1-1 By: Nelson S.B. No. 553
1-2 (In the Senate - Filed February 14, 1995; February 15, 1995,
1-3 read first time and referred to Committee on Economic Development;
1-4 April 20, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; April 20, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 553 By: Patterson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to a discount on motor vehicle insurance premiums for
1-11 certain students based on academic achievement.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is
1-14 amended by adding Article 5.03-3 to read as follows:
1-15 Art. 5.03-3. PREMIUM DISCOUNT FOR ACADEMIC ACHIEVEMENT
1-16 Sec. 1. DEFINITIONS. In this article:
1-17 (1) "Honor student" means an individual who, according
1-18 to the official scholastic records for the preceding academic
1-19 semester, quarter, or other grade reporting period, has a:
1-20 (A) "B" average or better; or
1-21 (B) 3.0 average or better on a 4.0 scale.
1-22 (2) "Insurer" means an insurance company,
1-23 interinsurance exchange, mutual, capital stock company, fraternal
1-24 benefit society, local mutual aid association, county mutual,
1-25 reciprocal, association, Lloyd's plan, or other entity writing
1-26 motor vehicle insurance in this state. The term includes a company
1-27 affiliated with an insurer.
1-28 (3) "Motor vehicle" means any private passenger
1-29 vehicle that:
1-30 (A) is registered in this state; and
1-31 (B) has a gross weight of 25,000 pounds or less.
1-32 (4) "Traffic safety regulation" means a law or
1-33 ordinance of this state or a political subdivision of this state
1-34 relating to the operation of motor vehicles other than a regulation
1-35 relating to pedestrians or to the parking of motor vehicles.
1-36 Sec. 2. DISCOUNT AUTHORIZED. (a) An insurer who delivers
1-37 or issues for delivery in this state a motor vehicle insurance
1-38 policy, on receipt of written verification from the insured that
1-39 the insured or a family member covered by the policy is eligible
1-40 under Subsection (b), may grant a discount in the amount provided
1-41 by Subsection (c) in the premiums charged for the liability,
1-42 medical payments, personal injury protection, and collision
1-43 coverage only for the motor vehicle designated to be driven by the
1-44 honor student.
1-45 (b) To be eligible for a discount under this article, an
1-46 applicant for a discount must file with the insurer annually the
1-47 grade report issued by the school and other information that
1-48 presents evidence satisfactory to establish that the person covered
1-49 by the discount:
1-50 (1) is licensed to drive in this state;
1-51 (2) is under 25 years of age and qualifies as a
1-52 youthful driver under the Texas Department of Insurance automobile
1-53 classification plan; and
1-54 (3) is enrolled as a full-time student in:
1-55 (A) the junior or senior year of high school; or
1-56 (B) academic courses in an institution of higher
1-57 education.
1-58 (c) The commissioner by rule shall set the amount of the
1-59 discounts applicable under this article and may adopt other rules
1-60 necessary for the implementation of this article.
1-61 Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) A
1-62 person may not continue to receive a discount under this article
1-63 after the first date on which the person fails to satisfy the
1-64 requirements of Section 2(b) unless the person reestablishes
1-65 eligibility under this article.
1-66 (b) An insurer shall revoke a discount under this article if
1-67 an applicant for the discount knowingly provides false information
1-68 in or with the application.
2-1 SECTION 2. This Act takes effect September 1, 1995, and
2-2 applies only to a motor vehicle insurance policy that is delivered,
2-3 issued for delivery, or renewed on or after January 1, 1996. A
2-4 policy that is delivered, issued for delivery, or renewed before
2-5 January 1, 1996, is governed by the law as it existed immediately
2-6 before the effective date of this Act, and that law is continued in
2-7 effect for that purpose.
2-8 SECTION 3. The importance of this legislation and the
2-9 crowded condition of the calendars in both houses create an
2-10 emergency and an imperative public necessity that the
2-11 constitutional rule requiring bills to be read on three several
2-12 days in each house be suspended, and this rule is hereby suspended.
2-13 * * * * *