By Ellis S.B. No. 1141
75R4564 SAW-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to declination, cancellation, or nonrenewal of certain
1-3 insurance coverage.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading of Article 21.49-2B, Insurance Code,
1-6 is amended to read as follows:
1-7 Art. 21.49-2B. AVAILABILITY, CANCELLATION, AND NONRENEWAL OF
1-8 CERTAIN PROPERTY AND CASUALTY POLICIES
1-9 SECTION 2. Article 21.49-2B, Insurance Code, is amended by
1-10 adding Section 4A to read as follows:
1-11 Sec. 4A. GOOD DRIVER. (a) Except as otherwise provided by
1-12 this article, a motor vehicle insurer may not cancel, nonrenew, or
1-13 refuse to offer a policy of motor vehicle insurance to a good
1-14 driver. An individual is a good driver if:
1-15 (1) the individual has been licensed for at least
1-16 three years to drive the type of motor vehicle to be insured;
1-17 (2) during the previous three years, the individual
1-18 has not:
1-19 (A) been substantially at fault in a motor
1-20 vehicle accident that resulted in bodily injury, death, or property
1-21 damage;
1-22 (B) been convicted of a violation of a traffic
1-23 safety regulation that involved a moving vehicle; and
1-24 (C) had more than one dismissal of a charge
2-1 under Subchapter B, Chapter 543, Transportation Code;
2-2 (3) the individual has never made a fraudulent
2-3 insurance claim; and
2-4 (4) the individual does not drive more than 30,000
2-5 miles annually.
2-6 (b) A violation of this section is an unfair and deceptive
2-7 practice in the business of insurance under Article 21.21 of this
2-8 code. Compliance with this section does not create an exemption
2-9 from Article 21.21-6 of this code, as added by Chapter 415, Acts of
2-10 the 74th Legislature, Regular Session, 1995, or other requirements.
2-11 (c) In this section, "traffic safety regulation" means a law
2-12 or ordinance of this state or a political subdivision of this state
2-13 relating to the operation of a motor vehicle other than a
2-14 regulation relating to the conduct of a pedestrian or the parking
2-15 of a motor vehicle.
2-16 SECTION 3. Section 9, Article 21.49-2B, Insurance Code, is
2-17 amended to read as follows:
2-18 Sec. 9. INSURER STATEMENT. An insurer shall[, at the
2-19 request of an insured or an applicant for insurance,] provide a
2-20 written statement of each [the] reason for a cancellation or
2-21 nonrenewal of or determination not to issue a policy.
2-22 SECTION 4. This Act takes effect September 1, 1997, and
2-23 applies only to an insurance policy that is delivered, issued for
2-24 delivery, or renewed on or after January 1, 1998. A policy that is
2-25 delivered, issued for delivery, or renewed before January 1, 1998,
2-26 is governed by the law as it existed immediately before the
2-27 effective date of this Act, and that law is continued in effect for
3-1 that purpose.
3-2 SECTION 5. The importance of this legislation and the
3-3 crowded condition of the calendars in both houses create an
3-4 emergency and an imperative public necessity that the
3-5 constitutional rule requiring bills to be read on three several
3-6 days in each house be suspended, and this rule is hereby suspended.