SRC-SLL H.B. 1498 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1498
By: Wise (Lucio)
Economic Development
5-17-97
Engrossed


DIGEST 

Currently, insurers do not provide discounts on auto insurance to members
of youth groups such as Boy Scouts of America.  Participants in these
youth groups traditionally have good grades, excellent driving records,
lower incidences of cheating and fraud, and ethical  conduct at home and
work.  This bill will authorize an insurer to grant a discount on auto
insurance to members of a youth group. 

PURPOSE

As proposed, H.B. 1498 sets forth regulations regarding motor vehicle
insurance rates for certain individuals with good driving records who are
members of youth groups. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of insurance in
SECTION 1 (Sections 2(e) and (f), Article 5.03-5, V.T.C.S.) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 5A, Insurance Code, by adding Article 5.03-5, as
follows: 

ART.  5.03-5.  PREMIUM DISCOUNT FOR CERTAIN YOUTH GROUP MEMBERS

Sec.  1.  DEFINITIONS.  Defines "applicant," "driving record," "insurer,"
"motor vehicle," "traffic safety regulation," and "youth group." 

Sec.  2.  DISCOUNT AUTHORIZED; ELIGIBILITY CONDITIONS FOR DRIVERS.
Authorizes an insurer who delivers or issues for delivery in this state a
motor vehicle insurance policy, on receipt of written verification from
the insured that the insured or a family member covered by the policy is
eligible under Subsection (b) of this section, to grant a discount in the
amount provided by Subsection (f) of this section in the premiums charged
for liability, medical payments, personal injury protection, and collision
coverage only for the motor vehicle designated to be driven by the
eligible person.  Requires an applicant to meet certain criteria in order
to be eligible for the discount authorized under Subsection (a) of this
section.  Provides that an applicant is not eligible for a discount under
this article if the applicant has been convicted of an offense relating to
the operation of a motor vehicle under certain statutes.  Provides that,
for purposes of Subsections (b) and (c) of this section, an applicant is
considered to have been convicted in a case if a sentence is imposed or
the applicant receives community supervision or analogous treatment under
the law of another state.  Authorizes the commissioner of insurance, by
rule, to establish additional requirements for receipt of a discount under
this article.  Authorizes the commissioner of insurance, by rule, to set
the amount of the discount applicable under this article and to adopt
other rules necessary for the implementation of this article, including
rules identifying youth groups whose members are eligible for a discount
under this article. 

Sec.  3.  INELIGIBILITY; REVOCATION OF DISCOUNT.  Prohibits a person from
continuing to receive a discount under this article after the first date
on which the person fails to satisfy the requirements of Section 2 of this
article unless the person reestablishes eligibility under this article.
Prohibits a person from receiving a discount under this article  at the
same time the person is receiving a discount under Article 5.03-3 of this
code. Requires an insurer to revoke a discount under this article if an
applicant for the discount knowingly provides false information in or with
the application. 

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective to January 1, 1998.

SECTION 3. Emergency clause.