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. 3-21 COMMITTEE AMENDMENT NO. 1 3-22 Amend S.B. No. 553 by amending Article 5.03-3, Insurance 3-23 Code, as added by the bill (Senate engrossment printing page 3, 3-24 between lines 11 and 12), by inserting a new Section 4 of that 3-25 article to read as follows: 3-26 Sec. 4. CONTINUATION OF DISCOUNT. Notwithstanding Section 3-27 2(b)(3) of this article, an insurer may continue to grant a 4-1 discount under this article to a person who has graduated from an 4-2 academic course of study at an institution of higher education if 4-3 the person: 4-4 (1) attended an institution of higher education as a 4-5 full-time student for at least two consecutive years and was an 4-6 honor student for at least the last two years of the person's 4-7 course of study; and 4-8 (2) is under 25 years of age. 4-9 74R12378 PB-F Driver