By Rosson S.B. No. 66
74R1243 PB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of a program to provide motor vehicle
1-3 insurance coverage at affordable rates for certain individuals with
1-4 good driving records.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is
1-7 amended by adding Article 5.12-2 to read as follows:
1-8 Art. 5.12-2. GOOD DRIVERS PROGRAM
1-9 Sec. 1. DEFINITIONS. In this article:
1-10 (1) "Applicant" means an applicant for participation
1-11 in the program.
1-12 (2) "Driving record" means an individual's history of
1-13 convictions of violations of traffic safety regulations.
1-14 (3) "Insurer" means an insurance company,
1-15 interinsurance exchange, mutual, capital stock company, fraternal
1-16 benefit society, local mutual aid association, county mutual,
1-17 reciprocal, association, Lloyd's plan, or other entity writing
1-18 motor vehicle insurance in this state. The term includes a company
1-19 affiliated with an insurer.
1-20 (4) "Program" means the good drivers program created
1-21 under this article.
1-22 (5) "Traffic safety regulation" means a law or
1-23 ordinance of this state or a political subdivision of this state
1-24 relating to the operation of motor vehicles other than a regulation
2-1 relating to pedestrians or to the parking of motor vehicles.
2-2 Sec. 2. GOOD DRIVERS PROGRAM. The commissioner of insurance
2-3 shall establish a good drivers program to make motor vehicle
2-4 insurance more readily available and affordable to individuals with
2-5 good driving records.
2-6 Sec. 3. ELIGIBILITY CONDITIONS FOR DRIVERS. (a) To be
2-7 eligible to participate in the program, an applicant must file an
2-8 application for participation with the department and present
2-9 evidence satisfactory to the department that the applicant:
2-10 (1) is licensed to drive in this state;
2-11 (2) has held a driver's license for at least three
2-12 years on the date that the application is filed;
2-13 (3) has not, during the three years preceding the date
2-14 of the application, been convicted of a violation of a traffic
2-15 safety regulation that involves a moving vehicle; and
2-16 (4) has not, during the three years preceding the date
2-17 of the application, been found at fault in more than one motor
2-18 vehicle accident.
2-19 (b) An applicant is not eligible to participate in the
2-20 program if the applicant has been convicted of:
2-21 (1) an offense under Article 6701l-1, Revised
2-22 Statutes; or
2-23 (2) an offense relating to the operation of a motor
2-24 vehicle under Section 19.05, Penal Code.
2-25 (c) For purposes of Subsections (a) and (b) of this section,
2-26 an applicant is considered to have been convicted in a case if:
2-27 (1) a sentence is imposed; or
3-1 (2) the applicant receives community supervision.
3-2 (d) The commissioner by rule shall prescribe the manner in
3-3 which the information required under this section may be submitted
3-4 to the department.
3-5 (e) The commissioner by rule may establish additional
3-6 requirements for participation in the program.
3-7 Sec. 4. CERTIFICATE OF ELIGIBILITY. The department shall
3-8 issue a written certificate of eligibility to each applicant who
3-9 meets the requirements of Section 3 of this article.
3-10 Sec. 5. INSURER REQUIREMENTS; PREMIUM RATES. (a) An
3-11 insurer shall offer motor vehicle insurance coverage to each
3-12 individual who holds a certificate of eligibility issued by the
3-13 department under Section 4 of this article and who applies for
3-14 motor vehicle insurance coverage from that insurer.
3-15 (b) The insurer must offer the coverage at the lowest
3-16 applicable premium rate offered by that insurer for motor vehicle
3-17 insurance coverage.
3-18 (c) An insurer may refuse to issue a policy under this
3-19 article that covers a member of an applicant's household if that
3-20 individual is not a holder of a certificate of eligibility issued
3-21 under Section 4 of this article.
3-22 Sec. 6. CANCELLATION AND NONRENEWAL. (a) An insurer may
3-23 cancel an insurance policy issued under this article during the
3-24 term of the policy only as permitted under Section 4, Article
3-25 21.49-2B of this code.
3-26 (b) An insurer may refuse to renew a policy under this
3-27 article only if the insured is no longer eligible for the program.
4-1 (c) If an insurer cancels or refuses to renew a policy under
4-2 this subsection because of the conduct of an individual insured,
4-3 coverage for another individual covered by the policy may not be
4-4 canceled or nonrenewed and the insurer shall determine the
4-5 applicable rate for the remaining insured for premium purposes.
4-6 SECTION 2. (a) This Act takes effect September 1, 1995.
4-7 (b) Section 5, Article 5.12-2, Insurance Code, as added by
4-8 this Act, applies only to a motor vehicle insurance policy that is
4-9 delivered, issued for delivery, or renewed before January 1, 1996.
4-10 A policy that is delivered, issued for delivery, or renewed before
4-11 January 1, 1994, is governed by the law as it existed immediately
4-12 before the effective date of this Act, and that law is continued in
4-13 effect for that purpose.
4-14 SECTION 3. The importance of this legislation and the
4-15 crowded condition of the calendars in both houses create an
4-16 emergency and an imperative public necessity that the
4-17 constitutional rule requiring bills to be read on three several
4-18 days in each house be suspended, and this rule is hereby suspended.