S.B. No. 553
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 Sec. 4. CONTINUATION OF DISCOUNT. Notwithstanding Section
3-10 2(b)(3), an insurer may continue to grant a discount under this
3-11 article to a person who has graduated from an academic course of
3-12 study at an institution of higher education if the person:
3-13 (1) attended an institution of higher education as a
3-14 full-time student for at least two consecutive years and was an
3-15 honor student for at least the last two years of the person's
3-16 course of study; and
3-17 (2) is under 25 years of age.
3-18 SECTION 2. This Act takes effect September 1, 1995, and
3-19 applies only to a motor vehicle insurance policy that is delivered,
3-20 issued for delivery, or renewed on or after January 1, 1996. A
3-21 policy that is delivered, issued for delivery, or renewed before
3-22 January 1, 1996, is governed by the law as it existed immediately
3-23 before the effective date of this Act, and that law is continued in
3-24 effect for that purpose.
3-25 SECTION 3. The importance of this legislation and the
3-26 crowded condition of the calendars in both houses create an
3-27 emergency and an imperative public necessity that the
4-1 constitutional rule requiring bills to be read on three several
4-2 days in each house be suspended, and this rule is hereby suspended.