By Smith                                        H.B. No. 2263

      75R5252 PB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the use of accident information in the determination of

 1-3     premiums charged for private passenger motor vehicle insurance.

 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 5.01A to read as follows:

 1-7           Art. 5.01A.  USE OF CERTAIN INFORMATION BY INSURER PROHIBITED

 1-8     IN DETERMINING PREMIUMS.  (a)  In establishing premiums  for a

 1-9     policy of private passenger motor vehicle insurance, an insurer may

1-10     not charge a higher premium to an insured for coverage under the

1-11     policy based solely on a claim under the policy for damages

1-12     incurred in an accident in which the named insured or other covered

1-13     person was determined by the insurer not to be at fault.

1-14           (b)  This article applies to private passenger motor vehicle

1-15     insurance policies written by all insurers, as that term is used by

1-16     Article 5.01(a)  of this code, and includes a policy that is

1-17     delivered, issued for delivery, or renewed in this state by a

1-18     county mutual insurance company or by a surplus lines agent

1-19     regulated under Article 1.14-2 of this code.

1-20           SECTION 2.  Section 3, Article 5.101, Insurance Code, is

1-21     amended by adding Subsection (r) to read as follows:

1-22           (r)  Notwithstanding any other provision of this article, in

1-23     establishing premiums for a policy of private passenger motor

1-24     vehicle insurance, an insurer may not charge a higher premium to an

 2-1     insured for coverage under the policy based solely on a claim under

 2-2     the policy for damages incurred in an accident in which the named

 2-3     insured or other covered person was determined by the insurer not

 2-4     to be at fault.  This subsection applies to private passenger motor

 2-5     vehicle insurance policies written by all insurers, as that term is

 2-6     used by Article 5.01(a)  of this code, and includes a policy that

 2-7     is delivered, issued for delivery, or renewed in this state by a

 2-8     county mutual insurance company or by a surplus lines agent

 2-9     regulated under Article 1.14-2 of this code.

2-10           SECTION 3.  This Act takes effect September 1, 1997, and

2-11     applies only to a policy of motor vehicle insurance that is

2-12     delivered, issued for delivery, or renewed on or after January 1,

2-13     1998.  A policy that is delivered, issued for delivery, or renewed

2-14     before January 1, 1998, is governed by the law as it existed

2-15     immediately before the effective date of this Act, and that law is

2-16     continued in effect for that purpose.

2-17           SECTION 4.  The importance of this legislation and the

2-18     crowded condition of the calendars in both houses create an

2-19     emergency and an imperative public necessity that the

2-20     constitutional rule requiring bills to be read on three several

2-21     days in each house be suspended, and this rule is hereby suspended.