Amend CSHB 1662 as follows:
(1) Strike SECTION 2 of the bill and substitute the
following:
SECTION 2. Title 4, Civil Practice and Remedies Code, is
amended by adding Chapter 92 to read as follows:
CHAPTER 92. LIABILITY FOR CERTAIN MOTOR VEHICLE ACCIDENTS
Sec. 92.001. LIABILITY FOR INJURY TO CERTAIN OPERATORS. (a)
A person may not obtain noneconomic damages or exemplary damages in
a civil action for bodily injury, death, or damage to or
destruction of property arising out of a motor vehicle accident if:
(1) the person was:
(A) operating a motor vehicle at the time of the
accident while intoxicated in violation of Section 49.04, Penal
Code, or another law of this state relating to the operation of a
motor vehicle while intoxicated; and
(B) convicted of an offense described by
Paragraph (A); or
(2) the person was knowingly operating the motor
vehicle at the time of the accident in violation of Section
601.051, Transportation Code.
(b) Subsection (a) does not apply to a person described by
Subsection (a)(2) if the person was injured by another person who
was:
(1) operating a motor vehicle at the time of the
accident while intoxicated in violation of Section 49.04, Penal
Code, or another law of this state relating to the operation of a
motor vehicle while intoxicated; and
(2) convicted of an offense described by Subdivision
(1).
(c) Except as provided by Subsection (d), Subsection (a)
applies to a claim for damages made by a person whose right to
recovery derives from an injury to another person whose right to
recovery of noneconomic and exemplary damages would be barred under
Subsection (a), including a claim for wrongful death or for loss of
consortium or companionship.
(d) This section does not prohibit the recovery of exemplary
damages for a wilful act or omission or gross neglect in a wrongful
death action brought by or on behalf of a surviving spouse or heirs
of the decedent's body under a statute enacted pursuant to Section
26, Article XVI, Texas Constitution. A claim for exemplary damages
described by this subsection is governed by Chapter 41.
(e) Each insurer that issues a policy of motor vehicle
insurance in this state to comply with the requirements of Chapter
601, Transportation Code, including a Lloyd's plan insurer, county
mutual insurer, or reciprocal or interinsurance exchange, shall
notify the person to whom the policy is issued of the provisions of
Subsections (a)-(d). The notice required by this subsection shall
be made at the time the policy is initially issued and at any time
coverage under the policy is terminated. The commissioner of
insurance by rule shall adopt the form and content of the notice
required by this subsection.
(f) The Department of Public Safety shall post notice of the
provisions of Subsections (a)-(d) at each facility of the
department at which an in-person application for issuance or
renewal of a license may be made.
(g) A person who offers a driving safety course approved by
the Texas Driver and Traffic Safety Education Act (Article
4413(29c), Vernon's Texas Civil Statutes) shall notify each student
in writing of the provisions of Subsections (a)-(d). The Texas
Education Agency shall adopt the form and content of the notice
required by this subsection. At the option of the person who
offers the course, the notice may be included in approved course
materials or provided separately from those materials.
(h) This section does not prohibit the person described by
Subsection (a)(1) or (2) from acting in a representative capacity
to bring suit on behalf of another person injured in the accident,
as next friend or otherwise.
(i) In this section:
(1) "Exemplary damages" has the meaning assigned by
Section 41.001.
(2) "Noneconomic damages" means damages other than
compensatory damages for pecuniary loss. The term includes damages
for physical pain and mental anguish, loss of consortium,
disfigurement, physical impairment, or loss of companionship and
society. The term does not include exemplary damages.
SECTION 3. Subchapter O, Chapter 5, Insurance Code, is
amended by adding Article 5.132 to read as follows:
Art. 5.132. TEMPORARY RATE ROLLBACK FOR AUTOMOBILE LIABILITY
INSURANCE FOR BODILY INJURY
Sec. 1. FINDINGS. The legislature finds that:
(1) the cost of litigation against insureds and their
insurers and the awarding of noneconomic damages to compensate for
a loss other than a pecuniary loss have been significant factors in
the high cost of automobile liability insurance;
(2) provisions enacted by the 75th Legislature,
Regular Session, that limit noneconomic damages paid under an
automobile liability policy will result in reductions in the cost
of litigation and the size of judgments;
(3) while the monetary effect of the legislative
changes can be actuarially determined within a reasonable degree of
certainty, insurers will delay implementation of rate reductions
until they have data evidencing actual loss experience;
(4) the delay described by Subdivision (3) of this
section will result in a windfall for the insurers benefited by the
legislation described in Subdivision (2) of this section, and this
benefit should be passed on to their insureds; and
(5) legislative action in the public interest and
within the police power of the state is required to eliminate
unnecessary delays to pass these benefits on to the insured public
of this state.
Sec. 2. SCOPE OF ARTICLE. This article applies to any
insurer that is authorized to do business in this state and that is
authorized to write automobile insurance for liability for bodily
injury, including a Lloyd's plan insurer, a reciprocal or
interinsurance exchange, or a county mutual insurer.
Sec. 3. RATE ROLLBACK. (a) Notwithstanding Article 1.33B
of this code, on or before October 1, 1997, and at subsequent
annual dates as determined by the commissioner, the commissioner
shall hold a rulemaking hearing under Chapter 2001, Government
Code, to determine the percentage of equitable reduction in
automobile liability insurance rates for coverage for liability for
bodily injury that shall be required of insurers writing automobile
liability insurance coverage.
(b) The commissioner may set the percentage of the rate
reduction based on the evidence adduced at the rulemaking hearing.
Rates resulting from the rate reduction imposed by this article
must be reasonable, adequate, not unfairly discriminatory,
nonconfiscatory, and not excessive.
(c) The rate reduction adopted under this section is
applicable to each automobile policy providing coverage for
liability for bodily injury issued, issued for delivery, or renewed
on and after January 1, 1998.
(d) Notwithstanding Subsection (c) of this section, if, on
January 1, 1998, the commissioner has not issued an order
establishing the rate reduction for automobile insurance for
coverage for liability for bodily injury, an automatic rate
reduction of 10 percent shall apply to the rate for automobile
insurance for liability for bodily injury for policies issued,
issued for delivery, or renewed on and after January 1, 1998.
(e) Any rule or order of the commissioner that determines,
approves, or sets a rate reduction under this section and is
appealed or challenged remains in effect during the pendency of the
appeal or challenge. During the pendency of the appeal or
challenge, an insurer shall use the rate as reduced in the order
being appealed or challenged, and the rate reduction shall be
lawful and valid during the appeal or challenge.
Sec. 4. ADMINISTRATIVE RELIEF. (a) Except as provided by
Subsection (b) of this section, a rate filed as to automobile
insurance for coverage for liability for bodily injury on and after
January 1, 1998, shall reflect the rate reduction imposed by
Section 3 of this article. For purposes of implementing this
article, the procedures established by Section 7, Article 5.13-2,
of this code apply if the commissioner finds that the filed rate
does not reflect the reduction.
(b) The commissioner is not required to disapprove a filed
rate that reflects less than the full amount of the rate reduction
imposed by Section 3 of this article if:
(1) the commissioner determines, based on clear and
convincing evidence, that an insurer will be financially unable to
continue to write automobile liability insurance; or
(2) the rate reduction required by Section 3 of this
article would likely result in placing the insurer in a hazardous
financial condition as described by Section 2, Article 1.32, of
this code.
Sec. 5. DURATION OF REDUCTION. Unless the commissioner
grants relief under Section 4 of this article, the reduction under
Section 3 of this article shall be made to each rate for policies
effective on and after January 1, 1998, until the commissioner
determines that sufficient data reflecting the actual effect of the
legislation enacted by the 75th Legislature, Regular Session, is
available and shall be considered at the annual automobile
benchmark rate hearings held under Article 5.101 of this code.
Sec. 6. HEARINGS AND ORDERS. Notwithstanding Article 1.33B
of this code, a rulemaking hearing under this article shall be held
before the commissioner or the commissioner's designee. Article
1.09-5 of this code does not apply to hearings under this article.
The rulemaking procedures established by this section do not apply
to any other rate promulgation proceeding.
SECTION 4. (a) Section 1 of this Act applies only to a rate
applicable to an insurance policy that is delivered, issued, issued
for delivery, or renewed on or after September 1, 1997. A rate
applicable to an insurance policy that is delivered, issued for
delivery, or renewed before September 1, 1997, is governed by the
law as it existed immediately before the effective date of this
Act, and that law is continued in effect for this purpose.
(b) Section 2 of this Act applies only to a cause of action
that accrues on or after the effective date of this Act. An action
that accrued before the effective date of this Act is governed by
the law applicable to the action immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
(c) Section 3 of this Act applies only to a rate applicable
to an insurance policy that is delivered, issued for delivery, or
renewed on or after January 1, 1998. A rate applicable to an
insurance policy that is delivered, issued for delivery, or renewed
before January 1, 1998, is governed by the law as it existed
immediately before September 1, 1997, and that law is continued in
effect for this purpose.
(2) Renumber subsequent sections of the bill appropriately.