1-1 AN ACT
1-2 relating to motor vehicle insurance rates for certain individuals
1-3 with good driving records who are members of youth groups.
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 5.03-5 to read as follows:
1-7 Art. 5.03-5. PREMIUM DISCOUNT FOR CERTAIN YOUTH GROUP
1-8 MEMBERS
1-9 Sec. 1. DEFINITIONS. In this article:
1-10 (1) "Applicant" means an individual who applies under
1-11 this article for a discount in motor vehicle insurance premiums.
1-12 (2) "Driving record" means an individual's history of
1-13 convictions of violations of traffic safety regulations.
1-14 (3) "Insurer" means an insurance company,
1-15 interinsurance exchange, mutual, capital stock company, fraternal
1-16 benefit society, local mutual aid association, county mutual,
1-17 reciprocal, association, Lloyd's plan, or other entity writing
1-18 motor vehicle insurance in this state. The term includes an
1-19 affiliate, as defined by Section 2, Article 21.49-1, of this code.
1-20 (4) "Motor vehicle" means any private passenger
1-21 vehicle that:
1-22 (A) is registered in this state; and
1-23 (B) has a gross weight of 25,000 pounds or less.
1-24 (5) "Traffic safety regulation" means a law or
2-1 ordinance of a state or a political subdivision of a state relating
2-2 to the operation of motor vehicles other than a regulation relating
2-3 to pedestrians or to the parking of motor vehicles.
2-4 (6) "Youth group" means a nonprofit organization that:
2-5 (A) is chartered as a national or statewide
2-6 organization;
2-7 (B) is organized and operated exclusively for
2-8 youth recreational or educational purposes and that includes, as
2-9 part of the group's program, components relating to:
2-10 (i) prevention of drug abuse;
2-11 (ii) character development;
2-12 (iii) citizenship training; and
2-13 (iv) physical and mental fitness;
2-14 (C) has been in existence for at least 10 years;
2-15 and
2-16 (D) has a membership of which at least 65
2-17 percent is younger than 22 years of age.
2-18 Sec. 2. DISCOUNT AUTHORIZED; ELIGIBILITY CONDITIONS FOR
2-19 DRIVERS. (a) An insurer who delivers or issues for delivery in
2-20 this state a motor vehicle insurance policy, on receipt of written
2-21 verification from the insured that the insured or a family member
2-22 covered by the policy is eligible under Subsection (b) of this
2-23 section, may grant a discount in the amount provided by Subsection
2-24 (f) of this section in the premiums charged for the liability,
2-25 medical payments, personal injury protection, and collision
2-26 coverage only for the motor vehicle designated to be driven by the
2-27 eligible person.
3-1 (b) To be eligible for the discount authorized under
3-2 Subsection (a) of this section, an applicant must:
3-3 (1) be licensed to drive in this state;
3-4 (2) be a member of a youth group, including an adult
3-5 leader, board member, or officer of the group;
3-6 (3) be younger than 22 years of age or an adult
3-7 leader, board member, or officer of the group;
3-8 (4) have held a driver's license for at least three
3-9 years on the date the application is filed;
3-10 (5) have not, during the three years preceding the
3-11 date of the application, been convicted of a violation of a traffic
3-12 safety regulation that involves a moving vehicle; and
3-13 (6) have not, during the three years preceding the
3-14 date of the application, been found at fault in a motor vehicle
3-15 accident.
3-16 (c) An applicant is not eligible to receive a discount under
3-17 this article if the applicant has been convicted of an offense
3-18 relating to the operation of a motor vehicle under:
3-19 (1) Chapter 49, Penal Code;
3-20 (2) Article 6701l-1, Revised Statutes, as that statute
3-21 existed before repeal by Chapter 900, Acts of the 73rd Legislature,
3-22 Regular Session, 1993, or Section 19.05, Penal Code, as that
3-23 statute existed before amendment by Chapter 900, Acts of the 73rd
3-24 Legislature, Regular Session, 1993; or
3-25 (3) another state's statute similar to a statute
3-26 described by Subdivision (1) or (2) of this subsection.
3-27 (d) For purposes of Subsections (b) and (c) of this section,
4-1 an applicant is considered to have been convicted in a case if:
4-2 (1) a sentence is imposed; or
4-3 (2) the applicant receives community supervision or
4-4 analogous treatment under the law of another state.
4-5 (e) The commissioner by rule may establish additional
4-6 requirements for receipt of a discount under this article.
4-7 (f) The commissioner by rule shall set the amount of the
4-8 discount applicable under this article and may adopt other rules
4-9 necessary for the implementation of this article, including rules
4-10 identifying youth groups whose members are eligible for a discount
4-11 under this article.
4-12 Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) A
4-13 person may not continue to receive a discount under this article
4-14 after the first date on which the person fails to satisfy the
4-15 requirements of Section 2 of this article unless the person
4-16 reestablishes eligibility under this article.
4-17 (b) A person may not receive a discount under this article
4-18 at the same time the person is receiving a discount under Article
4-19 5.03-3 of this code.
4-20 (c) An insurer shall revoke a discount under this article if
4-21 an applicant for the discount knowingly provides false information
4-22 in or with the application.
4-23 SECTION 2. (a) This Act takes effect September 1, 1997.
4-24 (b) This Act applies only to a motor vehicle insurance
4-25 policy that is delivered, issued for delivery, or renewed on or
4-26 after January 1, 1998. A policy that is delivered, issued for
4-27 delivery, or renewed before January 1, 1998, is governed by the law
5-1 as it existed immediately before the effective date of this Act,
5-2 and that law is continued in effect for that purpose.
5-3 SECTION 3. The importance of this legislation and the
5-4 crowded condition of the calendars in both houses create an
5-5 emergency and an imperative public necessity that the
5-6 constitutional rule requiring bills to be read on three several
5-7 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1498 was passed by the House on May
5, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1498 was passed by the Senate on May
22, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor