By Nelson S.B. No. 553 74R4181 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a discount on motor vehicle insurance premiums for 1-3 certain students based on academic achievement. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is 1-6 amended by adding Article 5.03-3 to read as follows: 1-7 Art. 5.03-3. PREMIUM DISCOUNT FOR ACADEMIC ACHIEVEMENT 1-8 Sec. 1. DEFINITIONS. In this article: 1-9 (1) "Honor student" means an individual who, according 1-10 to the official scholastic records for the preceding academic 1-11 semester, quarter, or other grade reporting period: 1-12 (A) ranks scholastically in the upper 20 percent 1-13 of the class; 1-14 (B) has a "B" average or better; 1-15 (C) has a 3.0 average or better on a 4.0 scale; 1-16 or 1-17 (D) is on the "honor roll," the "dean's list," 1-18 or an analogous listing based on academic achievement. 1-19 (2) "Insurer" means an insurance company, 1-20 interinsurance exchange, mutual, capital stock company, fraternal 1-21 benefit society, local mutual aid association, county mutual, 1-22 reciprocal, association, Lloyd's plan, or other entity writing 1-23 motor vehicle insurance in this state. The term includes a company 1-24 affiliated with an insurer. 2-1 (3) "Motor vehicle" means any private passenger 2-2 vehicle, including a motorcycle, that: 2-3 (A) is registered in this state; and 2-4 (B) has a gross weight of 25,000 pounds or less. 2-5 (4) "Traffic safety regulation" means a law or 2-6 ordinance of this state or a political subdivision of this state 2-7 relating to the operation of motor vehicles other than a regulation 2-8 relating to pedestrians or to the parking of motor vehicles. 2-9 Sec. 2. DISCOUNT AUTHORIZED. (a) An insurer who delivers 2-10 or issues for delivery in this state a motor vehicle insurance 2-11 policy, on receipt of written verification from the insured that 2-12 the insured or a family member covered by the policy is eligible 2-13 under Subsection (b) of this section, may grant a discount in the 2-14 amount provided by Subsection (d) of this section in the premiums 2-15 charged for the insurance coverage for the motor vehicle designated 2-16 to be driven by the honor student. 2-17 (b) To be eligible for a discount under this article, an 2-18 applicant for a discount must file information with the insurer 2-19 annually on a form prescribed by the commissioner. The information 2-20 must present evidence satisfactory to establish that the person 2-21 covered by the discount: 2-22 (1) is licensed to drive in this state; 2-23 (2) is unmarried; 2-24 (3) is under 25 years of age; 2-25 (4) is enrolled as a full-time student in: 2-26 (A) the junior or senior year of high school; 2-27 (B) academic courses in an institution of higher 3-1 education; or 3-2 (C) a recognized course of study for 3-3 professional certification in a vocational technical school; and 3-4 (5) is an honor student. 3-5 (c) In addition to the information required under Subsection 3-6 (b) of this section, if the insurance policy covers more than one 3-7 motor vehicle, the applicant for the discount must designate the 3-8 vehicle to be driven by the honor student. A discount under this 3-9 article applies only to the premium attributable to coverage for 3-10 the vehicle designated under this subsection. 3-11 (d) The commissioner shall set the amount of the discounts 3-12 applicable under this article. 3-13 Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) An 3-14 insurer shall revoke a discount made under this article if the 3-15 person covered by the discount, during the three years preceding 3-16 the date of the application: 3-17 (1) has been convicted of a violation of a traffic 3-18 safety regulation that involves a moving vehicle; or 3-19 (2) has been found at fault in more than one motor 3-20 vehicle accident. 3-21 (b) A motor vehicle insurance policy is not eligible for a 3-22 discount under this article if the person to be covered by the 3-23 discount has been convicted of an offense: 3-24 (1) relating to the operation of a motor vehicle under 3-25 Chapter 49, Penal Code; or 3-26 (2) under Article 6701l-1, Revised Statutes, or 3-27 relating to the operation of a motor vehicle under Section 49.04, 4-1 Penal Code, as those statutes existed before repeal by Chapter 900, 4-2 Acts of the 73rd Legislature, Regular Session, 1993. 4-3 (c) For purposes of Subsections (a) and (b) of this section, 4-4 a person is considered to have been convicted in a case if: 4-5 (1) a sentence is imposed; or 4-6 (2) the person receives community supervision. 4-7 (d) The commissioner by rule shall prescribe the manner in 4-8 which the information required under this section may be submitted 4-9 to the department. 4-10 SECTION 2. This Act takes effect September 1, 1995, and 4-11 applies only to a motor vehicle insurance policy that is delivered, 4-12 issued for delivery, or renewed on or after January 1, 1996. A 4-13 policy that is delivered, issued for delivery, or renewed before 4-14 January 1, 1996, is governed by the law as it existed immediately 4-15 before the effective date of this Act, and that law is continued in 4-16 effect for that purpose. 4-17 SECTION 3. The importance of this legislation and the 4-18 crowded condition of the calendars in both houses create an 4-19 emergency and an imperative public necessity that the 4-20 constitutional rule requiring bills to be read on three several 4-21 days in each house be suspended, and this rule is hereby suspended.