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.


 1-5           SECTION 1.  The heading of Article 21.49-2B, Insurance Code,

 1-6     is amended to read as follows:



 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.