By:  Nelson                                            S.B. No. 553
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to a discount on motor vehicle insurance premiums for
    1-2  certain students based on academic achievement.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter A, Chapter 5, Insurance Code, is
    1-5  amended by adding Article 5.03-3 to read as follows:
    1-6        Art. 5.03-3.  PREMIUM DISCOUNT FOR ACADEMIC ACHIEVEMENT
    1-7        Sec. 1.  DEFINITIONS.  In this article:
    1-8              (1)  "Honor student" means an individual who, according
    1-9  to the official scholastic records for the preceding academic
   1-10  semester, quarter, or other grade reporting period, has a:
   1-11                    (A)  "B" average or better; or
   1-12                    (B)  3.0 average or better on a 4.0 scale.
   1-13              (2)  "Insurer" means an insurance company,
   1-14  interinsurance exchange, mutual, capital stock company, fraternal
   1-15  benefit society, local mutual aid association, county mutual,
   1-16  reciprocal, association, Lloyd's plan, or other entity writing
   1-17  motor vehicle insurance in this state.  The term includes a company
   1-18  affiliated with an insurer.
   1-19              (3)  "Motor vehicle" means any private passenger
   1-20  vehicle that:
   1-21                    (A)  is registered in this state; and
   1-22                    (B)  has a gross weight of 25,000 pounds or less.
   1-23              (4)  "Traffic safety regulation" means a law or
   1-24  ordinance of this state or a political subdivision of this state
    2-1  relating to the operation of motor vehicles other than a regulation
    2-2  relating to pedestrians or to the parking of motor vehicles.
    2-3        Sec. 2.  DISCOUNT AUTHORIZED.  (a)  An insurer who delivers
    2-4  or issues for delivery in this state a motor vehicle insurance
    2-5  policy, on receipt of written verification from the insured that
    2-6  the insured or a family member covered by the policy is eligible
    2-7  under Subsection (b), may grant a discount in the amount provided
    2-8  by Subsection (c) in the premiums charged for the liability,
    2-9  medical payments, personal injury protection, and collision
   2-10  coverage only for the motor vehicle designated to be driven by the
   2-11  honor student.
   2-12        (b)  To be eligible for a discount under this article, an
   2-13  applicant for a discount must file with the insurer annually the
   2-14  grade report issued by the school and other information that
   2-15  presents evidence satisfactory to establish that the person covered
   2-16  by the discount:
   2-17              (1)  is licensed to drive in this state;
   2-18              (2)  is under 25 years of age and qualifies as a
   2-19  youthful driver under the Texas Department of Insurance automobile
   2-20  classification plan; and
   2-21              (3)  is enrolled as a full-time student in:
   2-22                    (A)  the junior or senior year of high school; or
   2-23                    (B)  academic courses in an institution of higher
   2-24  education.
   2-25        (c)  The commissioner by rule shall set the amount of the
   2-26  discounts applicable under this article and may adopt other rules
   2-27  necessary for the implementation of this article.
    3-1        Sec. 3.  INELIGIBILITY; REVOCATION OF DISCOUNT.  (a)  A
    3-2  person may not continue to receive a discount under this article
    3-3  after the first date on which the person fails to satisfy the
    3-4  requirements of Section 2(b) unless the person reestablishes
    3-5  eligibility under this article.
    3-6        (b)  An insurer shall revoke a discount under this article if
    3-7  an applicant for the discount knowingly provides false information
    3-8  in or with the application.
    3-9        SECTION 2.  This Act takes effect September 1, 1995, and
   3-10  applies only to a motor vehicle insurance policy that is delivered,
   3-11  issued for delivery, or renewed on or after January 1, 1996.  A
   3-12  policy that is delivered, issued for delivery, or renewed before
   3-13  January 1, 1996, is governed by the law as it existed immediately
   3-14  before the effective date of this Act, and that law is continued in
   3-15  effect for that purpose.
   3-16        SECTION 3.  The importance of this legislation and the
   3-17  crowded condition of the calendars in both houses create an
   3-18  emergency and an imperative public necessity that the
   3-19  constitutional rule requiring bills to be read on three several
   3-20  days in each house be suspended, and this rule is hereby suspended.