provided by an insurer to
38-15 the State Board of Insurance for the purpose of determining,
38-16 fixing, prescribing, promulgating, altering, or amending commercial
38-17 automobile <liability> insurance rates under Article 5.01 of this
38-18 code, obtaining a rate deviation under Article 5.03 of this code,
38-19 or reporting losses under Article 5.04-1 of this code is public
38-20 information unless it is exempt under Subchapter C, Chapter 552,
38-21 Government Code <Section 3(a), Chapter 424, Acts of the 63rd
38-22 Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
38-23 Texas Civil Statutes)>, or Section (b) of this article.
38-24 SECTION 4. Article 5.04-1(a), Insurance Code, is amended to
38-25 read as follows:
39-1 (a) A report filed under Article 5.01(a) of this code must
39-2 include the information necessary to compute a Texas automobile
39-3 experience modifier as provided by this code or a rule adopted by
39-4 the State Board of Insurance. In reporting losses under Article
39-5 5.01(a) of this code, an insurer may include only the following as
39-6 basic limits losses:
39-7 (1) indemnity losses, up to the basic limits for the
39-8 losses;
39-9 (2) losses based on payments for immediate medical or
39-10 surgical treatment;
39-11 (3) fees paid to an attorney who is not an employee of
39-12 the insurer, if the fees were for services rendered in the trial of
39-13 an action arising under a covered claim;
39-14 (4) specific expenses incurred as a direct result of
39-15 defending an action in connection with which the expense is
39-16 claimed;
39-17 (5) specific expenses, other than claims adjustment
39-18 expenses, incurred in connection with the settlement of a claim
39-19 with respect to which the expense is claimed; and
39-20 (6) <all medical payments coverage; and>
39-21 <(7)> personal compensation <injury protection>
39-22 coverage losses.
39-23 SECTION 5. Article 5.06(1), Insurance Code, is amended to
39-24 read as follows:
39-25 (1) The Board shall adopt a policy form and endorsements for
40-1 each type of motor vehicle insurance subject to this subchapter.
40-2 The coverage provided by a policy form adopted under this
40-3 subsection is the minimum coverage that may be provided under an
40-4 insurance policy for that type of insurance in this State. <Each
40-5 policy form must provide the coverages mandated under Articles
40-6 5.06-1 and 5.06-3 of this code, except that the coverages may be
40-7 rejected by the named insured as provided by those articles.>
40-8 SECTION 6. Article 5.06-6, Insurance Code, is amended to
40-9 read as follows:
40-10 Art. 5.06-6. COVERAGES FOR SPOUSES AND FORMER SPOUSES. A
40-11 personal automobile policy or any similar policy form adopted or
40-12 approved by the State Board of Insurance under Article 5.06 of this
40-13 code that provides coverage for an injury <covers liability>
40-14 arising out of ownership, maintenance, or use of a motor vehicle of
40-15 a spouse, who is otherwise insured by the policy, shall contain a
40-16 provision to continue coverage for the spouse during a period of
40-17 separation in contemplation of divorce.
40-18 SECTION 7. Section 1(a), Article 5.101, Insurance Code, is
40-19 amended to read as follows:
40-20 (a) The pilot program on flexible rating is created to help
40-21 stabilize the rates charged for insurance in all lines of <property
40-22 and casualty> insurance covered by Subchapters A through L of this
40-23 chapter, except ocean marine insurance, inland marine insurance,
40-24 fidelity, surety and guaranty bond insurance, errors and omissions
40-25 insurance, directors' and officers' liability insurance, general
41-1 liability insurance, commercial property insurance, workers'
41-2 compensation insurance, professional liability insurance for
41-3 physicians and health care providers as defined in Article 5.15-1
41-4 of this code, and attorney's professional liability insurance.
41-5 SECTION 8. Section 1, Texas Motor Vehicle
41-6 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
41-7 Statutes), is amended to read as follows:
41-8 Sec. 1. The following words and phrases, when used in this
41-9 Act, shall, for the purposes of this Act, have the meanings
41-10 respectively ascribed to them in this section, except in those
41-11 instances where the context clearly indicates a different meaning:
41-12 1. "Highway" means the entire width between property
41-13 lines of any road, street, way, thoroughfare, or bridge in the
41-14 State of Texas not privately owned or controlled, when any part
41-15 thereof is open to the public for vehicular traffic and over which
41-16 the State has legislative jurisdiction under its police power.
41-17 2. "Judgment"--Any judgment which shall have become
41-18 final by expiration without appeal of the time within which an
41-19 appeal might have been perfected, or by final affirmation on
41-20 appeal, rendered by a court of competent jurisdiction of any state
41-21 or of the United States, upon a cause of action arising out of the
41-22 ownership, maintenance or use of any motor vehicle, for damages,
41-23 including damages for care and loss of services, because of bodily
41-24 injury to or death of any person, or for damages because of injury
41-25 to or destruction of property, including the loss of use thereof,
42-1 or upon a cause of action on an agreement of settlement for such
42-2 damages.
42-3 3. "Motor Vehicle"--Every self-propelled vehicle which
42-4 is designed for use upon a highway, including trailers and
42-5 semitrailers designed for use with such vehicles (except traction
42-6 engines, road rollers and graders, tractor cranes, power shovels,
42-7 well drillers and implements of husbandry) and every vehicle which
42-8 is propelled by electric power obtained from overhead wires but not
42-9 operated upon rails.
42-10 4. "License"--Any driver's, operator's, commercial
42-11 operator's, or chauffeur's license, temporary instruction permit or
42-12 temporary license, or restricted license, issued under Article
42-13 6687b, Texas Revised Civil Statutes, pertaining to the licensing of
42-14 persons to operate motor vehicles.
42-15 5. "Nonresident"--Every person who is not a resident
42-16 of the State of Texas.
42-17 6. "Nonresident's Operating Privilege"--The privilege
42-18 conferred upon a nonresident by the laws of Texas pertaining to the
42-19 operation by him of a motor vehicle, or the use of a motor vehicle
42-20 owned by him, in the State of Texas.
42-21 7. "Operator"--Every person who is in actual physical
42-22 control of a motor vehicle.
42-23 8. "Owner"--A person who holds the legal title of a
42-24 motor vehicle, or in the event a motor vehicle is the subject of an
42-25 agreement for the conditional sale or lease thereof with the right
43-1 of purchase upon performance of the conditions stated in the
43-2 agreement and with an immediate right of possession vested in the
43-3 conditional vendee or lessee or in the event a mortgagor of a
43-4 vehicle is entitled to possession, then such conditional vendee or
43-5 lessee or mortgagor shall be deemed the owner for the purposes of
43-6 this Act.
43-7 9. "Person"--Every natural person, firm,
43-8 copartnership, association or corporation.
43-9 10. "Proof of Financial Responsibility" means evidence
43-10 of compliance with or exemption from Section 1A of this Act and
43-11 includes any document that may be furnished to a peace officer or
43-12 person involved in an accident in compliance with Section 1B of
43-13 this Act. <--Proof of ability to respond in damages for liability,
43-14 on account of accidents occurring subsequent to the effective date
43-15 of said proof, arising out of the ownership, maintenance or use of
43-16 a motor vehicle, in the following amounts: effective January 1,
43-17 1984, Fifteen Thousand Dollars ($15,000) because of bodily injury
43-18 to or death of one person in any one accident, and, subject to said
43-19 limit for one person, Thirty Thousand Dollars ($30,000) because of
43-20 bodily injury to or death of two (2) or more persons in any one
43-21 accident, and Fifteen Thousand Dollars ($15,000) because of injury
43-22 to or destruction of property of others in any one accident and
43-23 effective January 1, 1986, Twenty Thousand Dollars ($20,000)
43-24 because of bodily injury to or death of one person in any one
43-25 accident, and, subject to said limit for one person, Forty Thousand
44-1 Dollars ($40,000) because of bodily injury to or death of two (2)
44-2 or more persons in any one accident, and Fifteen Thousand Dollars
44-3 ($15,000) because of injury to or destruction of property of others
44-4 in any one accident. The proof of ability to respond in damages
44-5 may exclude the first Two Hundred Fifty Dollars ($250) of liability
44-6 for bodily injury to or death of any one person in any one
44-7 accident, and, subject to that exclusion for one person, may
44-8 exclude the first Five Hundred Dollars ($500) of liability for the
44-9 bodily injury to or death of two (2) or more persons in any one
44-10 accident and may exclude the first Two Hundred Fifty Dollars ($250)
44-11 of liability for the injury to or destruction of property of others
44-12 in any one accident.>
44-13 11. "Registration"--Registration or license
44-14 certificate or license receipt or dealer's license and registration
44-15 or number plates issued under Article 6675a or Article 6686, Texas
44-16 Revised Civil Statutes, pertaining to the registration of motor
44-17 vehicles.
44-18 12. "Department" means the Department of Public Safety
44-19 of the State of Texas, acting directly or through its authorized
44-20 officers and agents, except in such sections of this Act in which
44-21 some other State Department is specifically named.
44-22 13. "State"--Any state, territory or possession of the
44-23 United States, the District of Columbia, or any province of the
44-24 Dominion of Canada.
44-25 14. "Volunteer Fire Department" means a company,
45-1 department, or association whose members receive no or nominal
45-2 compensation and that is organized in an unincorporated area for
45-3 the purpose of answering fire alarms and extinguishing fires or
45-4 answering fire alarms, extinguishing fires, and providing emergency
45-5 medical services.
45-6 15. "Motorcycle" has the meaning assigned by Section
45-7 1, Chapter 329, Acts of the 60th Legislature, Regular Session, 1967
45-8 (Article 6701c-3, Vernon's Texas Civil Statutes), except that the
45-9 term does not include a moped, as defined by Section 2, Uniform Act
45-10 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
45-11 Statutes), or an all-terrain vehicle as defined by Section 1,
45-12 Article 6701c-5, Revised Statutes.
45-13 SECTION 9. Sections 1A(a), (b), and (d), Texas Motor Vehicle
45-14 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
45-15 Statutes), are amended to read as follows:
45-16 (a) On and after January 1, 1982, no motor vehicle may be
45-17 operated in this State unless a policy of motor vehicle <automobile
45-18 liability> insurance that complies with Section 1A-1 of <in at
45-19 least the minimum amounts to provide evidence of financial
45-20 responsibility under> this Act is in effect to insure against
45-21 potential losses which may arise out of the operation of that
45-22 vehicle.
45-23 (b) The following vehicles are exempt from the requirement
45-24 of Subsection (a) of this section:
45-25 (1) vehicles exempt by Section 33 of this Act;
46-1 (2) any vehicles for which the title is held in the
46-2 name of a volunteer fire department;
46-3 (3) <vehicles for which a bond is on file with the
46-4 Department as provided by Section 24 of this Act, or for which a
46-5 certificate has been obtained from the State Treasurer stating that
46-6 the owner and/or operator has deposited with the State Treasurer
46-7 Fifty-Five Thousand Dollars ($55,000) in cash or securities as
46-8 provided by Section 25 of this Act. Such bond or deposit may be
46-9 filed in lieu of carrying automobile liability insurance where
46-10 proof is required;>
46-11 <(4)> vehicles that are self-insured under Section 34
46-12 of this Act; and
46-13 (4) <(5)> implements of husbandry<; and>
46-14 <(6) vehicles for which a valid certificate certifying
46-15 that cash or a cashier's check in the amount of at least Fifty-Five
46-16 Thousand Dollars ($55,000) is deposited with the county judge of
46-17 the county in which the vehicle is registered has been:>
46-18 <(A) issued by the county judge and acknowledged
46-19 by the sheriff of that county; and>
46-20 <(B) filed with the Department>.
46-21 (d) Subsection (b) of this section may not be construed to
46-22 exempt a person who is operating a vehicle for which title is held
46-23 in the name of a volunteer fire department from the <liability>
46-24 insurance requirements of this Act.
46-25 SECTION 10. Article I, Texas Motor Vehicle
47-1 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
47-2 Statutes), is amended by adding Section 1A-1 to read as follows:
47-3 Sec. 1A-1. (a) The owner or operator of a motor vehicle,
47-4 other than a motorcycle, may satisfy the requirement of this Act
47-5 with a motor vehicle insurance policy providing at least:
47-6 (1) personal compensation coverage under Chapter 27,
47-7 Insurance Code; and
47-8 (2) $15,000 coverage for the liability of the owner or
47-9 operator for liability for damage to or destruction of property in
47-10 one accident.
47-11 (b) The owner or operator of a motorcycle may satisfy the
47-12 requirement of this Act with a motor vehicle insurance policy
47-13 providing at least:
47-14 (1) $20,000 coverage for the liability of the owner or
47-15 operator for liability for bodily injury to or death of one person
47-16 in one accident;
47-17 (2) $40,000 coverage for the liability of the owner or
47-18 operator for liability for bodily injury to or death of two or more
47-19 persons in one accident, subject to the per-person limit
47-20 established by Subdivision (1) of this subsection; and
47-21 (3) $15,000 coverage for the liability of the owner or
47-22 operator for liability for damage to or destruction of property in
47-23 one accident.
47-24 (c) Coverage required under Subsections (a)(2) and (b)(3) of
47-25 this section may exclude, with respect to one accident, the first
48-1 $250 of liability for damage to or destruction of property of
48-2 others.
48-3 (d) Coverage required under Subsections (b)(1) and (2) of
48-4 this section may exclude, with respect to one accident:
48-5 (1) the first $250 of liability for bodily injury or
48-6 death of one person; and
48-7 (2) the first $500 of liability for bodily injury to
48-8 or death of two or more persons, subject to the amount provided by
48-9 Subdivision (1) of this subsection for bodily injury to or death of
48-10 one of the persons.
48-11 SECTION 11. Sections 1B(a) and (d), Texas Motor Vehicle
48-12 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
48-13 Statutes), are amended to read as follows:
48-14 (a) As a condition of operating a motor vehicle in this
48-15 state, the operator of the motor vehicle shall furnish, on request
48-16 of a peace officer or a person involved in an accident with the
48-17 operator:
48-18 (1) an <a liability> insurance policy that complies
48-19 with Section 1A-1 of <in at least the minimum amounts required by>
48-20 this Act, or a photocopy of that policy, that covers the vehicle;
48-21 (2) a standard proof of <liability> insurance form
48-22 promulgated by the Texas Department of Insurance and issued by an
48-23 <a liability> insurer that:
48-24 (A) includes the name of the insurer;
48-25 (B) includes the insurance policy number;
49-1 (C) includes the policy period;
49-2 (D) includes the name and address of each
49-3 insured;
49-4 (E) includes the policy limits or a statement
49-5 that the coverage of the policy complies with Section 1A-1 of <at
49-6 least the minimum amounts of liability insurance required by> this
49-7 Act; and
49-8 (F) includes the make and model of each covered
49-9 vehicle;
49-10 (3) an insurance binder that confirms that the
49-11 operator is in compliance with this Act; or
49-12 (4) a certificate or copy of a certificate issued by
49-13 the department that shows the vehicle is covered by
49-14 self-insurance<;>
49-15 <(5) a certificate issued by the state treasurer that
49-16 shows that the owner of the vehicle has on deposit with the
49-17 treasurer money or securities in at least the amount required by
49-18 Section 25 of this Act;>
49-19 <(6) a certificate issued by the department that shows
49-20 that the vehicle is a vehicle for which a bond is on file with the
49-21 department as provided by Section 24 of this Act; or>
49-22 <(7) a copy of a certificate issued by the county
49-23 judge of a county in which the vehicle is registered that shows
49-24 that the owner of the vehicle has on deposit with the county judge
49-25 cash or a cashier's check in at least the amount required by
50-1 Section 1A(b)(6) of this Act>.
50-2 (d) A standard proof of <liability> insurance form described
50-3 in Subsection (a)(2) <(A)(2)> of this section, or a document that
50-4 is an unauthorized version of the form, is a governmental record
50-5 for purposes of Chapter 37, Penal Code. A standard proof of
50-6 <liability> insurance form is unauthorized for purposes of this
50-7 subsection if it is not issued by an insurer authorized to transact
50-8 motor vehicle <liability> insurance in this state.
50-9 SECTION 12. Sections 1D and 1E, Texas Motor Vehicle
50-10 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
50-11 Statutes), are amended to read as follows:
50-12 Sec. 1D. It is a defense to prosecution under Section 1C of
50-13 this Act if the person charged produces in court an <automobile
50-14 liability> insurance policy that complies with Section 1A-1 of this
50-15 Act or a certificate of self-insurance previously issued to that
50-16 person that was valid at the time that the offense is alleged to
50-17 have occurred and the charge shall be dismissed.
50-18 Sec. 1E. When notified of an accident by the Department in
50-19 which an owner or operator has reported evidence of financial
50-20 responsibility with an insurance company, the insurance company so
50-21 notified shall be required to respond to the Department only if
50-22 there is not a policy of <liability> insurance that complies with
50-23 Section 1A-1 of this Act in effect, as reported.
50-24 SECTION 13. Sections 1F(a) and (f), Texas Motor Vehicle
50-25 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
51-1 Statutes), are amended to read as follows:
51-2 (a) The department shall suspend the driver's license and
51-3 motor vehicle registration of a person convicted of an offense
51-4 under Section 1C(a) of this Act, if a prior conviction of the
51-5 person under Section 1C(a) of this Act has been previously reported
51-6 to the department by a magistrate or the judge or clerk of a court,
51-7 unless the person establishes and maintains proof of financial
51-8 responsibility for two years from the date of the second or
51-9 subsequent conviction. The requirement for filing proof of
51-10 financial responsibility may be waived if satisfactory evidence is
51-11 filed with the Department that the party convicted was at the time
51-12 of arrest covered by a policy of <liability> insurance that
51-13 complies with Section 1A-1 of this Act or was otherwise exempt as
51-14 provided in Section 1A(b) of this Act.
51-15 (f) The following evidence of financial responsibility or a
51-16 photocopy of the evidence satisfies the requirement of Subsection
51-17 (e) of this section:
51-18 (1) an <a liability> insurance policy that complies
51-19 with Section 1A-1 of <in at least the minimum amounts required by>
51-20 this Act to provide proof of financial responsibility covering at
51-21 least the period required by Subsection (e) of this section;
51-22 (2) a standard proof of <liability> insurance form
51-23 promulgated by the Texas Department of Insurance and issued by an
51-24 <a liability> insurer that includes:
51-25 (A) the name of the insurer;
52-1 (B) the insurance policy number;
52-2 (C) the policy period, which must equal or
52-3 exceed the period required by Subsection (e) of this section;
52-4 (D) the name and address of each insured; and
52-5 (E) the policy limits or a statement that the
52-6 coverage of the policy complies with Section 1A-1 of <at least the
52-7 minimum amounts of liability insurance required by> this Act;
52-8 (3) an insurance binder that confirms to the
52-9 satisfaction of the court that the defendant is in compliance with
52-10 this Act for at least the period required by Subsection (e) of this
52-11 section; or
52-12 (4) a copy of a certificate issued by the Department
52-13 of Public Safety that shows that the vehicle to be registered is
52-14 covered by self-insurance<;>
52-15 <(5) a certificate issued by the state treasurer that
52-16 shows that the owner of the vehicle has on deposit with the
52-17 treasurer money or securities in at least the amount required by
52-18 Section 25 of this Act;>
52-19 <(6) a certificate issued by the Department that shows
52-20 that the vehicle is a vehicle for which a bond is on file with the
52-21 Department as provided by Section 24 of this Act; or>
52-22 <(7) a copy of a certificate issued by the county
52-23 judge of a county in which the vehicle is registered that shows
52-24 that the owner of the vehicle has on deposit with the county judge
52-25 cash or a cashier's check in at least the amount required by
53-1 Section 1A(b)(6) of this Act>.
53-2 SECTION 14. Section 1H(a), Texas Motor Vehicle
53-3 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
53-4 Statutes), is amended to read as follows:
53-5 (a) If a person is unable to furnish evidence of financial
53-6 responsibility to a law enforcement officer under Section 1B of
53-7 this Act and the officer issues the person a citation for an
53-8 offense under Section 1C(a)(1) of this Act, the citation must
53-9 include in type larger than other type appearing on the citation
53-10 the following: "A second or subsequent conviction of an offense
53-11 under the Texas Motor Vehicle Safety-Responsibility Act will result
53-12 in the suspension of your driver's license and motor vehicle
53-13 registration unless you file and maintain proof of financial
53-14 responsibility with the Department of Public Safety for two years
53-15 from the date of conviction. The Department may waive the
53-16 requirement to file proof of financial responsibility if you file
53-17 satisfactory evidence with the Department showing that at the time
53-18 this citation was issued, the vehicle was covered by a motor
53-19 vehicle <liability> insurance policy or that you were otherwise
53-20 exempt from the requirements to provide evidence of financial
53-21 responsibility."
53-22 SECTION 15. Section 4A(g), Texas Motor Vehicle
53-23 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
53-24 Statutes), is amended to read as follows:
53-25 (g) The Department shall issue a certificate of release to
54-1 the owner or operator of an impounded motor vehicle or a person
54-2 authorized by the owner on submission to the Department of:
54-3 (1) evidence of financial responsibility <as defined
54-4 by Section 1B(b) of this Act> that reflects that at the time of the
54-5 accident the motor vehicle was covered by a policy of motor vehicle
54-6 <liability> insurance that complies with Section 1A-1 of this Act
54-7 or was otherwise exempt as provided by Section 1A of this Act;
54-8 (2) a release executed by each person damaged in the
54-9 accident other than the operator of the motor vehicle for which the
54-10 certificate of release is requested; or
54-11 (3) security in a form and amount determined by the
54-12 Department to secure the payment of any damages for which the
54-13 operator may be liable.
54-14 SECTION 16. Section 5(c), Texas Motor Vehicle
54-15 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
54-16 Statutes), is amended to read as follows:
54-17 (c) This section shall not apply under the conditions stated
54-18 in Section 6 nor:
54-19 1. To a motor vehicle operator or owner against whom
54-20 the Department or a person presiding at a hearing finds there is
54-21 not a reasonable probability of a judgment being rendered as a
54-22 result of the accident;
54-23 2. To such operator or owner if such owner had in
54-24 effect at the time of such accident a motor vehicle insurance
54-25 <liability> policy with respect to the motor vehicle involved in
55-1 such accident;
55-2 3. To such operator, if not the owner of such motor
55-3 vehicle, if there was in effect at the time of such accident a
55-4 motor vehicle insurance <liability> policy <or bond> with respect
55-5 to his operation of motor vehicles not owned by him;
55-6 4. To any person employed by the government of the
55-7 United States, when such person is acting within the scope or
55-8 office of his employment;
55-9 5. To such operator or owner if the liability of such
55-10 operator or owner for damages resulting from such accident is, in
55-11 the judgment of the Department, covered by any other form of motor
55-12 vehicle <liability> insurance policy <or bond>; nor
55-13 6. To any person qualifying as a self-insurer under
55-14 Section 34 of this Act, or to any person operating a motor vehicle
55-15 for such self-insurer.
55-16 No such policy <or bond> shall be effective under this
55-17 section or under Section 7 unless issued by an insurance company
55-18 <or surety company> authorized to write motor vehicle <liability>
55-19 insurance in this State, except that if such motor vehicle was not
55-20 registered in this State, or was a motor vehicle which was
55-21 registered elsewhere than in this State at the effective date of
55-22 the policy, or the most recent renewal thereof, such policy <or
55-23 bond> shall not be effective under this section unless the
55-24 insurance company <or surety company> if not authorized to do
55-25 business in this State shall execute a power of attorney
56-1 authorizing the Department to accept service on its behalf of
56-2 notice or process in any action upon such policy <or bond> arising
56-3 out of such accident; providing, however, every such policy must
56-4 satisfy the requirements of Section 1A-1 of this Act <or bond is
56-5 subject, if the accident has resulted in bodily injury or death, to
56-6 a limit, exclusive of interest and costs, as follows: effective
56-7 January 1, 1984, not less than Fifteen Thousand Dollars ($15,000)
56-8 because of bodily injury to or death of one person in any one
56-9 accident and, subject to said limit for one person, to a limit of
56-10 not less than Thirty Thousand Dollars ($30,000) because of bodily
56-11 injury to or death of two (2) or more persons in any one accident,
56-12 and, if the accident has resulted in injury to or destruction of
56-13 property, to a limit of not less than Fifteen Thousand Dollars
56-14 ($15,000) because of injury to or destruction of property of others
56-15 in any one accident and effective January 1, 1986, not less than
56-16 Twenty Thousand Dollars ($20,000) because of bodily injury to or
56-17 death of one person in any one accident, and, subject to said limit
56-18 for one person, to a limit of not less than Forty Thousand Dollars
56-19 ($40,000) because of bodily injury to or death of two (2) or more
56-20 persons in any one accident, and, if the accident has resulted in
56-21 injury to or destruction of property, to a limit of not less than
56-22 Fifteen Thousand Dollars ($15,000) because of injury to or
56-23 destruction of property of others in any one accident. The policy
56-24 or bond may exclude coverage of the first Two Hundred Fifty Dollars
56-25 ($250) of liability for bodily injury to or death of any one person
57-1 in any one accident, and, subject to that exclusion for one person,
57-2 may exclude coverage for the first Five Hundred Dollars ($500) of
57-3 liability for the bodily injury to or death of two (2) or more
57-4 persons in any one accident and may exclude coverage for the first
57-5 Two Hundred Fifty Dollars ($250) of liability for the injury to or
57-6 destruction of property of others in any one accident>.
57-7 7. Wherever the word "bond" appears in <this section
57-8 or> this Act, it shall mean a bond filed with and approved by the
57-9 Department of Public Safety.
57-10 SECTION 17. Section 13(c), Texas Motor Vehicle
57-11 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
57-12 Statutes), is amended to read as follows:
57-13 (c) Notwithstanding any other provision of this Act any
57-14 person whose license, registration or nonresident's operating
57-15 privilege has been suspended, or is about to be suspended or shall
57-16 become subject to suspension under this Article, may relieve
57-17 himself from the effect of the judgment by filing with the
57-18 Department satisfactory evidence that there was in effect at the
57-19 time of the accident out of which the judgment arose a policy of
57-20 motor vehicle <liability> insurance covering the operation of the
57-21 motor vehicle involved and filing with the Department an affidavit
57-22 stating that at the time of the accident upon which the judgment
57-23 has been rendered he was insured, that the insurer is liable to pay
57-24 such judgment, and the reason, if known, why the insurance company
57-25 has not paid the judgment. He shall also file the original policy
58-1 of insurance or a certified copy thereof, if available, and such
58-2 other documents as the Department may require to show that the
58-3 loss, injury, or damage for which the judgment was rendered, was
58-4 covered by the policy of insurance.
58-5 If the Department is satisfied from such papers that the
58-6 insurer was authorized to issue the policy of insurance in this
58-7 State at the time of issuing the policy and that such insurer is
58-8 liable to pay such judgment, at least to the extent and for the
58-9 amounts provided in Section 1A-1 of this Article, the Department
58-10 shall not suspend the license, registration or nonresident's
58-11 operating privilege, or if already suspended, shall reinstate them.
58-12 Any person whose license, registration or nonresident's
58-13 operating privilege has heretofore been suspended under the
58-14 provisions of this Article may take advantage of this Section.
58-15 SECTION 18. Section 15, Texas Motor Vehicle
58-16 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
58-17 Statutes), is amended to read as follows:
58-18 Sec. 15. PAYMENTS SUFFICIENT TO SATISFY REQUIREMENTS. (a)
58-19 Except as provided by Subsection (b) of this section, a judgment is
58-20 satisfied <Judgments herein referred to shall,> for the purpose of
58-21 this Act if the amount established under Section 1A-1(a)(2) <only,
58-22 be deemed satisfied:>
58-23 <1. When the amount set out in Subdivision (6) of
58-24 Subsection (c) of Section 5 of this Act for bodily injury to or
58-25 death of one person in any one accident has been credited upon any
59-1 judgment or judgments rendered in excess of that amount because of
59-2 bodily injury to or death of one person as the result of any one
59-3 accident;>
59-4 <2. When, subject to the limit set out in Subdivision
59-5 (6) of Subsection (c) of Section 5 of this Act because of bodily
59-6 injury to or death of one person, the sum set out in Subdivision
59-7 (6) of Subsection (c) of Section 5 of this Act for bodily injury to
59-8 or death of two (2) or more persons in any one accident has been
59-9 credited upon any judgment or judgments rendered in excess of that
59-10 amount because of bodily injury to or death of two (2) or more
59-11 persons as the result of any one accident; or>
59-12 <3. When the sum set out in Subdivision (6) of
59-13 Subsection (c) of Section 5> of this Act for injury to or
59-14 destruction of property of others in <any> one accident has been
59-15 credited upon any judgment or judgments rendered in excess of that
59-16 amount because of injury to or destruction of property of others as
59-17 a result of <any> one accident.<;>
59-18 (b) A judgment against the owner or operator of a motorcycle
59-19 for damages arising out of the ownership or use of the motorcycle
59-20 is satisfied for the purpose of this Act if:
59-21 (1) the amount established under Section 1A-1(b)(1)
59-22 of this Act for bodily injury to or death of one person in one
59-23 accident has been credited upon any judgment or judgments rendered
59-24 in excess of that amount because of bodily injury to or death of
59-25 one person as the result of one accident;
60-1 (2) the amount established under Section 1A-1(b)(2) of
60-2 this Act for bodily injury to or death of two or more persons in
60-3 one accident has been credited upon any judgment or judgments
60-4 rendered in excess of that amount because of bodily injury to or
60-5 death of two or more persons as the result of one accident, subject
60-6 to the per-person limit established by Section 1A-1(b)(1) of this
60-7 Act; and
60-8 (3) the amount established under Section 1A-1(b)(3) of
60-9 this Act for injury to or destruction of property of others in one
60-10 accident has been credited upon any judgment or judgments rendered
60-11 in excess of that amount because of injury to or destruction of
60-12 property of others as a result of one accident.
60-13 (c) Payments <Provided, however,> payments made in
60-14 settlement of any claims because of bodily injury, death or
60-15 property damage arising from a motor vehicle accident shall be
60-16 credited in reduction of the amounts provided for in this Section.
60-17 SECTION 19. Sections 19(a) and (c), Texas Motor Vehicle
60-18 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
60-19 Statutes), are amended to read as follows:
60-20 (a) Proof of financial responsibility may be furnished by
60-21 filing with the Department the certificate of any insurance company
60-22 duly authorized to write motor vehicle <liability> insurance in
60-23 this State certifying that there is in effect a motor vehicle
60-24 insurance <liability> policy for the benefit of the person required
60-25 to furnish proof of financial responsibility. Such certificate
61-1 shall give the effective date of such motor vehicle <liability>
61-2 policy, which date shall be the same as the effective date of the
61-3 certificate, and shall cover all motor vehicles owned by the
61-4 individual required to make such filing as covered by the
61-5 <liability> insurance policy, unless the policy is issued to a
61-6 person who is not the owner of a motor vehicle.
61-7 (c) A certificate described in Subsection (a) of this
61-8 section, or a document that is an unauthorized version of the
61-9 certificate, is a governmental record for purposes of Chapter 37,
61-10 Penal Code. A certificate is unauthorized for purposes of this
61-11 subsection if it is not issued by an insurer authorized to transact
61-12 motor vehicle <liability> insurance in this state.
61-13 SECTION 20. Section 20(a), Texas Motor Vehicle
61-14 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
61-15 Statutes), is amended to read as follows:
61-16 (a) The non-resident owner of a motor vehicle not registered
61-17 in this State may give proof of financial responsibility by filing
61-18 with the Department a certificate or certificates of an insurance
61-19 company authorized to transact business in the state in which the
61-20 motor vehicle or motor vehicles covered in such certificate are
61-21 registered, or if such non-resident does not own a motor vehicle,
61-22 then in the state in which the insured resides, provided such
61-23 certificate otherwise conforms to the provisions of this Act, and
61-24 the Department shall accept the same upon condition that said
61-25 insurance company complies with the following provisions with
62-1 respect to the policies so certified:
62-2 1. Said insurance company shall execute a power of
62-3 attorney authorizing the Department to accept service on its behalf
62-4 of notice or process in any action arising out of a motor vehicle
62-5 accident in this State;
62-6 2. Said insurance company shall agree in writing that
62-7 such policies shall be deemed to conform with the laws of this
62-8 State relating to the terms of motor vehicle insurance <liability>
62-9 policies issued herein.
62-10 SECTION 21. Sections 21, 22, 27, and 29, Texas Motor Vehicle
62-11 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
62-12 Statutes), are amended to read as follows:
62-13 Sec. 21. MOTOR VEHICLE <LIABILITY> POLICY DEFINED. (a) A
62-14 "motor vehicle insurance <liability> policy" as said term is used
62-15 in this Act shall mean an owner's or an operator's policy of motor
62-16 vehicle <liability> insurance, certified as provided in Section 19
62-17 or Section 20 as proof of financial responsibility, and issued,
62-18 except as otherwise provided in Section 20, by an insurance company
62-19 duly authorized to write motor vehicle <liability> insurance in
62-20 this State, to or for the benefit of the person named therein as
62-21 insured.
62-22 (b) Such owner's policy of motor vehicle <liability>
62-23 insurance:
62-24 1. Shall cover all motor vehicles with respect to
62-25 which coverage is thereby to be granted; and
63-1 2. Shall provide the coverage required by Section 1A-1
63-2 of this Act <pay on behalf of the insured named therein and any
63-3 other person, as insured, using any such motor vehicle or motor
63-4 vehicles with the express or implied permission of such named
63-5 insured, all sums which the insured shall become legally obligated
63-6 to pay as damages arising out of the ownership, maintenance or use
63-7 of such motor vehicle or motor vehicles within the United States of
63-8 America or the Dominion of Canada, subject to limits exclusive of
63-9 interest and costs, with respect to each such motor vehicle, as set
63-10 out in Subdivision (6) of Subsection (c) of Section 5 of this Act.
63-11 The policy may exclude coverage of the first Two Hundred Fifty
63-12 Dollars ($250) of liability for bodily injury to or death of any
63-13 one person in any one accident, and, subject to that exclusion for
63-14 one person, may exclude coverage for the first Five Hundred Dollars
63-15 ($500) of liability for the bodily injury to or death of two (2) or
63-16 more persons in any one accident and may exclude coverage for the
63-17 first Two Hundred Fifty Dollars ($250) of liability for the injury
63-18 to or destruction of property of others in any one accident>.
63-19 (c) Such operator's policy of motor vehicle <liability>
63-20 insurance shall provide the coverage required by Section 1A-1 of
63-21 this Act <pay on behalf of the insured named therein all sums which
63-22 the insured shall become legally obligated to pay as damages
63-23 arising out of the use by him of any motor vehicle not owned by
63-24 him, within the same territorial limits and subject to the same
63-25 limits of liability as are set forth above with respect to an
64-1 owner's policy of liability insurance>.
64-2 (d) Such motor vehicle <liability> policy shall state the
64-3 name and address of the named insured, the coverage afforded by the
64-4 policy, the premium charged therefor, the policy period and the
64-5 policy limits <of liability>, and shall contain an agreement or be
64-6 endorsed that insurance is provided thereunder in accordance with
64-7 the coverage required by <defined in> this Act <as respects bodily
64-8 injury and death or property damage, or both,> and is subject to
64-9 all the provisions of this Act.
64-10 (e) Such motor vehicle <liability> policy shall not insure
64-11 any<:>
64-12 <1. Any obligation for which the insured or any company as
64-13 his insurer may be held liable under any workmen's compensation
64-14 law;>
64-15 <2. Any liability on account of bodily injury to or death of
64-16 any employee of the insured while engaged in the employment, other
64-17 than domestic, of the insured, or in domestic employment if
64-18 benefits therefor are either payable or required to be provided
64-19 under any workmen's compensation law; nor>
64-20 <3. Any> liability because of injury to or destruction of
64-21 property owned by, rented to, in charge of or transported by the
64-22 insured.
64-23 (f) Every motor vehicle <liability> policy shall be subject
64-24 to the following provisions which need not be contained therein:
64-25 1. The liability of the insurance company with respect
65-1 to the insurance required by this Act shall become absolute
65-2 whenever injury or damage covered by said motor vehicle <liability>
65-3 policy occurs; said policy may not be canceled or annulled as to
65-4 such liability by any agreement between the insurance company and
65-5 the insured after the occurrence of the injury or damage; no
65-6 statement made by the insured or on his behalf and no violation of
65-7 said policy shall defeat or void said policy;
65-8 2. The satisfaction by the insured of a judgment for
65-9 such injury or damage shall not be a condition precedent to the
65-10 right or duty of the insurance company to make payment on account
65-11 of such injury or damage;
65-12 3. The insurance company shall have the right to
65-13 settle any claim covered by the policy, and if such settlement is
65-14 made in good faith, the amount thereof shall be deductible from the
65-15 limits <of liability> specified in Subdivision 2 of Subsection (b)
65-16 of this Section;
65-17 4. The policy, the written application therefor, if
65-18 any, and any rider or endorsement which does not conflict with the
65-19 provisions of the Act shall constitute the entire contract between
65-20 the parties.
65-21 (g) Any policy which grants the coverage required for a
65-22 motor vehicle insurance <liability> policy may also grant any
65-23 lawful coverage in excess of or in addition to the coverage
65-24 specified for a motor vehicle insurance <liability> policy and such
65-25 excess or additional coverage shall not be subject to the
66-1 provisions of this Act. With respect to a policy which grants such
66-2 excess or additional coverage the term "motor vehicle insurance
66-3 <liability> policy" shall apply only to that part of the coverage
66-4 which is required by this Section.
66-5 (h) Any motor vehicle insurance <liability> policy may
66-6 provide that the insured shall reimburse the insurance company for
66-7 any payment the insurance company would not have been obligated to
66-8 make under the terms of the policy except for the provisions of
66-9 this Act.
66-10 (i) <Any motor vehicle liability policy may provide for the
66-11 prorating of the insurance thereunder with other valid and
66-12 collectible insurance.>
66-13 <(j)> The requirements for a motor vehicle insurance
66-14 <liability> policy may be fulfilled by the policies of one (1) or
66-15 more insurance companies which policies together meet such
66-16 requirements.
66-17 (j) <(k)> Any binder issued pending the issuance of a motor
66-18 vehicle insurance <liability> policy shall be deemed to fulfill the
66-19 requirements for such a policy.
66-20 Sec. 22. NOTICE OF CANCELLATION OR TERMINATION OF CERTIFIED
66-21 POLICY. When an insurance company has certified a motor vehicle
66-22 <liability> policy under Section 19 or a policy under Section 20,
66-23 the insurance so certified shall not be canceled or terminated
66-24 until at least five (5) days after a notice of cancellation or
66-25 termination of the insurance so certified shall be received in the
67-1 office of the Department, except that such a policy subsequently
67-2 procured and certified shall, on the effective date of its
67-3 certification, terminate the insurance previously certified.
67-4 Sec. 27. SUBSTITUTION OF PROOF. The Department shall
67-5 consent to the cancellation of any <bond or> certificate of
67-6 insurance or the Department shall direct and the State Treasurer
67-7 shall return any money or securities to the person entitled thereto
67-8 upon the substitution and acceptance of other adequate proof of
67-9 financial responsibility pursuant to this Act.
67-10 Sec. 29. DURATION OF PROOF--WHEN PROOF MAY BE CANCELLED OR
67-11 RETURNED. The Department shall upon request consent to the
67-12 immediate cancellation of any <bond or> certificate of insurance,
67-13 or the Department shall direct and the State Treasurer shall return
67-14 to the person entitled thereto any money or securities deposited
67-15 pursuant to this Act as proof of financial responsibility, or the
67-16 Department shall waive the requirement of filing proof, in any of
67-17 the following events:
67-18 1. At any time after two (2) years from the date such
67-19 proof was required when, during the two-year period preceding the
67-20 request, the Department has not received record of a conviction or
67-21 a forfeiture of bail which would require or permit the suspension
67-22 or revocation of the license, registration or nonresident's
67-23 operating privilege of the person by or for whom such proof was
67-24 furnished; or
67-25 2. In the event of the death of the person on whose
68-1 behalf such proof was filed or the permanent incapacity of such
68-2 person to operate a motor vehicle; or
68-3 3. In the event the person who has given proof
68-4 surrenders his license and registration to the Department;
68-5 Provided, however, that the Department shall not consent to
68-6 the cancellation of any bond or the return of any money or
68-7 securities in the event any action for damages upon a liability
68-8 covered by such proof is then pending or any judgment upon any such
68-9 liability is then unsatisfied, or in the event the person who has
68-10 filed such bond or deposited such money or securities has, within
68-11 two (2) years immediately preceding such request, been involved as
68-12 an operator or owner in any motor vehicle accident resulting in
68-13 injury or damage to the person or property of others. An affidavit
68-14 of the applicant as to the nonexistence of such facts, or that he
68-15 has been released from all of his liability, or has been finally
68-16 adjudicated not to be liable, for such injury or damage, shall be
68-17 sufficient evidence thereof in the absence of evidence to the
68-18 contrary in the records of the Department.
68-19 Whenever any person whose proof has been cancelled or
68-20 returned under Subdivision 3 of this Section applies for a license
68-21 or registration within a period of two (2) years from the date
68-22 proof was originally required, any such application shall be
68-23 refused unless the applicant shall re-establish such proof for the
68-24 remainder of such two-year period.
68-25 SECTION 22. Section 34(b), Texas Motor Vehicle
69-1 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
69-2 Statutes), is amended to read as follows:
69-3 (b) The Department may, in its discretion, upon the
69-4 application of a person, issue a certificate of self-insurance when
69-5 it is satisfied that such person is possessed and will continue to
69-6 be possessed of ability to provide the benefits required by Chapter
69-7 27, Insurance Code, and pay judgments obtained against such person
69-8 to the extent of the limits established by Section 1A-1 of this
69-9 Act.
69-10 SECTION 23. Section 36(a), Texas Motor Vehicle
69-11 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
69-12 Statutes), is amended to read as follows:
69-13 (a) The <Except for fees collected under Section 1C(e) of
69-14 this Act, the> fees and charges required by this Act shall be
69-15 remitted without deduction to the Department at Austin, Texas, and
69-16 all such fees so collected shall be deposited in the Treasury of
69-17 the State of Texas to the credit of an account in the general
69-18 revenue <a> fund to be known as the Operator's and Chauffeur's
69-19 License Account <Fund>. A <In addition to statutory recording fees
69-20 of county clerks required in Section 24, any> request for a
69-21 certified abstract of operating record required in Section 3 shall
69-22 be accompanied by a fee of Twenty Dollars ($20) for each
69-23 transaction. Statutory fees required by the Texas <State>
69-24 Department of <Highways and Public> Transportation in furnishing
69-25 certified abstracts or in connection with suspension of
70-1 registrations<, or such statutory fees which shall become due the
70-2 State Treasurer for issuance of certificates of deposits required
70-3 in Section 25,> shall be remitted from that account <such Fund>.
70-4 SECTION 24. Section 3, Article 21.28-C, Insurance Code, is
70-5 amended to read as follows:
70-6 Sec. 3. Scope. (a) This Act applies to all kinds of direct
70-7 insurance, and except as provided in Section 12 of this Act, is not
70-8 applicable to the following:
70-9 (1) life, annuity, health, or disability insurance;
70-10 (2) mortgage guaranty, financial guaranty, or other
70-11 forms of insurance offering protection against investment risks;
70-12 (3) fidelity or surety bonds, or any other bonding
70-13 obligations;
70-14 (4) credit insurance, vendors' single-interest
70-15 insurance, collateral protection insurance, or any similar
70-16 insurance protecting the interests of a creditor arising out of a
70-17 creditor-debtor transaction;
70-18 (5) insurance of warranties or service contracts;
70-19 (6) title insurance;
70-20 (7) ocean marine insurance;
70-21 (8) any transaction or combination of transactions
70-22 between a person, including an affiliate of such a person, and an
70-23 insurer, including an affiliate of such an insurer, that involves
70-24 the transfer of investment or credit risk unaccompanied by the
70-25 transfer of insurance risk; or
71-1 (9) any insurance provided by or guaranteed by
71-2 government.
71-3 (b) This Act applies to motor vehicle insurance issued under
71-4 Chapter 27 of this code.
71-5 SECTION 25. Article 21.49-2A(a)(1), Insurance Code, is
71-6 amended to read as follows:
71-7 (1) "Liability insurance" means the following types of
71-8 insurance:
71-9 (A) general liability;
71-10 (B) professional liability other than medical
71-11 professional liability;
71-12 (C) commercial automobile coverage, including
71-13 coverage issued under Chapter 27 of this code <liability>;
71-14 (D) commercial multiperil coverage; and
71-15 (E) any other types or lines of liability
71-16 insurance designated by the State Board of Insurance.
71-17 SECTION 26. Section 5(a), Article 21.55, Insurance Code, is
71-18 amended to read as follows:
71-19 (a) This article does not apply to:
71-20 (1) workers' compensation insurance;
71-21 (2) mortgage guaranty insurance;
71-22 (3) title insurance;
71-23 (4) fidelity, surety, or guaranty bonds;
71-24 (5) marine insurance other than inland marine
71-25 insurance governed by Article 5.53 of this code; <or>
72-1 (6) a guaranty association created and operating under
72-2 Article 9.48 of this code; or
72-3 (7) personal compensation coverage and death benefits
72-4 payable under a motor vehicle insurance policy.
72-5 SECTION 27. Sections 3(a) and (f), Article 21.81, Insurance
72-6 Code, are amended to read as follows:
72-7 (a) The governing committee has the responsibility for the
72-8 administration of the association through the plan of operation.
72-9 The association may collect funds from the member companies to
72-10 provide for the operation of the association. Assessments must be
72-11 made upon member companies in proportion to their writings of motor
72-12 vehicle <liability> insurance in this state. If an assessment made
72-13 upon a member insurer is not paid within a reasonable time, the
72-14 association may bring an action to collect the assessment. In
72-15 addition, the association may report the failure to pay to the
72-16 commissioner, who may institute a disciplinary action under Article
72-17 1.10 of this code. The association has the powers granted to
72-18 nonprofit corporations under the Texas Non-Profit Corporation Act
72-19 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).
72-20 (f) The plan of operation must include a voluntary,
72-21 competitive limited assignment distribution plan that allows
72-22 members to contract directly with a servicing carrier to accept
72-23 assignments to that carrier by the association. A servicing
72-24 carrier must be an insurance company licensed to write automobile
72-25 insurance in this state and is qualified if it has written
73-1 automobile <liability> insurance in Texas for at least five years
73-2 or is currently engaged as a servicing carrier for assigned risk
73-3 automobile business in at least one other state. After notice and
73-4 hearing, the commissioner may prohibit an insurer from acting as a
73-5 servicing carrier. The terms of the contract between the servicing
73-6 carrier and the insurer, including the buy-out fee, shall be
73-7 determined by negotiation between the parties. The governing
73-8 committee may adopt reasonable rules for the conduct of business
73-9 under the contract and may establish reasonable standards of
73-10 eligibility for servicing carriers.
73-11 SECTION 28. Section 4(c), Article 21.81, Insurance Code, is
73-12 amended to read as follows:
73-13 (c) A person who obtains, from any source, excess private
73-14 passenger auto <liability> insurance coverage over the minimum auto
73-15 <liability> coverage required by law shall be ineligible for
73-16 insurance through the association. The coverage for the excess and
73-17 basic limits policies is not affected by a violation of this
73-18 section unless the insurer shows that the insured had actual
73-19 knowledge that the insured was <they were> ineligible for coverage
73-20 through the association. An agent may not knowingly write excess
73-21 private passenger auto <liability> insurance coverage if the
73-22 minimum <auto liability> coverage required by law is provided
73-23 through the association. If an agent violates this section, the
73-24 agent, after notice and hearing, is subject to the penalties
73-25 provided by Section 7, Article 1.10, of this code.
74-1 SECTION 29. Sections 2a(d) and (e), Chapter 88, General
74-2 Laws, Acts of the 41st Legislature, 2nd Called Session, 1929
74-3 (Article 6675a-2a, Vernon's Texas Civil Statutes), are amended to
74-4 read as follows:
74-5 (d) The following evidence of financial responsibility or a
74-6 photocopy of the evidence satisfies the requirement of this
74-7 section:
74-8 (1) an <a liability> insurance policy or <liability>
74-9 self-insurance or pool coverage document issued by a political
74-10 subdivision or governmental pool pursuant to the authority
74-11 contained in The Interlocal Cooperation Act (Article 4413(32c),
74-12 Vernon's Texas Civil Statutes), Chapter 119, Local Government Code,
74-13 or other applicable law in at least the minimum amounts required by
74-14 the Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
74-15 Vernon's Texas Civil Statutes) to provide proof of financial
74-16 responsibility covering at least the period required by Subsection
74-17 (a) of this section;
74-18 (2) a standard proof of insurance <liability> form
74-19 promulgated by the Texas Department of Insurance and issued by an
74-20 <a liability> insurer that includes:
74-21 (A) the name of the insurer;
74-22 (B) the insurance policy or other coverage
74-23 document number;
74-24 (C) the policy or other coverage document
74-25 coverage period;
75-1 (D) the name and address of each insured or
75-2 covered person;
75-3 (E) the policy or other coverage document limits
75-4 or a statement that the coverage of the policy complies with at
75-5 least the minimum amounts of <liability> insurance required by the
75-6 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
75-7 Vernon's Texas Civil Statutes); and
75-8 (F) the make and model of each covered vehicle;
75-9 (3) an insurance binder that confirms to the
75-10 satisfaction of the county tax collector that the owner of the
75-11 motor vehicle to be registered is in compliance with the Texas
75-12 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
75-13 Texas Civil Statutes) for at least the period required by
75-14 Subsection (a) of this section; or
75-15 (4) a copy of a certificate issued by the Department
75-16 of Public Safety that shows that the vehicle to be registered is
75-17 covered by self-insurance<;>
75-18 <(5) a certificate issued by the state treasurer that
75-19 shows that the owner of the vehicle has on deposit with the
75-20 treasurer money or securities in at least the amount required by
75-21 Section 25 of the Texas Motor Vehicle Safety-Responsibility Act
75-22 (Article 6701h, Vernon's Texas Civil Statutes);>
75-23 <(6) a certificate issued by the Department of Public
75-24 Safety that shows that the vehicle is a vehicle for which a bond is
75-25 on file with the Department as provided by Section 24 of the Texas
76-1 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
76-2 Texas Civil Statutes); or>
76-3 <(7) a copy of a certificate issued by the county
76-4 judge of a county in which the vehicle is registered that shows
76-5 that the owner of the vehicle has on deposit with the county judge
76-6 cash or a cashier's check in at least the amount required by
76-7 Section 1A(b)(6) of the Texas Motor Vehicle Safety-Responsibility
76-8 Act (Article 6701h, Vernon's Texas Civil Statutes)>.
76-9 (e) At the time the county tax collector registers a motor
76-10 vehicle, the tax collector shall provide to the person registering
76-11 the motor vehicle a separate document that contains a statement
76-12 that the motor vehicle being registered may not be operated in this
76-13 state unless <liability> insurance coverage for the vehicle in at
76-14 least the minimum amounts required by law remains in effect <to
76-15 insure against potential losses> or unless the motor vehicle is
76-16 exempt from the insurance requirement by Section 1A(b), Texas Motor
76-17 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
76-18 Civil Statutes).
76-19 SECTION 30. Section 6(c), Chapter 173, Acts of the 47th
76-20 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
76-21 Civil Statutes), is amended to read as follows:
76-22 (c) An application for an original or renewal driver's
76-23 license must be accompanied by evidence of financial responsibility
76-24 or a statement that the applicant does not own a motor vehicle for
76-25 which maintenance of financial responsibility is required under the
77-1 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
77-2 Vernon's Texas Civil Statutes). Evidence of financial
77-3 responsibility presented under this subsection must comply with
77-4 Section 1A-1 <be in at least the minimum amounts required by
77-5 Subdivision 10, Section 1>, Texas Motor Vehicle
77-6 Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
77-7 Statutes), must cover each motor vehicle that the applicant owns
77-8 and for which the applicant is required to maintain financial
77-9 responsibility, and may be shown in the manner specified under
77-10 Section 1B(a) of that Act. A personal automobile insurance policy
77-11 used as evidence of financial responsibility under this subsection
77-12 must be written for a term of 30 days or more as required by
77-13 Article 5.06, Insurance Code. A statement that the applicant does
77-14 not own an applicable motor vehicle must be sworn to and signed by
77-15 the applicant.
77-16 SECTION 31. The following laws are repealed:
77-17 (1) Articles 5.06-1 and 5.06-3, Insurance Code; and
77-18 (2) Sections 18, 24, 25, 37, 39, 40, 41, and 42, Texas
77-19 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
77-20 Texas Civil Statutes).
77-21 SECTION 32. The Department of Insurance shall adjust the
77-22 premium rate applicable to motor vehicle insurance policies under
77-23 Chapter 5, Insurance Code, that is in effect for policies that are
77-24 affected by this Act and that are delivered, issued for delivery,
77-25 or renewed, during 1996 to reflect the loss and expense savings
78-1 that are predicted to result from the implementation of this Act.
78-2 The department shall determine predicted loss and expense savings
78-3 on a prospective and actuarially sound basis.
78-4 SECTION 33. If Subchapter I, Chapter 27, Insurance Code, as
78-5 added by this Act, or Section 27.132, Insurance Code, as added by
78-6 this Act, is finally determined to be invalid by a court of
78-7 competent jurisdiction, motor vehicle insurers may assess a premium
78-8 surcharge, in an amount approved by the Department of Insurance, to
78-9 recover losses resulting from that determination.
78-10 SECTION 34. (a) Except as provided by Subsection (b) of
78-11 this section, this Act takes effect September 1, 1995.
78-12 (b) Sections 8-23 and Sections 29-31 of this Act take effect
78-13 January 1, 1996.
78-14 SECTION 35. This Act applies only to a motor vehicle
78-15 insurance policy that is delivered, issued for delivery, or renewed
78-16 on or after January 1, 1996. A policy that is delivered, issued
78-17 for delivery, or renewed before January 1, 1996, is governed by the
78-18 law as it existed immediately before the effective date of this
78-19 Act, and that law is continued in effect for that purpose.
78-20 SECTION 36. Subchapter I, Chapter 27, Insurance Code, as
78-21 added by this Act, and Section 27.132, Insurance Code, as added by
78-22 this Act, apply only to an action to recover damages for accidental
78-23 injury that accrues on or after January 1, 1996. An action that
78-24 accrues before January 1, 1996, is governed by the law as it
78-25 existed immediately before the effective date of this Act, and that
79-1 law is continued in effect for that purpose.
79-2 SECTION 37. The importance of this legislation and the
79-3 crowded condition of the calendars in both houses create an
79-4 emergency and an imperative public necessity that the
79-5 constitutional rule requiring bills to be read on three several
79-6 days in each house be suspended, and this rule is hereby suspended.