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.