By Wise, et al. H.B. No. 1498
75R5612 DLF-D
A BILL TO BE ENTITLED
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 is organized and operated exclusively for youth recreational or
2-6 youth educational purposes, excluding a private primary or
2-7 secondary school.
2-8 Sec. 2. DISCOUNT AUTHORIZED; ELIGIBILITY CONDITIONS FOR
2-9 DRIVERS. (a) An insurer who delivers or issues for delivery in
2-10 this state a motor vehicle insurance policy, on receipt of written
2-11 verification from the insured that the insured or a family member
2-12 covered by the policy is eligible under Subsection (b) of this
2-13 section, may grant a discount in the amount provided by Subsection
2-14 (f) of this section in the premiums charged for the liability,
2-15 medical payments, personal injury protection, and collision
2-16 coverage only for the motor vehicle designated to be driven by the
2-17 eligible person.
2-18 (b) To be eligible for the discount authorized under
2-19 Subsection (a) of this section, an applicant must:
2-20 (1) be licensed to drive in this state;
2-21 (2) be a member of a youth group, including an adult
2-22 member of the group;
2-23 (3) have held a driver's license for at least three
2-24 years on the date the application is filed;
2-25 (4) have not, during the three years preceding the
2-26 date of the application, been convicted of a violation of a traffic
2-27 safety regulation that involves a moving vehicle; and
3-1 (5) have not, during the three years preceding the
3-2 date of the application, been found at fault in a motor vehicle
3-3 accident.
3-4 (c) An applicant is not eligible to receive a discount under
3-5 this article if the applicant has been convicted of an offense
3-6 relating to the operation of a motor vehicle under:
3-7 (1) Chapter 49, Penal Code;
3-8 (2) Article 6701l-1, Revised Statutes, as that statute
3-9 existed before repeal by Chapter 900, Acts of the 73rd Legislature,
3-10 Regular Session, 1993, or Section 19.05, Penal Code, as that
3-11 statute existed before amendment by Chapter 900, Acts of the 73rd
3-12 Legislature, Regular Session, 1993; or
3-13 (3) another state's statute similar to a statute
3-14 described by Subdivision (1) or (2) of this subsection.
3-15 (d) For purposes of Subsections (b) and (c) of this section,
3-16 an applicant is considered to have been convicted in a case if:
3-17 (1) a sentence is imposed; or
3-18 (2) the applicant receives community supervision or
3-19 analogous treatment under the law of another state.
3-20 (e) The commissioner by rule may establish additional
3-21 requirements for receipt of a discount under this article.
3-22 (f) The commissioner by rule shall set the amount of the
3-23 discount applicable under this article and may adopt other rules
3-24 necessary for the implementation of this article, including rules
3-25 identifying youth groups whose members are eligible for a discount
3-26 under this article.
3-27 Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) A
4-1 person may not continue to receive a discount under this article
4-2 after the first date on which the person fails to satisfy the
4-3 requirements of Section 2 of this article unless the person
4-4 reestablishes eligibility under this article.
4-5 (b) A person may not receive a discount under this article
4-6 at the same time the person is receiving a discount under Article
4-7 5.03-3 of this code.
4-8 (c) An insurer shall revoke a discount under this article if
4-9 an applicant for the discount knowingly provides false information
4-10 in or with the application.
4-11 SECTION 2. (a) This Act takes effect September 1, 1997.
4-12 (b) This Act applies only to a motor vehicle insurance
4-13 policy that is delivered, issued for delivery, or renewed on or
4-14 after January 1, 1998. A policy that is delivered, issued for
4-15 delivery, or renewed before January 1, 1998, is governed by the law
4-16 as it existed immediately before the effective date of this Act,
4-17 and that law is continued in effect for that purpose.
4-18 SECTION 3. The importance of this legislation and the
4-19 crowded condition of the calendars in both houses create an
4-20 emergency and an imperative public necessity that the
4-21 constitutional rule requiring bills to be read on three several
4-22 days in each house be suspended, and this rule is hereby suspended.