By Bivins S.B. No. 1933
75R6709 PB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to motor vehicle insurance coverage and liability for
1-3 motor vehicle accidents; imposing civil and criminal penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Insurance Code is amended by adding Chapter
1-6 27 to read as follows:
1-7 CHAPTER 27. MOTOR VEHICLE ACCIDENT COMPENSATION
1-8 AND COST CONTAINMENT
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Art. 27.01. DEFINITIONS. In this chapter:
1-11 (1) "Accidental injury" means a bodily injury,
1-12 sickness, or disease that is not intentionally caused by the
1-13 injured person and that arises out of the use of a motor vehicle.
1-14 The term includes a death resulting from the injury, sickness, or
1-15 disease.
1-16 (2) "Dependent" means a resident relative of a person
1-17 who receives financial or services support from that person.
1-18 (3) "Economic loss" means medical expenses, loss of
1-19 income, and replacement services loss incurred by an injured person
1-20 as the result of an accidental injury to the injured person.
1-21 (4) "Injured person" means a person who sustains an
1-22 accidental injury.
1-23 (5) "Loss of income" means the loss, during the life
1-24 of an injured person, of income the injured person would have
2-1 earned from remunerative employment or self-employment but is
2-2 unable to earn because of disability resulting from accidental
2-3 injury.
2-4 (6) "Medical expenses" means reasonable expenses that
2-5 are incurred by an injured person, a parent or guardian on behalf
2-6 of an injured person who is a minor or who has a mental disability,
2-7 or a spouse on behalf of an injured person who is deceased, and
2-8 that are incurred for necessary medical, surgical, X-ray, dental,
2-9 ambulance, hospital, medical rehabilitation, or professional
2-10 nursing services expenses. The term includes expenses for
2-11 eyeglasses, hearing aids, and prosthetic devices.
2-12 (7) "Medical rehabilitation services" means services
2-13 that are reasonably necessary and are designed to:
2-14 (A) reduce the disability and dependence of an
2-15 injured person; and
2-16 (B) restore the person, to the extent reasonably
2-17 possible, to the person's level of physical functioning before the
2-18 accidental injury.
2-19 (8) "Motorcycle" has the meaning assigned by Section
2-20 601.002, Transportation Code.
2-21 (9) "Motor vehicle" has the meaning assigned by
2-22 Section 601.002, Transportation Code.
2-23 (10) "Motor vehicle insurance" means insurance that
2-24 provides coverage for accidental injury resulting from the use of a
2-25 motor vehicle, including a policy issued under an assigned risk
2-26 plan established under Article 21.81 of this code.
2-27 (11) "Motor vehicle insurer" means any insurer writing
3-1 motor vehicle insurance in this state, including:
3-2 (A) an insurance company;
3-3 (B) an interinsurance exchange;
3-4 (C) a mutual insurance company, including a
3-5 county mutual insurance company;
3-6 (D) a reciprocal insurance company or
3-7 interinsurance exchange;
3-8 (E) a Lloyd's plan insurer; and
3-9 (F) a person qualified as a self-insurer under
3-10 Section 601.124, Transportation Code.
3-11 (12) "Noneconomic loss" means a detriment other than
3-12 economic loss for which damages would be recoverable under the law
3-13 of this state in the absence of this chapter. The term includes
3-14 pain, suffering, inconvenience, and mental anguish.
3-15 (13) "Occupying" means, in the context of occupying a
3-16 motor vehicle:
3-17 (A) to be in or on a motor vehicle; or
3-18 (B) to be engaged in the immediate act of
3-19 entering into or alighting from the motor vehicle.
3-20 (14) "Owner" means:
3-21 (A) the person in whose name a motor vehicle has
3-22 been registered; or
3-23 (B) if no registration is in effect at the time
3-24 of an accident involving the motor vehicle:
3-25 (i) the person holding legal title to the
3-26 motor vehicle; or
3-27 (ii) if the motor vehicle is the subject
4-1 of a security agreement or lease with the option to purchase, a
4-2 debtor or lessee who has the right to possess the vehicle.
4-3 (15) "Person" includes an individual, corporation,
4-4 organization, or any other legal entity.
4-5 (16) "Personal compensation coverage" means coverage
4-6 that provides first party benefits in accordance with Article
4-7 27.31(a) of this code.
4-8 (17) "Personal compensation insured" means a person
4-9 entitled to personal compensation benefits under Article 27.33 of
4-10 this code.
4-11 (18) "Replacement services loss" means expenses
4-12 reasonably incurred in obtaining ordinary and necessary services
4-13 from a person who is not a member of the injured person's
4-14 household.
4-15 (19) "Resident relative" means a person who is related
4-16 by blood, marriage, or adoption to an insured or an injured person
4-17 and who:
4-18 (A) resides in the same household as the insured
4-19 or injured person; or
4-20 (B) temporarily resides in a place other than
4-21 the household of the insured or injured person, but who usually
4-22 makes a home in the same family unit.
4-23 (20) "Uninsured motor vehicle" means a motor vehicle
4-24 that is:
4-25 (A) not covered by motor vehicle insurance that
4-26 meets the requirements of Chapter 601, Transportation Code; or
4-27 (B) owned by a person whose identity is unknown
5-1 and unascertainable.
5-2 Art. 27.02. RULES. The commissioner may adopt rules for the
5-3 administration of this chapter.
5-4 Art. 27.03. CONSTRUCTION OF NONCONFORMING POLICIES. In any
5-5 controversy regarding the terms of a motor vehicle insurance
5-6 policy, a motor vehicle insurance policy that is delivered, issued
5-7 for delivery, or renewed in this state shall be construed to comply
5-8 with this chapter.
5-9 Art. 27.04. ARBITRATION. (a) A dispute between a motor
5-10 vehicle insurer and a personal compensation insured or a dependent
5-11 of the insured shall be submitted to arbitration on the request of
5-12 either party in accordance with this article.
5-13 (b) Each party shall select an arbitrator. The two
5-14 arbitrators selected by the parties shall select a third
5-15 arbitrator.
5-16 (c) A written decision signed by any two arbitrators is
5-17 binding on each party to the dispute.
5-18 Art. 27.05. USE OF MOTOR VEHICLE. For the purposes of this
5-19 chapter:
5-20 (1) a person is using a motor vehicle if the person is
5-21 operating or occupying the vehicle; and
5-22 (2) a person is not using a motor vehicle if the
5-23 person is not occupying the vehicle and the person is:
5-24 (A) manufacturing the vehicle;
5-25 (B) selling the vehicle;
5-26 (C) loading or unloading the vehicle; or
5-27 (D) maintaining the vehicle, including
6-1 repairing, servicing, or washing the vehicle.
6-2 Art. 27.06. UNITED STATES AS OWNER. This chapter does not
6-3 apply to the United States as an owner of a motor vehicle except
6-4 with respect to motor vehicles for which the United States has
6-5 elected to provide insurance.
6-6 Art. 27.07. DISCOVERY. In any dispute between a claimant
6-7 and an insurer regarding discovery of facts about an injured
6-8 person, a court of record may enter an order for discovery as
6-9 justice requires, unless the dispute is referred to arbitration
6-10 under Article 27.04 of this code.
6-11 Art. 27.08. DECLARATORY JUDGMENT. (a) The validity of this
6-12 chapter or any part of this chapter may be determined in an action
6-13 for declaratory judgment in a district court in Travis County under
6-14 Chapter 37, Civil Practice and Remedies Code.
6-15 (b) An appeal of a declaratory judgment, including an appeal
6-16 to the supreme court, holding this chapter or a portion of this
6-17 chapter valid or invalid under the state or federal constitution is
6-18 an accelerated appeal governed by Rule 42, Texas Rules of Appellate
6-19 Procedure.
6-20 (Articles 27.09-27.20 reserved for expansion
6-21 SUBCHAPTER B. COVERAGE REQUIRED
6-22 Art. 27.21. PERSONAL COMPENSATION COVERAGE REQUIRED. Except
6-23 as provided by Subchapter J of this chapter, a motor vehicle
6-24 insurance policy delivered, issued for delivery, or renewed in this
6-25 state must provide coverage that complies with Article 27.31 of
6-26 this code.
6-27 Art. 27.22. BENEFITS PAYABLE WITHOUT REGARD TO FAULT. A
7-1 benefit under personal compensation coverage is payable without
7-2 regard to the fault of the personal compensation insured in the
7-3 accident that caused the injury.
7-4 Art. 27.23. OUT-OF-STATE CLAIMS AND COVERAGE. (a) A motor
7-5 vehicle insurance policy must provide personal compensation
7-6 coverage for the accidental injury of a personal compensation
7-7 insured that is sustained within the United States, a territory or
7-8 possession of the United States, or Canada.
7-9 (b) If a motor vehicle covered under a motor vehicle
7-10 insurance policy is in an accident in another jurisdiction that
7-11 requires a higher minimum amount of coverage, the policy must
7-12 provide at least the minimum amount of insurance coverage required
7-13 by the laws of that jurisdiction. If the jurisdiction requires a
7-14 different type of coverage, the policy must also provide that
7-15 coverage. However, a person may not be compensated both under
7-16 personal compensation coverage and under additional coverage
7-17 provided to comply with this subsection.
7-18 (c) A motor vehicle insurer who transacts business in this
7-19 state must file with the commissioner, as a condition of the
7-20 continued transaction of business in this state by that insurer, a
7-21 form approved by the commissioner stating that any contract of
7-22 primary motor vehicle insurance, wherever issued, covering the use
7-23 of a motor vehicle while the motor vehicle is in this state,
7-24 provides personal compensation coverage, death benefits, and
7-25 property damage liability insurance at levels required by the law
7-26 of this state. A nonadmitted insurer may also file this form.
7-27 (Articles 27.24-27.30 reserved for expansion
8-1 SUBCHAPTER C. COVERAGE; BENEFITS
8-2 Art. 27.31. PERSONAL COMPENSATION BENEFITS, DEATH BENEFIT,
8-3 AND LIABILITY COVERAGE. (a) A motor vehicle insurance policy must
8-4 provide at least $20,000 in first party personal compensation
8-5 benefits for each personal compensation insured in any one
8-6 accident. Benefits under this subsection include the following
8-7 benefits for loss resulting from accidental injury to a personal
8-8 compensation insured:
8-9 (1) medical expenses;
8-10 (2) loss of income as computed under Article 27.40 of
8-11 this code, not to exceed $200 per week; and
8-12 (3) replacement services loss, not to exceed $100 per
8-13 week.
8-14 (b) A motor vehicle insurer may offer a per-person
8-15 deductible applicable to benefits for medical expenses. The
8-16 deductible may be applicable only to claims of the named insured
8-17 and of a resident relative of the named insured. The named insured
8-18 may refuse a deductible offered under this subsection. The
8-19 acceptance of a deductible under this subsection by a named insured
8-20 is binding on a resident relative of the named insured.
8-21 (c) A motor vehicle policy must provide a death benefit in
8-22 the amount of $5,000 for the death of a person entitled to first
8-23 party personal compensation benefits under this subchapter. The
8-24 death benefit required by this subsection is in addition to first
8-25 party personal compensation benefits payable as a result of the use
8-26 of the motor vehicle and is payable to the estate of the deceased.
8-27 Art. 27.32. OTHER COVERAGE. (a) A motor vehicle insurer
9-1 may make available personal compensation insurance that provides
9-2 benefits in addition to and different from the benefits described
9-3 by Article 27.31(a) of this code.
9-4 (b) Subject to approval by the commissioner, a motor vehicle
9-5 insurer may make available personal compensation coverage without a
9-6 deductible or subject to a reasonable deductible different from the
9-7 deductible required under Article 27.31(b) of this code. A
9-8 deductible applicable to coverage for medical expenses is subject
9-9 to Article 27.31(b) of this code.
9-10 Art. 27.33. COVERED PERSONS. Personal compensation coverage
9-11 provides benefits for:
9-12 (1) any person identified by name as an insured under
9-13 the personal compensation insurance policy;
9-14 (2) any resident relative of the first person
9-15 identified by name as an insured under the policy; and
9-16 (3) any person who sustains an accidental injury in
9-17 this state:
9-18 (A) while occupying a motor vehicle insured by
9-19 the policy; or
9-20 (B) through being struck by a motor vehicle
9-21 insured by the policy.
9-22 Art. 27.34. PERSONS EXCLUDED FROM COVERAGE. (a) Except as
9-23 provided by Subsection (b) of this article, a motor vehicle
9-24 insurance policy may not provide personal compensation coverage for
9-25 a person who is injured while:
9-26 (1) committing a felony;
9-27 (2) voluntarily using a motor vehicle that the injured
10-1 person knows is stolen;
10-2 (3) driving while intoxicated;
10-3 (4) using a motor vehicle owned by, or furnished or
10-4 available for the regular use of, the injured person or the injured
10-5 person's resident relative, if the motor vehicle is not described
10-6 in the policy under which a claim is made and is not a newly
10-7 acquired or replacement motor vehicle covered under the terms of
10-8 the policy;
10-9 (5) using a motor vehicle that is not covered by motor
10-10 vehicle insurance that meets the requirements of Chapter 601,
10-11 Transportation Code, if the injured person is not a named insured
10-12 or a resident relative of a named insured; or
10-13 (6) engaging in intentional misconduct.
10-14 (b) A motor vehicle insurance policy may include personal
10-15 compensation coverage for a person mentioned in Subsection (a) of
10-16 this article only if language clearly manifesting an intent to
10-17 provide that coverage is included in the policy.
10-18 (c) In this article:
10-19 (1) "Intentional misconduct" means an act or omission
10-20 by an injured person that causes or substantially contributes to
10-21 harm and that the actor commits for the purpose of causing harm or
10-22 knowing that harm is substantially certain to follow. An act or
10-23 omission is not intentional misconduct:
10-24 (A) solely because the act or omission was
10-25 intentional or committed with the knowledge that the act or
10-26 omission creates a grave risk of causing harm; or
10-27 (B) if committed for the purpose of averting
11-1 bodily harm to any person.
11-2 (2) "Intoxicated" has the meaning assigned by Section
11-3 49.01, Penal Code.
11-4 (d) For purposes of this article, if a peace officer
11-5 requests that an injured person submit to a test of blood, breath,
11-6 or urine in connection with the accident, the person shall be
11-7 considered to have been driving while intoxicated at the time of
11-8 the accident if the person:
11-9 (1) refuses to submit to the test;
11-10 (2) does not submit to the test and does not expressly
11-11 agree to submit to the test; or
11-12 (3) refuses to complete the test.
11-13 Art. 27.35. MEDICAL EXPENSE BENEFIT PAYMENT LIMITS. (a) A
11-14 person may not require, request, or accept a payment for a
11-15 treatment, accommodation, product, or service for an injured person
11-16 who is a personal compensation insured if the amount of the payment
11-17 exceeds the amount authorized by this article.
11-18 (b) Payment for a treatment, accommodation, product, or
11-19 service may not exceed the lesser of:
11-20 (1) the provider's usual and customary charge; or
11-21 (2) 110 percent of the fee schedule, prevailing
11-22 charge, recommended fee, inflation index charge, or
11-23 diagnostic-related groups payment that applies to the particular
11-24 specialty service and that was determined to be applicable in this
11-25 state under the Medicare program created under Part A and Part B,
11-26 Title XVIII, Social Security Act (42 U.S.C. Section 1395 et seq.),
11-27 for comparable treatments, accommodations, products, or services at
12-1 the time and place the treatments, accommodations, products, or
12-2 services were provided.
12-3 (c) If a fee schedule, prevailing charge, recommended fee,
12-4 inflation index charge, or diagnostic-related groups payment has
12-5 not been computed under the Medicare program for a treatment,
12-6 accommodation, product, or service, the amount of the payment may
12-7 not exceed 80 percent of the provider's usual and customary charge
12-8 for that treatment, accommodation, product, or service.
12-9 (d) This article does not require payment of pass through
12-10 costs.
12-11 Art. 27.36. PAYMENT FOR PRIVATE ROOM EXCLUDED. The medical
12-12 expense benefit under personal compensation coverage does not
12-13 include any portion of a charge for a room in a hospital, clinic,
12-14 convalescent or nursing home, extended care facility, or any
12-15 similar facility in excess of the reasonable and customary charge
12-16 for semiprivate accommodations, unless a private accommodation is
12-17 determined to be medically required.
12-18 Art. 27.37. PAYMENT FOR EXPERIMENTAL TREATMENT, SERVICE,
12-19 PRODUCT, OR PROCEDURE EXCLUDED. The medical expense benefit under
12-20 personal compensation coverage does not include payment for a
12-21 treatment, service, product, or procedure that is:
12-22 (1) experimental in nature;
12-23 (2) for research or not primarily designed to serve a
12-24 medical purpose; or
12-25 (3) not commonly and customarily recognized throughout
12-26 the medical profession and within the United States as appropriate
12-27 for treatment of the injury.
13-1 Art. 27.38. MEDICAL EXPENSE BENEFIT; LIMITATION. The
13-2 medical expense benefit under personal compensation coverage is not
13-3 payable for medical expenses that accrue after the second
13-4 anniversary of the date of the accident.
13-5 Art. 27.39. REVIEW OF MEDICAL EXPENSES. A motor vehicle
13-6 insurer may review medical expenses before, during, and after the
13-7 course of treatment of an injured person to ensure that the
13-8 expenses are reasonable and necessary and may submit the expenses
13-9 to peer review under Subchapter F of this chapter.
13-10 Art. 27.40. COMPUTATION OF LOSS OF INCOME BENEFIT. (a) In
13-11 computing the amount of loss of income of an injured person, it is
13-12 presumed, absent a contrary showing, that the injured person's loss
13-13 of income for a period is the product of:
13-14 (1) the number of weeks in the period that the injured
13-15 person probably would have worked had the injured person not been
13-16 disabled; and
13-17 (2) the injured person's probable weekly income if
13-18 employed as determined under Subsections (c), (d), (e), and (f) of
13-19 this article.
13-20 (b) Loss of income does not include income for any period in
13-21 which the injured person probably would not have worked had the
13-22 injured person not been disabled.
13-23 (c) For an injured person who was regularly employed or
13-24 self-employed or had been regularly employed or self-employed
13-25 during the three months before the accident, the injured person's
13-26 probable weekly income if employed is the person's probable annual
13-27 income divided by 52. The injured person's probable annual income
14-1 is the greater of:
14-2 (1) 12 times the monthly gross income earned by the
14-3 injured person from work in the month before the month in which the
14-4 accident resulting in injury occurred; or
14-5 (2) the average income earned by the injured person
14-6 during the two calendar years preceding the year in which the
14-7 accident occurred.
14-8 (d) For an injured person who was seasonally or irregularly
14-9 employed at the time of the accident resulting in injury, or who
14-10 had been unemployed for at least the three months before the
14-11 accident but less than the two years before the accident, the
14-12 injured person's probable weekly income if employed is the total
14-13 gross income of the injured person during the prior two years
14-14 divided by the number of weeks in which the injured person worked
14-15 during that period.
14-16 (e) For an injured person who had not been remuneratively
14-17 employed or self-employed within the two years next preceding the
14-18 accident resulting in injury, the injured person's probable weekly
14-19 income if employed is presumed to be zero. The injured person may
14-20 rebut the presumption by proof that the person would have been
14-21 employed during the first year after the accident.
14-22 (f) In the case of an injured person who rebuts the
14-23 presumption established by Subsection (e) of this article, the
14-24 probable weekly income if employed is presumed not to exceed 80
14-25 percent of the average weekly gross income of a production or
14-26 nonsupervisory worker in the private nonfarm economy in the state
14-27 in which the injured person was domiciled during the year preceding
15-1 the year in which the accident occurred.
15-2 (g) Except as provided by Subsection (h) of this article, if
15-3 an injured person is disabled from performing one or more but less
15-4 than all duties of the injured person's usual and customary
15-5 occupation, the injured person's loss of income does not include
15-6 any portion of the injured person's probable income that the
15-7 injured person reasonably could earn despite the disability.
15-8 (h) If it is more reasonable for the injured person to
15-9 engage in available substitute work than to perform the person's
15-10 usual and customary occupation, the loss of income shall be reduced
15-11 by:
15-12 (1) 90 percent of any income from substitute work
15-13 actually performed; and
15-14 (2) 100 percent of any income the injured person would
15-15 have earned in available appropriate substitute work that the
15-16 injured person was capable of performing but unreasonably failed to
15-17 perform.
15-18 (i) Loss of income does not include any loss of income
15-19 occurring after the death of the injured person, without regard to
15-20 the cause of the loss.
15-21 Art. 27.41. REPLACEMENT SERVICES BENEFIT; LIMITATION. (a)
15-22 An injured person is not entitled to the benefit for replacement
15-23 services under personal compensation coverage during a period in
15-24 which the person is receiving the benefit for loss of income.
15-25 (b) The replacement services benefit does not include loss
15-26 that accrues after the death of the injured person.
15-27 (c) The replacement services benefit is not payable for loss
16-1 that accrues after the second anniversary of the date of the
16-2 accident.
16-3 Art. 27.42. DEATH BENEFIT; LIMITATION. A death benefit
16-4 under personal compensation coverage may be paid only if the death
16-5 of an injured person occurs before the first anniversary of an
16-6 accidental injury that directly and proximately caused the death.
16-7 (Articles 27.43-27.50 reserved for expansion
16-8 SUBCHAPTER D. PAYMENT OF PERSONAL COMPENSATION BENEFITS
16-9 Art. 27.51. PROMPT PAYMENT OF CLAIMS. Except as provided by
16-10 Subchapter F of this chapter, Article 21.55 of this code applies to
16-11 payment of claims under this chapter.
16-12 Art. 27.52. PERSONS TO WHOM PAYMENT IS MADE. A motor
16-13 vehicle insurer shall pay personal compensation benefits, at the
16-14 option of the insurer, to:
16-15 (1) the injured person;
16-16 (2) the parent or guardian of the injured person, if
16-17 the injured person is a minor or is incapacitated;
16-18 (3) a dependent, executor, or administrator of an
16-19 injured person who is deceased; or
16-20 (4) the person or organization rendering the services
16-21 for which payment is due.
16-22 Art. 27.53. VERIFICATION OF ENTITLEMENT TO BENEFITS;
16-23 EMPLOYER'S REPORT. (a) On request of an insurer providing
16-24 benefits under this chapter, an employer shall furnish pertinent
16-25 information regarding an employee who has filed a claim for
16-26 personal compensation benefits.
16-27 (b) Information provided under this article shall be
17-1 provided on a form approved by the commissioner.
17-2 Art. 27.54. VERIFICATION OF ENTITLEMENT TO BENEFITS; MEDICAL
17-3 REPORT; ACCESS TO MEDICAL DOCUMENTS. (a) On the request of an
17-4 insurer providing benefits under this chapter, a physician,
17-5 hospital, clinic, or other health care provider that, before or
17-6 after an accidental injury for which a claim is made, provides
17-7 products, services, treatments, procedures, or accommodations to
17-8 the injured person in relation to any injury, or in relation to a
17-9 condition that the injured person claims is connected with the
17-10 injury, shall furnish a written report to the insurer in accordance
17-11 with this article.
17-12 (b) A report made under this article must include the
17-13 injured person's medical history, condition, and treatment and the
17-14 dates and costs of the treatment.
17-15 (c) A report made under this article must be accompanied by
17-16 a statement, executed under penalty of perjury, that indicates, to
17-17 the best of the knowledge and belief of the person executing the
17-18 statement, whether the treatment or services rendered for the
17-19 accidental injury were reasonable and necessary for the injury and
17-20 identifies the portion of the expenses for the treatment or
17-21 services that was incurred as a result of the accidental injury.
17-22 (d) A physician, hospital, clinic, or other health care
17-23 provider shall promptly produce and permit the inspection and
17-24 copying of its records regarding the injured person's history,
17-25 condition, and treatment and the dates and costs of treatment or
17-26 services.
17-27 (e) A person may not bring a cause of action against a
18-1 physician, hospital, clinic, or other health care provider for
18-2 complying with this article. Section 5.08, Medical Practice Act
18-3 (Article 4495b, Vernon's Texas Civil Statutes), does not apply to
18-4 information provided under this article.
18-5 (f) An insurer who requests a report or record under this
18-6 article shall pay all reasonable costs connected with providing the
18-7 report or record.
18-8 (g) This article does not authorize the disclosure of
18-9 information that is confidential under federal law.
18-10 (Articles 27.55-27.60 reserved for expansion
18-11 SUBCHAPTER E. COORDINATION OF COVERAGE AND BENEFITS
18-12 Art. 27.61. PRIORITY FOR PAYMENT OF BENEFITS. (a) A person
18-13 who is entitled to personal compensation benefits is entitled to at
18-14 least the personal compensation coverage under a policy in which
18-15 the person is a named insured or the resident relative of a named
18-16 insured. The motor vehicle insurer shall pay personal compensation
18-17 benefits for the claims of the named insured or a resident relative
18-18 of the named insured before paying other claims arising from an
18-19 accident.
18-20 (b) If the limits of the personal compensation benefits for
18-21 the accident are not exhausted after payment of claims under
18-22 Subsection (a) of this article, the insurer shall pay personal
18-23 compensation benefits for the claims of other personal compensation
18-24 insureds.
18-25 (c) If more than one motor vehicle insurer is obligated to
18-26 pay personal compensation benefits, the insurer against whom the
18-27 claim is first made shall pay the claim. That insurer may recover
19-1 a pro rata contribution for the payment and processing of the claim
19-2 from any other motor vehicle insurer obligated to pay the benefits.
19-3 In recovering a contribution under this subsection, the insurer has
19-4 the same priority as the injured person would have had under this
19-5 article.
19-6 Art. 27.62. PARKED VEHICLES; EXCLUSION. For purposes of
19-7 determining whether a motor vehicle insurance policy provides
19-8 coverage for a personal compensation insured other than the named
19-9 insured or a resident relative of a named insured for a particular
19-10 accident, a motor vehicle described by the policy is not involved
19-11 in the accident if the vehicle is parked and unoccupied during the
19-12 accident, unless the manner in which the vehicle is parked caused
19-13 an unreasonable risk of the injury that occurred.
19-14 Art. 27.63. MULTIPLE COVERAGES. (a) The limit of the
19-15 policy applying to the motor vehicle involved in the accident for a
19-16 coverage or benefit under a personal compensation insurance policy
19-17 may not be added to, combined with, or otherwise stacked on the
19-18 policy limit for any other coverage or benefit provided under that
19-19 policy or another policy to determine the total limit of coverage
19-20 available to an injured person for an accident. This subsection
19-21 applies notwithstanding the number of:
19-22 (1) motor vehicles involved in the accident;
19-23 (2) personal compensation insureds;
19-24 (3) claims made for the accident;
19-25 (4) motor vehicles or premiums shown on the policies;
19-26 or
19-27 (5) premiums paid.
20-1 (b) A policy may provide that if two or more policies apply
20-2 to the same accident, and none of the vehicles covered by the
20-3 policy are involved in the accident, the highest policy limit for a
20-4 coverage or benefit applicable to the accident is the policy limit
20-5 for that coverage or benefit in the policy that provides the
20-6 highest limit for that coverage or benefit.
20-7 Art. 27.64. COLLATERAL SOURCES OF BENEFITS. (a) A motor
20-8 vehicle insurer shall pay personal compensation benefits to a
20-9 personal compensation insured, notwithstanding coverage other than
20-10 personal compensation coverage that provides benefits for the same
20-11 injury, except as provided by Subsection (b) of this article.
20-12 (b) The amount of personal compensation benefits is reduced
20-13 by the amount of a benefit paid under Title 5, Labor Code.
20-14 (c) Except as provided by Subsection (b) of this article,
20-15 coverage other than personal compensation coverage is excess
20-16 coverage for any accidental injury covered by a personal
20-17 compensation insurance policy.
20-18 (Articles 27.65-27.70 reserved for expansion
20-19 SUBCHAPTER F. COST CONTAINMENT; PEER REVIEW
20-20 Art. 27.71. MANAGED CARE. (a) Except as provided by
20-21 Subsection (b) of this article, a motor vehicle insurer may use a
20-22 managed care system to pay for medical expense benefits or may
20-23 require a personal compensation insured to obtain health care
20-24 through a managed care system designed by the insurer if:
20-25 (1) the commissioner approves the use of the managed
20-26 care system;
20-27 (2) the named insured elected to be subject to a
21-1 managed care system at the time the policy was purchased; and
21-2 (3) the policy premium is reduced in accordance with
21-3 rules adopted by the commissioner.
21-4 (b) A motor vehicle insurer may not require a personal
21-5 compensation insured other than the named insured or a resident
21-6 relative of the named insured to obtain health care through a
21-7 managed care system.
21-8 (c) For purposes of this article, "managed care system"
21-9 includes a health maintenance organization or preferred provider
21-10 organization.
21-11 Art. 27.72. SAFETY EQUIPMENT. Each motor vehicle insurer
21-12 may adopt an actuarially sound program that provides incentives, in
21-13 the form of increased benefits or reduced premiums or in another
21-14 form, for insureds to install, maintain, and use injury-reducing
21-15 devices, including seat and harness belts, air bags, and child
21-16 restraint systems.
21-17 Art. 27.73. PEER REVIEW. (a) A motor vehicle insurer that
21-18 provides personal compensation coverage shall contract with a peer
21-19 review organization, either jointly with other insurers or
21-20 individually.
21-21 (b) This article does not apply to a self-insurer.
21-22 Art. 27.74. POWERS OF PEER REVIEW ORGANIZATION. (a) A peer
21-23 review organization may determine whether:
21-24 (1) health care treatment and services provided to an
21-25 injured person are medically necessary and medically appropriate
21-26 and meet professional standards of performance; and
21-27 (2) the injury for which health care treatment or
22-1 services are provided was caused by a motor vehicle accident.
22-2 (b) A peer review organization may not mediate disputes over
22-3 appropriate charges, costs, or payments and may not administer
22-4 claims for a motor vehicle insurer.
22-5 Sec. 27.75. CONFLICT OF INTEREST. (a) A peer review
22-6 organization owned in whole or in part by a motor vehicle insurer
22-7 may not review treatment or services for which that insurer has
22-8 been billed.
22-9 (b) An employee of a peer review organization may not review
22-10 treatment or services provided to an injured person by an
22-11 institution or agency in which the peer review organization has a
22-12 financial interest.
22-13 Art. 27.76. REFERRAL OF BILL. (a) A motor vehicle insurer
22-14 may refer a health care provider's bill to a peer review
22-15 organization if the insurer believes that a peer review
22-16 organization should evaluate the bill under Article 27.74 of this
22-17 code.
22-18 (b) A referral under this article must be made not later
22-19 than the 90th day after the date the motor vehicle insurer receives
22-20 the health care provider's bill and reasonable documentation
22-21 supporting the bill. At the time of the referral, the insurer
22-22 shall notify the health care provider of the referral in writing.
22-23 Art. 27.77. EFFECT OF REFERRAL. (a) Notwithstanding any
22-24 other provision of this code, if a motor vehicle insurer makes a
22-25 referral under Article 27.76 of this code not later than the 30th
22-26 day after the date the insurer receives the bill for medical
22-27 treatment and reasonable documentation supporting the bill, the
23-1 insurer is not required to pay the health care provider until a
23-2 determination has been made by the peer review organization.
23-3 (b) If the motor vehicle insurer makes the referral after
23-4 the 30th day, the insurer shall pay the health care provider's
23-5 bill.
23-6 Art. 27.78. REQUEST FOR INFORMATION; INDEPENDENT MEDICAL
23-7 EXAMINATION. (a) Not later than the 30th day after the date a
23-8 peer review organization receives a referral under Article 27.76 of
23-9 this code, the organization shall request in writing, from the
23-10 health care provider, the records and documents necessary for its
23-11 review.
23-12 (b) The peer review organization shall permit the health
23-13 care provider to submit additional information during the review
23-14 process.
23-15 (c) The peer review organization may order an independent
23-16 medical examination of the injured person if the peer review
23-17 organization considers the examination necessary to determine
23-18 whether the injuries for which treatment and services are provided
23-19 were caused by a motor vehicle accident. If an injured person
23-20 unreasonably refuses to submit to the examination, the motor
23-21 vehicle insurer may suspend payment of benefits to that person that
23-22 accrue after the date of the refusal.
23-23 Art. 27.79. INITIAL DETERMINATION. (a) A peer review
23-24 organization shall make an initial determination not later than the
23-25 30th day after the later of the date of:
23-26 (1) the receipt of information requested by the
23-27 organization under Article 27.78 of this code; or
24-1 (2) the receipt of additional information submitted by
24-2 the health care provider under that article.
24-3 (b) A peer review organization's initial determination shall
24-4 be made by a licensed practitioner of the same specialty as the
24-5 health care provider who provided the care that is the subject of
24-6 the review or by a licensed practitioner who has had experience
24-7 providing and prescribing the care that is the subject of the
24-8 review.
24-9 (c) Not later than the fifth business day after the date of
24-10 determination, the peer review organization shall provide to the
24-11 motor vehicle insurer, health care provider, and injured person a
24-12 written analysis of its determination. The analysis must include
24-13 the reasons supporting the determination.
24-14 Art. 27.80. RECONSIDERATION OF DETERMINATION. (a) A motor
24-15 vehicle insurer, health care provider, or injured person may
24-16 request reconsideration of the initial determination made by a peer
24-17 review organization. A request made under this subsection must be
24-18 made in writing not later than the 30th day after the date the
24-19 analysis of the initial determination is provided under Article
24-20 27.79(c) of this code.
24-21 (b) The reconsideration of the initial determination shall
24-22 be made by a licensed practitioner of the same specialty as the
24-23 health care provider. The person making the reconsideration may not
24-24 be the same person who made the peer review organization's initial
24-25 determination.
24-26 (c) The reconsideration of the initial determination must be
24-27 based on the information submitted with respect to the initial
25-1 determination, any new information found in medical records, or
25-2 additional evidence submitted by the person or entity requesting
25-3 the reconsideration.
25-4 (d) The peer review organization shall complete a
25-5 reconsideration under this article not later than the 30th day
25-6 after the later of the date on which:
25-7 (1) the review was requested; or
25-8 (2) the organization received the new or additional
25-9 evidence under Subsection (c) of this article.
25-10 Art. 27.81. JUDICIAL REVIEW. Following a reconsideration by
25-11 a peer review organization under Article 27.80 of this code, a
25-12 motor vehicle insurer, health care provider, or injured person may
25-13 obtain judicial review of the determination. A person must request
25-14 reconsideration of the determination under Article 27.80 of this
25-15 code before commencing any action for review of the determination
25-16 in court.
25-17 Art. 27.82. PAYMENT FOLLOWING DETERMINATION. (a) If a peer
25-18 review organization determines that health care treatment or
25-19 services provided to an injured person conformed to professional
25-20 standards of performance and were medically necessary and
25-21 appropriate, the motor vehicle insurer shall pay to the health care
25-22 provider the outstanding amount plus interest, at an annual rate of
25-23 10 percent, on any amount withheld by the insurer.
25-24 (b) If the determination of a peer review organization is
25-25 reviewed by a court, and if the court determines that health care
25-26 treatment or services provided to an injured person conformed to
25-27 professional standards of performance and were medically necessary
26-1 and appropriate, the motor vehicle insurer shall pay to the health
26-2 care provider:
26-3 (1) any outstanding amount plus interest, at an annual
26-4 rate of 10 percent;
26-5 (2) the health care provider's costs in participating
26-6 in the review; and
26-7 (3) reasonable attorney's fees and costs incurred by
26-8 the health care provider with respect to the judicial review of the
26-9 peer review organization's determination.
26-10 (c) If a peer review organization, or a court reviewing a
26-11 peer review organization determination, determines that health care
26-12 treatment or services provided did not conform to professional
26-13 standards of performance or were not medically necessary or
26-14 appropriate, or that future provision of the health care treatment
26-15 or services would be medically unnecessary or inappropriate, the
26-16 motor vehicle insurer may not pay the health care provider for the
26-17 medically unnecessary, inappropriate, or unprofessionally provided
26-18 health care treatment or services. If the insurer has paid the
26-19 health care provider, the provider must return, not later than the
26-20 30th day after the date the provider receives notice of the
26-21 determination, the amount paid plus interest at an annual rate of
26-22 10 percent. An injured person is not responsible for any amount
26-23 the health care provider fails to pay under this subsection.
26-24 (Articles 27.83-27.90 reserved for expansion
26-25 SUBCHAPTER G. RIGHTS AND DUTIES OF PERSONAL COMPENSATION
26-26 INSUREDS
26-27 Art. 27.91. ASSIGNMENT OR GARNISHMENT OF PERSONAL
27-1 COMPENSATION BENEFITS. (a) Personal compensation benefits, other
27-2 than those for medical expenses, are exempt from garnishment,
27-3 attachment, execution, and any other process or claim to the same
27-4 extent that wages or earnings are exempt under law.
27-5 (b) An agreement to assign a right to a personal
27-6 compensation benefit, other than a medical benefit, that is payable
27-7 in the future is unenforceable except to the extent that:
27-8 (1) the assignment compensates the assignee for a
27-9 product, service, or accommodation provided or to be provided by
27-10 the assignee; or
27-11 (2) the assignment is of benefits for loss of income
27-12 or replacement services and is assigned to pay alimony, spousal
27-13 maintenance, or child support.
27-14 Art. 27.92. CANCELLATION, NONRENEWAL, OR PREMIUM INCREASE
27-15 FOLLOWING CLAIM. (a) A motor vehicle insurer may not cancel,
27-16 refuse to renew, or increase the premium for a personal
27-17 compensation insurance policy because of a claim for personal
27-18 compensation benefits if a personal compensation insured was not at
27-19 fault in the accident from which the claim arose.
27-20 (b) A person may not bring a civil action for equitable
27-21 relief from or civil damages for a violation of this article.
27-22 Art. 27.93. ACTION FOR BENEFITS. Unless arbitration is
27-23 elected under Article 27.04 of this code, a person must bring an
27-24 action against a motor vehicle insurer for unpaid personal
27-25 compensation benefits:
27-26 (1) not later than the second anniversary of the date
27-27 on which the accidental injury occurred; or
28-1 (2) if some benefits have been paid, not later than
28-2 the second anniversary of the date of the last payment of benefits.
28-3 Art. 27.94. MENTAL AND PHYSICAL EXAMINATIONS. (a) If the
28-4 mental or physical condition of an injured person is material to a
28-5 claim that has been made or may be made for personal compensation
28-6 benefits, the injured person shall submit to reasonable mental or
28-7 physical examinations by a physician or physicians designated by
28-8 the motor vehicle insurer at a reasonably convenient time and
28-9 location.
28-10 (b) A personal compensation insurance policy may include a
28-11 provision stating the substance of Subsection (a) of this article.
28-12 Art. 27.95. MEDICAL OR REHABILITATION SERVICES. A motor
28-13 vehicle insurer may suspend payment of future benefits to an
28-14 injured person if:
28-15 (1) the insurer has requested that the person submit
28-16 to medical or rehabilitation services; and
28-17 (2) the person unreasonably refuses to submit to the
28-18 services.
28-19 (Articles 27.96-27.100 reserved for expansion
28-20 SUBCHAPTER H. FRAUDULENT CLAIMS
28-21 Art. 27.101. FRAUDULENT CLAIMS. A person may not:
28-22 (1) present or cause to be presented, or conspire to
28-23 present or cause to be presented, a statement in connection with a
28-24 claim for a personal compensation benefit that the person knows
28-25 contains false, incomplete, or misleading information concerning a
28-26 matter that is material to the claim; or
28-27 (2) prepare or make a statement that the person
29-1 intends to be presented to another person in connection with a
29-2 claim for a personal compensation benefit that the person knows
29-3 contains false, incomplete, or misleading information concerning a
29-4 matter that is material to the claim.
29-5 Art. 27.102. CRIMINAL OFFENSE. (a) A person commits an
29-6 offense if the person violates Article 27.101 of this code with the
29-7 intent to injure, defraud, or deceive another person.
29-8 (b) An offense under this article is punishable by a fine
29-9 not to exceed $10,000.
29-10 Art. 27.103. CIVIL RECOVERY. (a) A person who has been
29-11 injured by a violation of Article 27.101 of this code may bring an
29-12 action to recover damages against the person who committed the
29-13 violation.
29-14 (b) If a person violates Article 27.101 of this code with
29-15 the intent to injure, defraud, or deceive another person, a person
29-16 who has been injured by the violation may recover:
29-17 (1) actual damages;
29-18 (2) a penalty not to exceed twice the amount of actual
29-19 damages; and
29-20 (3) costs and attorney's fees incurred in bringing the
29-21 action.
29-22 (Articles 27.104-27.110 reserved for expansion
29-23 SUBCHAPTER I. TORT LIABILITY
29-24 Art. 27.111. TORT ACTION LIMITED. (a) Except as provided
29-25 by this subchapter and Subchapter J of this chapter, a person may
29-26 not recover damages for an accidental injury arising, in whole or
29-27 in part, out of the use of a motor vehicle in this state.
30-1 (b) Except as provided by this subchapter and Subchapter J
30-2 of this chapter, each person involved in a motor vehicle accident
30-3 in this state is subject to the tort and liability limitations of
30-4 this subchapter.
30-5 (c) This subchapter applies only to a claim for damages for
30-6 economic or noneconomic loss resulting from an accidental injury
30-7 that is caused by the negligent conduct or intentional misconduct
30-8 of another person, including a claim for loss of consortium or
30-9 companionship and any other claim brought by a person other than
30-10 the injured person.
30-11 (d) This subchapter applies to a claim made against a person
30-12 who, in the absence of this subchapter, would be vicariously liable
30-13 for the negligent conduct or intentional misconduct of another
30-14 person.
30-15 Art. 27.112. OWNER OF UNINSURED MOTOR VEHICLE.
30-16 Notwithstanding Articles 27.113 and 27.114 of this code, the owner
30-17 of an uninsured motor vehicle may not recover damages for loss
30-18 arising out of the use of the vehicle if personal compensation
30-19 benefits would have been provided had the owner complied with
30-20 Chapter 601, Transportation Code.
30-21 Art. 27.113. UNCOMPENSATED ECONOMIC LOSS. (a) A person may
30-22 bring a cause of action to recover damages for uncompensated
30-23 economic loss arising, in whole or in part, out of the use of a
30-24 motor vehicle.
30-25 (b) In this article, "uncompensated economic loss" means the
30-26 portion of economic loss arising out of an accidental injury that
30-27 exceeds the sum of the personal compensation benefits that the
31-1 injured person is entitled to receive and benefits paid by other
31-2 persons for the same injury. The term does not include the amount
31-3 of any deductible under a personal compensation insurance policy.
31-4 Art. 27.114. MISCONDUCT. (a) A person may bring a cause of
31-5 action to recover damages for accidental injury against a person
31-6 who:
31-7 (1) caused the injury; and
31-8 (2) is convicted, in connection with the accident, of
31-9 an offense involving a motor vehicle under Chapter 49, Penal Code,
31-10 or a felony.
31-11 (b) A person who provides personal compensation benefits or
31-12 provides other benefits for the same injury as described by Article
31-13 27.64 of this code is subrogated to the claim of the injured person
31-14 against the convicted person.
31-15 (c) An insurance policy, including a policy that provides
31-16 liability coverage or uninsured motorist insurance, may not provide
31-17 liability coverage for damages recovered under this article.
31-18 Art. 27.115. INSURER'S RIGHT OF SUBROGATION. (a) A motor
31-19 vehicle insurer does not have a right to subrogation for personal
31-20 compensation benefits except as provided by this article and
31-21 Article 27.114 of this code.
31-22 (b) A motor vehicle insurer is subrogated, to the extent of
31-23 its obligation to pay personal compensation benefits, to a personal
31-24 compensation insured's rights under Article 27.114 of this code and
31-25 against any person who is not affected by the limitations on tort
31-26 rights and liabilities under this subchapter.
31-27 Art. 27.116. EFFECT OF CLAIM FOR DAMAGES ON PAYMENT OF
32-1 COMPENSATION BENEFITS. (a) Except as provided by this article, a
32-2 motor vehicle insurer shall pay personal compensation benefits due
32-3 without regard to the value of a claim for damages for the
32-4 accidental injury.
32-5 (b) After recovery under a claim for damages is realized, a
32-6 motor vehicle insurer may subtract the amount of the net recovery
32-7 from the total amount of personal compensation benefits to be paid.
32-8 (c) If payment under the personal compensation insurance
32-9 policy has already been made, the recipient of the payment shall
32-10 repay to the insurer an amount equal to the payment received, not
32-11 to exceed the amount of the net recovery. The insurer has a lien
32-12 on the recovery to the extent of the amount owed to the insurer
32-13 under this subsection.
32-14 (d) If the amount of the recovery exceeds the amount of
32-15 personal compensation benefits paid or owed by the insurer at the
32-16 time of the recovery, but the insurer is obligated to pay personal
32-17 compensation benefits in the future, the remaining amount of the
32-18 net recovery shall be subtracted from the benefits to be paid as
32-19 they become due until the amount of the recovery is exhausted. The
32-20 insurer shall reinstate payment of benefits at the time the amount
32-21 of the recovery is exhausted.
32-22 (e) In this article, "net recovery" means the amount
32-23 recovered under the claim for damages, less reasonable attorney's
32-24 fees and other reasonable expenses incurred in obtaining the
32-25 recovery.
32-26 (Articles 27.117-27.130 reserved for expansion
33-1 SUBCHAPTER J. MOTORCYCLES
33-2 Art. 27.131. COVERAGE FOR MOTORCYCLES. (a) Notwithstanding
33-3 any other provision of this chapter, and except as specifically
33-4 provided by this article, a motor vehicle insurer may not issue
33-5 insurance under this chapter that provides benefits for the owner
33-6 or operator of a motorcycle for accidental injury arising out of
33-7 the use of a motorcycle.
33-8 (b) A motor vehicle insurance policy must provide personal
33-9 compensation and death benefits under this chapter to an operator
33-10 or passenger of a motorcycle who suffers an accidental injury
33-11 arising out of an accident involving the motorcycle and another
33-12 motor vehicle other than a motorcycle. Benefits under this
33-13 subsection may be provided only to the extent the owner or operator
33-14 of the other motor vehicle would be liable for damages arising out
33-15 of the accidental injury in the absence of Subchapter I of this
33-16 chapter.
33-17 Art. 27.132. LIABILITY OF OWNER OR OPERATOR. (a) Except as
33-18 provided by this article, Subchapter I of this chapter does not
33-19 apply to damages for accidental injury arising, in whole or in
33-20 part, out of the use of a motorcycle in this state.
33-21 (b) Subchapter I of this chapter applies to accidental
33-22 injury arising out of the use of a motorcycle in this state if the
33-23 injured person is entitled to personal compensation benefits under
33-24 Article 27.131(b) of this code.
33-25 SECTION 2. Articles 5.01(e) and (f), Insurance Code, are
33-26 amended to read as follows:
33-27 (e) Motor vehicle or automobile insurance as referred to in
34-1 this subchapter shall be taken and construed to mean insurance
34-2 providing coverage for motor vehicles under Chapter 27 of this code
34-3 and every form of insurance on any [automobile or] other vehicle
34-4 hereinafter enumerated and its operating equipment or necessitated
34-5 by reason of the liability imposed by law for damages arising out
34-6 of the ownership, operation, maintenance, or use in this State of
34-7 any [automobile, motorcycle, motorbicycle, truck, truck-tractor,
34-8 tractor, traction engine, or any other] self-propelled vehicle, and
34-9 including also every vehicle, trailer or semi-trailer pulled or
34-10 towed by a motor vehicle, but excluding every motor vehicle running
34-11 only upon fixed rails or tracks. Workers' Compensation Insurance
34-12 is excluded from the foregoing definition.
34-13 (f) Notwithstanding Subsections (a) through (d) of this
34-14 article, [on and after March 1, 1992,] rates for motor vehicle
34-15 insurance in this state are determined as provided by the flexible
34-16 rating program adopted under Subchapter M of this chapter.
34-17 SECTION 3. Article 5.01B(a), Insurance Code, is amended to
34-18 read as follows:
34-19 (a) Information filed or otherwise provided by an insurer to
34-20 the State Board of Insurance for the purpose of determining,
34-21 fixing, prescribing, promulgating, altering, or amending commercial
34-22 automobile [liability] insurance rates under Article 5.01 of this
34-23 code, obtaining a rate deviation under Article 5.03 of this code,
34-24 or reporting losses under Article 5.04-1 of this code is public
34-25 information unless it is exempt under Subchapter C, Chapter 552,
34-26 Government Code [Section 3(a), Chapter 424, Acts of the 63rd
34-27 Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
35-1 Texas Civil Statutes)], or Section (b) of this article.
35-2 SECTION 4. Article 5.01-2(b), Insurance Code, is amended to
35-3 read as follows:
35-4 (b) Rates [On and after March 1, 1992, rates] for motor
35-5 vehicle insurance written by a Lloyd's plan insurer or a reciprocal
35-6 or interinsurance exchange are determined as provided by the
35-7 flexible rating program adopted under Subchapter M of this chapter.
35-8 SECTION 5. Article 5.03(g), Insurance Code, is amended to
35-9 read as follows:
35-10 (g) Notwithstanding Sections (a) through (e) of this
35-11 article, [on and after March 1, 1992,] rates for motor vehicle
35-12 insurance [vehicles] are determined as provided by Subchapter M of
35-13 this chapter.
35-14 SECTION 6. Section 2(a), Article 5.03-3, Insurance Code, is
35-15 amended to read as follows:
35-16 (a) An insurer who delivers or issues for delivery in this
35-17 state a motor vehicle insurance policy, on receipt of written
35-18 verification from the insured that the insured or a resident
35-19 relative of the first person identified by name as an insured under
35-20 [family member covered by] the policy is eligible under Subsection
35-21 (b), may grant a discount in the amount provided by Subsection (c)
35-22 in the premiums charged for [the liability, medical payments,]
35-23 personal compensation coverage [injury protection,] and collision
35-24 coverage only for the motor vehicle designated to be driven by the
35-25 honor student.
35-26 SECTION 7. Article 5.04(c), Insurance Code, is amended to
35-27 read as follows:
36-1 (c) Notwithstanding Subsections (a) and (b) of this article,
36-2 [on and after March 1, 1992,] rates for motor vehicle insurance
36-3 [vehicles] are determined as provided by Subchapter M of this
36-4 chapter.
36-5 SECTION 8. Article 5.04-1(a), Insurance Code, is amended to
36-6 read as follows:
36-7 (a) A report filed under Article 5.01(a) of this code must
36-8 include the information necessary to compute a Texas automobile
36-9 experience modifier as provided by this code or a rule adopted by
36-10 the State Board of Insurance. In reporting losses under Article
36-11 5.01(a) of this code, an insurer may include only the following as
36-12 basic limits losses:
36-13 (1) indemnity losses, up to the basic limits for the
36-14 losses;
36-15 (2) losses based on payments for immediate medical or
36-16 surgical treatment;
36-17 (3) fees paid to an attorney who is not an employee of
36-18 the insurer, if the fees were for services rendered in the trial of
36-19 an action arising under a covered claim;
36-20 (4) specific expenses incurred as a direct result of
36-21 defending an action in connection with which the expense is
36-22 claimed;
36-23 (5) specific expenses, other than claims adjustment
36-24 expenses, incurred in connection with the settlement of a claim
36-25 with respect to which the expense is claimed; and
36-26 (6) [all medical payments coverage; and]
36-27 [(7)] personal compensation [injury protection]
37-1 coverage losses.
37-2 SECTION 9. Article 5.06(1), Insurance Code, is amended to
37-3 read as follows:
37-4 (1) The Board shall adopt a policy form and endorsements for
37-5 each type of motor vehicle insurance subject to this subchapter.
37-6 The coverage provided by a policy form adopted under this
37-7 subsection is the minimum coverage that may be provided under an
37-8 insurance policy for that type of insurance in this State. [Each
37-9 policy form must provide the coverages mandated under Articles
37-10 5.06-1 and 5.06-3 of this code, except that the coverages may be
37-11 rejected by the named insured as provided by those articles.]
37-12 SECTION 10. Article 5.06-4(a), Insurance Code, is amended to
37-13 read as follows:
37-14 (a) Any insurer desiring to write commercial automobile
37-15 [liability] insurance in this state must provide loss control
37-16 information as a prerequisite for a license to write that
37-17 insurance.
37-18 SECTION 11. Article 5.06-6, Insurance Code, is amended to
37-19 read as follows:
37-20 Art. 5.06-6. COVERAGES FOR SPOUSES AND FORMER SPOUSES. A
37-21 personal automobile policy or any similar policy form adopted or
37-22 approved by the State Board of Insurance under Article 5.06 of this
37-23 code that provides coverage for an injury [covers liability]
37-24 arising out of ownership, maintenance, or use of a motor vehicle of
37-25 a spouse[,] who is otherwise insured by the policy[,] shall contain
37-26 a provision to continue coverage for the spouse during a period of
37-27 separation in contemplation of divorce.
38-1 SECTION 12. Article 5.09(c), Insurance Code, is amended to
38-2 read as follows:
38-3 (c) Notwithstanding Subsection (a) of this article, [on and
38-4 after March 1, 1992,] rates for motor vehicle insurance [vehicles]
38-5 are determined as provided by Subchapter M of this chapter.
38-6 SECTION 13. Article 5.11(c), Insurance Code, is amended to
38-7 read as follows:
38-8 (c) Notwithstanding Subsections (a) and (b) of this article,
38-9 [on and after March 1, 1992,] rates for motor vehicle insurance
38-10 [vehicles] are determined as provided by Subchapter M of this
38-11 chapter.
38-12 SECTION 14. Section 1, Article 5.101, Insurance Code, is
38-13 amended to read as follows:
38-14 Sec. 1. PURPOSE. The program on flexible rating is designed
38-15 to help stabilize the rates charged for insurance in lines of
38-16 [property and casualty] insurance covered by Subchapters A and C of
38-17 this chapter. This article does not apply to:
38-18 (1) ocean marine insurance;
38-19 (2) inland marine insurance;
38-20 (3) fidelity, surety and guaranty bond insurance;
38-21 (4) errors and omissions insurance;
38-22 (5) directors' and officers' liability insurance;
38-23 (6) general liability insurance;
38-24 (7) commercial property insurance;
38-25 (8) workers' compensation insurance;
38-26 (9) professional liability insurance for physicians
38-27 and health care providers as defined in Article 5.15-1 of this
39-1 code; or
39-2 (10) attorney's professional liability insurance.
39-3 SECTION 15. Section 3, Article 21.28-C, Insurance Code, is
39-4 amended to read as follows:
39-5 Sec. 3. Scope. (a) This Act applies to all kinds of direct
39-6 insurance, and except as provided in Section 12 of this Act, is not
39-7 applicable to the following:
39-8 (1) life, annuity, health, or disability insurance;
39-9 (2) mortgage guaranty, financial guaranty, or other
39-10 forms of insurance offering protection against investment risks;
39-11 (3) fidelity or surety bonds, or any other bonding
39-12 obligations;
39-13 (4) credit insurance, vendors' single-interest
39-14 insurance, collateral protection insurance, or any similar
39-15 insurance protecting the interests of a creditor arising out of a
39-16 creditor-debtor transaction;
39-17 (5) insurance of warranties or service contracts;
39-18 (6) title insurance;
39-19 (7) ocean marine insurance;
39-20 (8) any transaction or combination of transactions
39-21 between a person, including an affiliate of such a person, and an
39-22 insurer, including an affiliate of such an insurer, that involves
39-23 the transfer of investment or credit risk unaccompanied by the
39-24 transfer of insurance risk; or
39-25 (9) any insurance provided by or guaranteed by
39-26 government.
39-27 (b) This Act applies to motor vehicle insurance issued under
40-1 Chapter 27 of this code.
40-2 SECTION 16. Article 21.49-2A(a)(1), Insurance Code, is
40-3 amended to read as follows:
40-4 (1) "Liability insurance" means the following types of
40-5 insurance:
40-6 (A) general liability;
40-7 (B) professional liability other than medical
40-8 professional liability;
40-9 (C) commercial automobile coverage, including
40-10 coverage issued under Chapter 27 of this code [liability];
40-11 (D) commercial multiperil coverage; and
40-12 (E) any other types or lines of liability
40-13 insurance designated by the State Board of Insurance.
40-14 SECTION 17. Section 1(3), Article 21.81, Insurance Code, is
40-15 amended to read as follows:
40-16 (3) "Insurance" means an insurance policy that meets
40-17 the requirements of Chapter 27 of this code and Chapter 601,
40-18 Transportation Code [the Texas Motor Vehicle Safety-Responsibility
40-19 Act (Article 6701h, Vernon's Texas Civil Statutes)].
40-20 SECTION 18. Sections 3(a), (d), and (f), Article 21.81,
40-21 Insurance Code, are amended to read as follows:
40-22 (a) The governing committee has the responsibility for the
40-23 administration of the association through the plan of operation.
40-24 The association may collect funds from the member companies to
40-25 provide for the operation of the association. Assessments must be
40-26 made upon member companies in proportion to their writings of motor
40-27 vehicle [liability] insurance in this state. If an assessment made
41-1 upon a member insurer is not paid within a reasonable time, the
41-2 association may bring an action to collect the assessment. In
41-3 addition, the association may report the failure to pay to the
41-4 commissioner, who may institute a disciplinary action under Article
41-5 1.10 of this code. The association has the powers granted to
41-6 nonprofit corporations under the Texas Non-Profit Corporation Act
41-7 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).
41-8 (d) If the commissioner at any time believes that any part
41-9 of the plan of operation is not in keeping with the purposes of
41-10 Chapter 27 of this code or Chapter 601, Transportation Code [the
41-11 Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
41-12 Vernon's Texas Civil Statutes)], the commissioner shall notify the
41-13 governing committee in writing so that the governing committee may
41-14 take corrective action.
41-15 (f) The plan of operation must include a voluntary,
41-16 competitive limited assignment distribution plan that allows
41-17 members to contract directly with a servicing carrier to accept
41-18 assignments to that carrier by the association. A servicing
41-19 carrier must be an insurance company licensed to write automobile
41-20 insurance in this state and is qualified if it has written
41-21 automobile [liability] insurance in Texas for at least five years
41-22 or is currently engaged as a servicing carrier for assigned risk
41-23 automobile business in at least one other state. After notice and
41-24 hearing, the commissioner may prohibit an insurer from acting as a
41-25 servicing carrier. The terms of the contract between the servicing
41-26 carrier and the insurer, including the buy-out fee, shall be
41-27 determined by negotiation between the parties. The governing
42-1 committee may adopt reasonable rules for the conduct of business
42-2 under the contract and may establish reasonable standards of
42-3 eligibility for servicing carriers.
42-4 SECTION 19. Section 4(a), Article 21.81, Insurance Code, is
42-5 amended to read as follows:
42-6 (a) The association shall provide a means by which insurance
42-7 may be assigned to an authorized insurance company for a person to
42-8 provide proof of insurance under Chapter 601, Transportation Code
42-9 [required by the Texas Motor Vehicle Safety-Responsibility Act
42-10 (Article 6701h, Vernon's Texas Civil Statutes) to show proof of
42-11 financial responsibility for the future].
42-12 SECTION 20. Section 84.004(c), Civil Practice and Remedies
42-13 Code, is amended to read as follows:
42-14 (c) A volunteer of a charitable organization is liable to a
42-15 person for death, damage, or injury to the person or his property
42-16 proximately caused by any act or omission arising from the
42-17 operation or use of any motor-driven equipment, including an
42-18 airplane, [to the extent insurance coverage is required by Section
42-19 1A, Texas Motor Vehicle Safety-Responsibility Act (Article 6701h,
42-20 Vernon's Texas Civil Statutes), and] to the extent of any existing
42-21 insurance coverage applicable to the act or omission. In the case
42-22 of motor-driven equipment that is a motor vehicle, the volunteer or
42-23 charitable organization is liable only to the extent provided by
42-24 Chapter 27, Insurance Code.
42-25 SECTION 21. Section 612.001, Government Code, is amended to
42-26 read as follows:
42-27 Sec. 612.001. MOTOR VEHICLE [LIABILITY] INSURANCE FOR PEACE
43-1 OFFICERS AND FIRE FIGHTERS. (a) The state shall provide motor
43-2 vehicle insurance for [insuring] each peace officer and fire
43-3 fighter in its employ with respect to [against liability to third
43-4 persons arising out of] the operation, maintenance, or use of a
43-5 motor vehicle owned or leased by the state.
43-6 (b) The [liability] coverage provided under this section
43-7 must satisfy the requirements imposed under Chapter 27, Insurance
43-8 Code [be in amounts not less than those required by the Texas Motor
43-9 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
43-10 Civil Statutes) to provide proof of financial responsibility].
43-11 (c) The state may elect to be self-insured or to reimburse
43-12 the actual cost of an extended motor vehicle [automobile liability]
43-13 insurance endorsement obtained by a peace officer or fire fighter
43-14 on an individually owned motor vehicle [automobile liability]
43-15 insurance policy. The extended endorsement must:
43-16 (1) be in the amount required by Subsection (b); and
43-17 (2) extend the coverage to include the operation and
43-18 use of vehicles by a peace officer or fire fighter in the scope of
43-19 the officer's or fire fighter's employment.
43-20 (d) If the reimbursement method is used, the state may
43-21 require a peace officer or fire fighter who operates and uses a
43-22 motor vehicle to present proof that an extended coverage
43-23 endorsement has been purchased and is in effect for the period of
43-24 reimbursement.
43-25 (e) In this section, "motor vehicle" means any motor vehicle
43-26 for which motor vehicle [automobile] insurance may be written under
43-27 Subchapter A, Chapter 5, Insurance Code.
44-1 SECTION 22. Section 142.006, Local Government Code, is
44-2 amended to read as follows:
44-3 Sec. 142.006. MOTOR VEHICLE [LIABILITY] INSURANCE FOR PEACE
44-4 OFFICERS AND FIRE FIGHTERS. (a) This section does not apply to a
44-5 municipality covered by Section 142.007.
44-6 (b) A municipality shall provide motor vehicle insurance for
44-7 [insuring] each peace officer and fire fighter in its employ with
44-8 respect to [against liability to third persons arising out of] the
44-9 operation, maintenance, or use of a motor vehicle owned or leased
44-10 by the municipality.
44-11 (c) The [liability] coverage provided under this section
44-12 must satisfy the requirements imposed under Chapter 27, Insurance
44-13 Code [be in amounts not less than those required by the Texas Motor
44-14 Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
44-15 Civil Statutes) to provide proof of financial responsibility].
44-16 (d) The municipality may elect to be self-insured or to
44-17 reimburse the actual cost of extended motor vehicle [automobile
44-18 liability] insurance endorsements obtained by a peace officer and
44-19 fire fighter on an individually owned motor vehicle [automobile
44-20 liability] insurance policy. The extended endorsements must:
44-21 (1) be in the amount required by Subsection (c); and
44-22 (2) extend the coverage to include the operation and
44-23 use of vehicles by a peace officer or fire fighter in the scope of
44-24 the officer's or fire fighter's employment.
44-25 (e) If the reimbursement method is used, the municipality
44-26 may require that a peace officer or fire fighter who operates and
44-27 uses a motor vehicle present proof that an extended coverage
45-1 endorsement has been purchased and is in effect for the period of
45-2 reimbursement.
45-3 (f) In this section, "motor vehicle" means any motor vehicle
45-4 for which motor vehicle [automobile] insurance may be written under
45-5 Subchapter A, Chapter 5, Insurance Code.
45-6 SECTION 23. Section 157.042, Local Government Code, is
45-7 amended to read as follows:
45-8 Sec. 157.042. MOTOR VEHICLE [AUTOMOBILE LIABILITY] INSURANCE
45-9 FOR PEACE OFFICERS IN COUNTIES OF MORE THAN 1.4 MILLION. (a) A
45-10 county with a population of more than 1.4 million shall provide
45-11 motor vehicle insurance for [insure] its sheriff, constables, and
45-12 full-time deputies of those officers with respect to [against
45-13 liability to third persons arising from] the operation or
45-14 maintenance of county-owned or county-leased motor vehicles.
45-15 (b) A county may satisfy the requirement of Subsection (a)
45-16 by requiring that the person to be covered purchase an extended
45-17 coverage endorsement to an individually owned motor vehicle
45-18 [liability] insurance policy and by reimbursing the person for its
45-19 cost. The extended coverage endorsement must be in an amount equal
45-20 to or greater than that required by Subsection (d) and must extend
45-21 coverage to include the operation of county vehicles in the scope
45-22 of the person's employment. The county may require a person
45-23 insured in this manner to provide proof of coverage.
45-24 (c) A county may elect to comply with the requirements of
45-25 this section by self-insuring [in accordance with Section 34, Texas
45-26 Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's
45-27 Texas Civil Statutes)].
46-1 (d) The [Liability] coverage required under this section
46-2 must satisfy the requirements imposed under Chapter 27, Insurance
46-3 Code [be in amounts equal to or greater than the amounts required
46-4 by the Texas Motor Vehicle Safety-Responsibility Act (Article
46-5 6701h, Vernon's Texas Civil Statutes)].
46-6 (e) In this section, "motor vehicle" means a vehicle for
46-7 which motor vehicle insurance is written under Subchapter A,
46-8 Chapter 5, Insurance Code.
46-9 SECTION 24. Section 113.097(d), Natural Resources Code, is
46-10 amended to read as follows:
46-11 (d) Each category "C," "E," "H," or "J" licensee must carry
46-12 motor vehicle insurance [bodily injury and property damage
46-13 liability] coverage on each motor vehicle, including trailers and
46-14 semitrailers, used to transport LP-gas. The commission shall
46-15 establish by rule a reasonable amount of coverage to be maintained,
46-16 except that coverage shall not be less than the amounts required
46-17 under Chapter 601, Transportation Code [as proof of financial
46-18 responsibility under the Texas Motor Vehicle Safety-Responsibility
46-19 Act, as amended (Article 6701h, Vernon's Texas Civil Statutes)].
46-20 SECTION 25. Sections 502.153(c) and (e), Transportation
46-21 Code, are amended to read as follows:
46-22 (c) In this section, evidence of financial responsibility
46-23 may be:
46-24 (1) a document listed under Section 601.053(a);
46-25 (2) a [liability] self-insurance or pool coverage
46-26 document issued by a political subdivision or governmental pool
46-27 under the authority of Chapter 791, Government Code, Chapter 119,
47-1 Local Government Code, or other applicable law in at least the
47-2 minimum amounts required by Chapter 601; or
47-3 (3) a photocopy of a document described by Subdivision
47-4 (1) or (2).
47-5 (e) At the time of registration, the county
47-6 assessor-collector shall provide to a person registering a motor
47-7 vehicle a separate document that contains a statement that the
47-8 motor vehicle being registered may not be operated in this state
47-9 unless:
47-10 (1) [liability] insurance coverage for the motor
47-11 vehicle in at least the minimum amounts required by law remains in
47-12 effect to insure against potential losses; or
47-13 (2) the motor vehicle is exempt from the insurance
47-14 requirement because the person has established financial
47-15 responsibility in a manner described by Section 601.051[(2)-(5)] or
47-16 is exempt under Section 601.052.
47-17 SECTION 26. Section 521.143(b), Transportation Code, is
47-18 amended to read as follows:
47-19 (b) Evidence of financial responsibility presented under
47-20 this section must be in at least the minimum amounts required by
47-21 Section 601.071 or 601.072, as applicable, and must cover each
47-22 motor vehicle owned by the applicant for which the applicant is
47-23 required to maintain evidence of financial responsibility. The
47-24 evidence may be shown in the manner provided by Section 601.053(a).
47-25 SECTION 27. Section 601.002, Transportation Code, is amended
47-26 to read as follows:
47-27 Sec. 601.002. Definitions. In this chapter:
48-1 (1) "Department" means the Department of Public
48-2 Safety.
48-3 (2) "Driver's license" has the meaning assigned by
48-4 Section 521.001.
48-5 (3) "Financial responsibility" means coverage [the
48-6 ability to respond in damages for liability] for an accident that:
48-7 (A) occurs after the effective date of the
48-8 document evidencing the establishment of the financial
48-9 responsibility; and
48-10 (B) arises out of the ownership, maintenance, or
48-11 use of a motor vehicle.
48-12 (4) "Highway" means the entire width between property
48-13 lines of a road, street, or way in this state that is not privately
48-14 owned or controlled and:
48-15 (A) some part of which is open to the public for
48-16 vehicular traffic; and
48-17 (B) over which the state has legislative
48-18 jurisdiction under its police power.
48-19 (5) "Motor vehicle" means a self-propelled vehicle
48-20 designed for use on a highway, a trailer or semitrailer designed
48-21 for use with a self-propelled vehicle, or a vehicle propelled by
48-22 electric power from overhead wires and not operated on rails. The
48-23 term does not include:
48-24 (A) a traction engine;
48-25 (B) a road roller or grader;
48-26 (C) a tractor crane;
48-27 (D) a power shovel;
49-1 (E) a well driller; or
49-2 (F) an implement of husbandry.
49-3 (6) "Motorcycle" has the meaning assigned by Section
49-4 541.201, except that the term does not include:
49-5 (A) a moped, as defined by Section 541.201; or
49-6 (B) an all-terrain vehicle, as defined by
49-7 Section 663.001.
49-8 (7) "Nonresident" means a person who is not a resident
49-9 of this state.
49-10 (8) [(7)] "Nonresident's operating privilege" means
49-11 the privilege conferred on a nonresident by the laws of this state
49-12 relating to the operation of a motor vehicle in this state by the
49-13 nonresident or the use in this state of a motor vehicle owned by
49-14 the nonresident.
49-15 (9) [(8)] "Operator" means the person in actual
49-16 physical control of a motor vehicle.
49-17 (10) [(9)] "Owner" means:
49-18 (A) the person who holds legal title to a motor
49-19 vehicle;
49-20 (B) the purchaser or lessee of a motor vehicle
49-21 subject to an agreement for the conditional sale or lease of the
49-22 vehicle, if the person has:
49-23 (i) the right to purchase the vehicle on
49-24 performing conditions stated in the agreement; and
49-25 (ii) an immediate right to possess the
49-26 vehicle; or
49-27 (C) a mortgagor of a motor vehicle who is
50-1 entitled to possession of the vehicle.
50-2 (11) [(10)] "Person" means an individual, firm,
50-3 partnership, association, or corporation.
50-4 (12) [(11)] "State" means:
50-5 (A) a state, territory, or possession of the
50-6 United States; or
50-7 (B) the District of Columbia.
50-8 (13) [(12)] "Vehicle registration" means:
50-9 (A) a registration certificate, registration
50-10 receipt, or number plate issued under Chapter 502; or
50-11 (B) a dealer's license plate or temporary
50-12 cardboard tag issued under Chapter 503.
50-13 SECTION 28. Section 601.003, Transportation Code, is amended
50-14 to read as follows:
50-15 Sec. 601.003. Judgment; Satisfied Judgment. (a) For
50-16 purposes of this chapter, judgment refers only to a final judgment
50-17 that is no longer appealable or has been finally affirmed on appeal
50-18 and that was rendered by a court of any state, a province of
50-19 Canada, or the United States on a cause of action:
50-20 (1) for damages for bodily injury, death, or damage to
50-21 or destruction of property arising out of the ownership,
50-22 maintenance, or use of a motor vehicle; or
50-23 (2) on an agreement of settlement for damages for
50-24 bodily injury, death, or damage to or destruction of property
50-25 arising out of the ownership, maintenance, or use of a motor
50-26 vehicle.
50-27 (b) Except as provided by Subsection (c), a judgment is
51-1 considered to be satisfied for purposes of this chapter if the
51-2 amount credited on one or more judgments for bodily injury to or
51-3 destruction of property of others equals or exceeds the amounts
51-4 required under the applicable provisions of Section 601.071.
51-5 (c) For purposes of this chapter, a judgment against the
51-6 owner or operator of a motorcycle for damages arising out of the
51-7 ownership or use of the motorcycle is considered to be satisfied as
51-8 to the appropriate part of the judgment set out by this subsection
51-9 if:
51-10 (1) the total amount credited on one or more judgments
51-11 for bodily injury to or death of one person resulting from one
51-12 accident equals or exceeds the amount required under Section
51-13 601.072(a)(1) to establish financial responsibility;
51-14 (2) the total amount credited on one or more judgments
51-15 for bodily injury to or death of two or more persons resulting from
51-16 one accident equals or exceeds the amount required under Section
51-17 601.072(a)(2) to establish financial responsibility; or
51-18 (3) the total amount credited on one or more judgments
51-19 for damage to or destruction of property of another resulting from
51-20 one accident equals or exceeds the amount required under Section
51-21 601.072(a)(3) to establish financial responsibility.
51-22 (d) [(c)] In determining whether a judgment is satisfied
51-23 under Subsection (b) or (c), a payment made in settlement of a
51-24 claim for damages for bodily injury, death, or damage to or
51-25 destruction of property is considered to be an amount credited on a
51-26 judgment.
51-27 (e) [(d)] For purposes of this section:
52-1 (1) damages for bodily injury or death include damages
52-2 for care and loss of services; and
52-3 (2) damages for damage to or destruction of property
52-4 include damages for loss of use.
52-5 SECTION 29. Section 601.051, Transportation Code, is amended
52-6 to read as follows:
52-7 Sec. 601.051. Requirement of Financial Responsibility. A
52-8 person may not operate a motor vehicle in this state unless
52-9 financial responsibility is established for that vehicle through:
52-10 (1) a motor vehicle [liability] insurance policy that
52-11 complies with Subchapter D; or
52-12 (2) [a surety bond filed under Section 601.121;]
52-13 [(3) a deposit under Section 601.122;]
52-14 [(4) a deposit under Section 601.123; or]
52-15 [(5)] self-insurance under Section 601.124.
52-16 SECTION 30. Section 601.053(a), Transportation Code, is
52-17 amended to read as follows:
52-18 (a) As a condition of operating in this state a motor
52-19 vehicle to which Section 601.051 applies, the operator of the
52-20 vehicle on request shall provide to a peace officer, as defined by
52-21 Article 2.12, Code of Criminal Procedure, or a person involved in
52-22 an accident with the operator evidence of financial responsibility
52-23 by exhibiting:
52-24 (1) a motor vehicle [liability] insurance policy
52-25 covering the vehicle that satisfies Subchapter D or a photocopy of
52-26 the policy;
52-27 (2) a standard proof of motor vehicle [liability]
53-1 insurance form prescribed by the Texas Department of Insurance
53-2 under Section 601.081 and issued by an [a liability] insurer for
53-3 the motor vehicle;
53-4 (3) an insurance binder that confirms the operator is
53-5 in compliance with this chapter; or
53-6 (4) [a surety bond certificate issued under Section
53-7 601.121;]
53-8 [(5) a certificate of a deposit with the state
53-9 treasurer covering the vehicle issued under Section 601.122;]
53-10 [(6) a copy of a certificate of a deposit with the
53-11 appropriate county judge covering the vehicle issued under Section
53-12 601.123; or]
53-13 [(7)] a certificate of self-insurance covering the
53-14 vehicle issued under Section 601.124 or a photocopy of the
53-15 certificate.
53-16 SECTION 31. Section 601.055, Transportation Code, is amended
53-17 to read as follows:
53-18 Sec. 601.055. Substitution of Evidence of Financial
53-19 Responsibility. [(a)] If a person who has filed evidence of
53-20 financial responsibility substitutes other evidence of financial
53-21 responsibility that complies with this chapter, and the department
53-22 accepts the other evidence, the department shall[:]
53-23 [(1)] consent to the cancellation of a [bond or]
53-24 certificate of insurance filed as evidence of financial
53-25 responsibility[; or]
53-26 [(2) direct the state treasurer to return money or
53-27 securities deposited with the treasurer as evidence of financial
54-1 responsibility to the person entitled to the return of the money or
54-2 securities.]
54-3 [(b) The state treasurer shall return money or securities
54-4 deposited with the treasurer in accordance with the direction of
54-5 the department under Subsection (a)(2)].
54-6 SECTION 32. Section 601.056, Transportation Code, is amended
54-7 to read as follows:
54-8 Sec. 601.056. CANCELLATION[, RETURN,] OR WAIVER OF EVIDENCE
54-9 OF FINANCIAL RESPONSIBILITY. (a) As provided by this section, the
54-10 department, on request, shall:
54-11 (1) consent to the cancellation of a [bond or]
54-12 certificate of insurance filed as evidence of financial
54-13 responsibility; or
54-14 (2) [direct the state treasurer to return money or
54-15 securities deposited with the treasurer as evidence of financial
54-16 responsibility to the person entitled to the return of the money or
54-17 securities; or]
54-18 [(3)] waive the requirement of filing evidence of
54-19 financial responsibility.
54-20 (b) Evidence of financial responsibility may be canceled[,
54-21 returned,] or waived under Subsection (a) if:
54-22 (1) the department, during the two years preceding the
54-23 request, has not received a record of a conviction or a forfeiture
54-24 of bail that would require or permit the suspension or revocation
54-25 of the driver's license, vehicle registration, or nonresident's
54-26 operating privilege of the person by or for whom the evidence was
54-27 provided;
55-1 (2) the person for whom the evidence of financial
55-2 responsibility was provided dies or has a permanent incapacity to
55-3 operate a motor vehicle; or
55-4 (3) the person for whom the evidence of financial
55-5 responsibility was provided surrenders the person's license and
55-6 vehicle registration to the department.
55-7 (c) A cancellation[, return,] or waiver under Subsection
55-8 (b)(1) may be made only after the second anniversary of the date
55-9 the evidence of financial responsibility was required.
55-10 (d) [The state treasurer shall return the money or
55-11 securities as directed by the department under Subsection (a)(2).]
55-12 [(e)] The department may not act under Subsection (a)(1) [or
55-13 (2)] if:
55-14 (1) an action for damages [on a liability] covered by
55-15 the evidence of financial responsibility is pending; or
55-16 (2) a judgment for damages [on a liability] covered by
55-17 the evidence of financial responsibility is not satisfied[; or]
55-18 [(3) the person for whom the bond has been filed or
55-19 for whom money or securities have been deposited has, within the
55-20 two years preceding the request for cancellation or return of the
55-21 evidence of financial responsibility, been involved as an operator
55-22 or owner in a motor vehicle accident resulting in bodily injury to,
55-23 or property damage to the property of, another person].
55-24 (e) [(f)] In the absence of evidence to the contrary in the
55-25 records of the department, the department shall accept as
55-26 sufficient an affidavit of the person requesting action under
55-27 Subsection (a) stating that[:]
56-1 [(1)] the facts described by Subsection (d) [(e)] do
56-2 not exist[; or]
56-3 [(2) the person has been released from the liability
56-4 or has been finally adjudicated as not liable for bodily injury or
56-5 property damage described by Subsection (e)(3)].
56-6 (f) [(g)] A person whose evidence of financial
56-7 responsibility has been canceled [or returned] under Subsection
56-8 (b)(3) may not be issued a new driver's license or vehicle
56-9 registration unless the person establishes financial responsibility
56-10 for the remainder of the two-year period beginning on the date the
56-11 evidence of financial responsibility was required.
56-12 SECTION 33. The heading to Subchapter D, Chapter 601,
56-13 Transportation Code, is amended to read as follows:
56-14 SUBCHAPTER D. ESTABLISHMENT OF FINANCIAL RESPONSIBILITY THROUGH
56-15 MOTOR VEHICLE [LIABILITY] INSURANCE
56-16 SECTION 34. Section 601.071, Transportation Code, is amended
56-17 to read as follows:
56-18 Sec. 601.071. MOTOR VEHICLE [LIABILITY] INSURANCE;
56-19 REQUIREMENTS. (a) For purposes of this chapter, a motor vehicle
56-20 [liability] insurance policy must be an owner's or operator's
56-21 policy that:
56-22 (1) except as provided by Section 601.083, is issued
56-23 by an insurance company authorized to write motor vehicle
56-24 [liability] insurance in this state;
56-25 (2) is written to or for the benefit of the person
56-26 named in the policy as the insured; and
56-27 (3) meets the requirements of this subchapter.
57-1 (b) The owner or operator of a motor vehicle, other than a
57-2 motorcycle, may satisfy the requirements of this chapter with a
57-3 motor vehicle insurance policy providing at least:
57-4 (1) personal compensation coverage under Chapter 27,
57-5 Insurance Code; and
57-6 (2) $15,000 coverage for the liability of the owner or
57-7 operator for liability for damage to or destruction of property in
57-8 one accident.
57-9 (c) Coverage required under Subsection (b)(2) may exclude,
57-10 with respect to one accident, the first $250 of liability for
57-11 damage to or destruction of property of others.
57-12 SECTION 35. Section 601.072, Transportation Code, is amended
57-13 to read as follows:
57-14 Sec. 601.072. MOTORCYCLE INSURANCE; MINIMUM COVERAGE
57-15 AMOUNTS. (a) The owner or operator of a motorcycle may [minimum
57-16 amounts of motor vehicle liability insurance coverage required to]
57-17 establish financial responsibility under this chapter through a
57-18 motor vehicle insurance policy that provides at least [are]:
57-19 (1) $20,000 coverage for the liability of the owner or
57-20 operator for liability for bodily injury to or death of one person
57-21 in one accident;
57-22 (2) $40,000 coverage for the liability of the owner or
57-23 operator for liability for bodily injury to or death of two or more
57-24 persons in one accident, subject to the amount provided by
57-25 Subdivision (1) for bodily injury to or death of one of the
57-26 persons; and
57-27 (3) $15,000 coverage for the liability of the owner or
58-1 operator for liability for damage to or destruction of property of
58-2 others in one accident.
58-3 (b) The coverage required under Subsection (a) may exclude,
58-4 with respect to one accident:
58-5 (1) the first $250 of liability for bodily injury to
58-6 or death of one person;
58-7 (2) the first $500 of liability for bodily injury to
58-8 or death of two or more persons, subject to the amount provided by
58-9 Subdivision (1) for bodily injury to or death of one of the
58-10 persons; and
58-11 (3) the first $250 of liability for property damage to
58-12 or destruction of property of others.
58-13 SECTION 36. Sections 601.073(a) and (b), Transportation
58-14 Code, are amended to read as follows:
58-15 (a) A motor vehicle [liability] insurance policy must state:
58-16 (1) the name and address of the named insured;
58-17 (2) the coverage provided under the policy;
58-18 (3) the premium charged for the policy;
58-19 (4) the policy period; and
58-20 (5) the policy limits [of liability].
58-21 (b) The policy must contain an agreement or endorsement that
58-22 the insurance coverage provided under the policy is:
58-23 (1) provided in accordance with the coverage required
58-24 by this chapter [for bodily injury, death, and property damage];
58-25 and
58-26 (2) subject to this chapter.
58-27 SECTION 37. Section 601.074, Transportation Code, is amended
59-1 to read as follows:
59-2 Sec. 601.074. OPTIONAL TERM [TERMS]. [(a)] A motor vehicle
59-3 [liability] insurance policy may provide that the insured shall
59-4 reimburse the insurance company for a payment that, in the absence
59-5 of this chapter, the insurance company would not have been
59-6 obligated to make under the terms of the policy.
59-7 [(b) A policy may allow prorating of the insurance provided
59-8 under the policy with other collectible insurance.]
59-9 SECTION 38. Section 601.075, Transportation Code, is amended
59-10 to read as follows:
59-11 Sec. 601.075. PROHIBITED TERM [TERMS]. A motor vehicle
59-12 [liability] insurance policy may not insure against liability[:]
59-13 [(1) for which the insured or the insured's insurer
59-14 may be held liable under a workers' compensation law;]
59-15 [(2) for bodily injury to or death of an employee of
59-16 the insured while engaged in the employment, other than domestic,
59-17 of the insured, or in domestic employment if benefits for the
59-18 injury are payable or required to be provided under a workers'
59-19 compensation law; or]
59-20 [(3)] for injury to or destruction of property owned
59-21 by, rented to, in the care of, or transported by the insured.
59-22 SECTION 39. Section 601.076, Transportation Code, is amended
59-23 to read as follows:
59-24 Sec. 601.076. Required Terms: Owner's Policy. An owner's
59-25 motor vehicle [liability] insurance policy must:
59-26 (1) cover each motor vehicle for which coverage is to
59-27 be granted under the policy; and
60-1 (2) provide the coverage required by Section 601.071
60-2 or [pay, on behalf of the named insured or another person who, as
60-3 insured, uses a covered motor vehicle with the express or implied
60-4 permission of the named insured, amounts the insured becomes
60-5 obligated to pay as damages arising out of the ownership,
60-6 maintenance, or use of the motor vehicle in the United States or
60-7 Canada, subject to the amounts, excluding interest and costs, and
60-8 exclusions of Section] 601.072.
60-9 SECTION 40. Section 601.077, Transportation Code, is amended
60-10 to read as follows:
60-11 Sec. 601.077. Required Terms: Operator's Policy. An
60-12 operator's motor vehicle [liability] insurance policy must provide
60-13 the coverage required by Section 601.071 or 601.072 [pay, on behalf
60-14 of the named insured, amounts the insured becomes obligated to pay
60-15 as damages arising out of the use by the insured of a motor vehicle
60-16 the insured does not own, subject to the same territorial limits,
60-17 payment limits, and exclusions as for an owner's policy under
60-18 Section 601.076].
60-19 SECTION 41. Sections 601.078(a) and (c), Transportation
60-20 Code, are amended to read as follows:
60-21 (a) An insurance policy that provides the coverage required
60-22 for a motor vehicle [liability] insurance policy may also provide
60-23 lawful coverage in excess of or in addition to the required
60-24 coverage.
60-25 (c) In the case of a policy that provides excess or
60-26 additional coverage, the term "motor vehicle [liability] insurance
60-27 policy" applies only to that part of the coverage that is required
61-1 under this subchapter.
61-2 SECTION 42. Section 601.079, Transportation Code, is amended
61-3 to read as follows:
61-4 Sec. 601.079. Multiple Policies. The requirements for a
61-5 motor vehicle [liability] insurance policy may be satisfied by a
61-6 combination of policies of one or more insurance companies if the
61-7 policies in combination meet the requirements.
61-8 SECTION 43. Section 601.080, Transportation Code, is amended
61-9 to read as follows:
61-10 Sec. 601.080. Insurance Binder. A binder issued pending the
61-11 issuance of a motor vehicle [liability] insurance policy satisfies
61-12 the requirements for such a policy.
61-13 SECTION 44. Section 601.081, Transportation Code, is amended
61-14 to read as follows:
61-15 Sec. 601.081. STANDARD PROOF OF MOTOR VEHICLE [LIABILITY]
61-16 INSURANCE FORM. A standard proof of motor vehicle [liability]
61-17 insurance form prescribed by the Texas Department of Insurance must
61-18 include:
61-19 (1) the name of the insurer;
61-20 (2) the insurance policy number;
61-21 (3) the policy period;
61-22 (4) the name and address of each insured;
61-23 (5) the policy limits or a statement that the coverage
61-24 of the policy complies with [the minimum amounts of motor vehicle
61-25 liability insurance required by] this chapter; and
61-26 (6) the make and model of each covered vehicle.
61-27 SECTION 45. Section 601.082, Transportation Code, is amended
62-1 to read as follows:
62-2 Sec. 601.082. MOTOR VEHICLE [LIABILITY] INSURANCE;
62-3 CERTIFICATION. If evidence of financial responsibility is required
62-4 to be filed with the department under this chapter, a motor vehicle
62-5 [liability] insurance policy that is to be used as evidence must be
62-6 certified under Section 601.083 or 601.084.
62-7 SECTION 46. Section 601.083, Transportation Code, is amended
62-8 to read as follows:
62-9 Sec. 601.083. CERTIFICATE OF MOTOR VEHICLE [LIABILITY]
62-10 INSURANCE. (a) A person may provide evidence of financial
62-11 responsibility by filing with the department the certificate of an
62-12 insurance company authorized to write motor vehicle [liability]
62-13 insurance in this state certifying that a motor vehicle [liability]
62-14 insurance policy for the benefit of the person required to provide
62-15 evidence of financial responsibility is in effect.
62-16 (b) The certificate must state the effective date of the
62-17 policy, which must be the same date as the effective date of the
62-18 certificate.
62-19 (c) The certificate must cover each motor vehicle owned by
62-20 the person required to provide the evidence of financial
62-21 responsibility, unless the policy is issued to a person who does
62-22 not own a motor vehicle.
62-23 (d) A motor vehicle may not be registered in the name of a
62-24 person required to provide evidence of financial responsibility
62-25 unless the vehicle is covered by a certificate.
62-26 SECTION 47. Sections 601.084(a) and (c), Transportation
62-27 Code, are amended to read as follows:
63-1 (a) Subject to Subsection (c), a nonresident owner of a
63-2 motor vehicle that is not registered in this state may provide
63-3 evidence of financial responsibility by filing with the department
63-4 the certificate of an insurance company authorized to transact
63-5 business in the state in which the vehicle is registered certifying
63-6 that a motor vehicle [liability] insurance policy for the benefit
63-7 of the person required to provide evidence of financial
63-8 responsibility is in effect.
63-9 (c) The department shall accept the certificate of an
63-10 insurer not authorized to transact business in this state if the
63-11 certificate otherwise complies with this chapter and the insurance
63-12 company:
63-13 (1) executes a power of attorney authorizing the
63-14 department to accept on its behalf service of notice or process in
63-15 an action arising out of a motor vehicle accident in this state;
63-16 and
63-17 (2) agrees in writing that its policies will be
63-18 treated as conforming to the laws of this state relating to the
63-19 terms of a motor vehicle [liability] insurance policy.
63-20 SECTION 48. Section 601.086, Transportation Code, is amended
63-21 to read as follows:
63-22 Sec. 601.086. Response of Insurance Company if Policy Not in
63-23 Effect. An insurance company that is notified by the department of
63-24 an accident in connection with which an owner or operator has
63-25 reported a motor vehicle [liability] insurance policy that complies
63-26 with Section 601.071 or 601.072 with the company shall advise the
63-27 department if a policy is not in effect as reported.
64-1 SECTION 49. Section 601.087, Transportation Code, is amended
64-2 to read as follows:
64-3 Sec. 601.087. Governmental Record; Unauthorized Certificate
64-4 or Form. A standard proof of motor vehicle [liability] insurance
64-5 form described by Section 601.081, a certificate described by
64-6 Section 601.083, or a document purporting to be such a form or
64-7 certificate that is not issued by an insurer authorized to write
64-8 motor vehicle [liability] insurance in this state is a governmental
64-9 record for purposes of Chapter 37, Penal Code.
64-10 SECTION 50. Section 601.088(a), Transportation Code, is
64-11 amended to read as follows:
64-12 (a) This chapter does not apply to or affect a policy of
64-13 motor vehicle [liability] insurance required by another law of this
64-14 state. If that policy contains an agreement or is endorsed to
64-15 conform to the requirements of this chapter, the policy may be
64-16 certified as evidence of financial responsibility under this
64-17 chapter.
64-18 SECTION 51. Sections 601.124(b) and (c), Transportation
64-19 Code, are amended to read as follows:
64-20 (b) The department may issue a certificate of self-insurance
64-21 to a person if:
64-22 (1) the person applies for the certificate; and
64-23 (2) the department is satisfied that the person has
64-24 and will continue to have the ability to provide the benefits
64-25 required by Chapter 27, Insurance Code, and pay judgments obtained
64-26 against the person to the extent of the limits established by
64-27 Sections 601.171 and 601.172.
65-1 (c) The self-insurer must supplement the certificate with an
65-2 agreement that, for accidents occurring while the certificate is in
65-3 force, the self-insurer will pay the same benefits and judgments in
65-4 the same amounts as an insurer would be obligated to pay under an
65-5 owner's motor vehicle [liability] insurance policy issued to the
65-6 self-insurer if such policy were issued.
65-7 SECTION 52. Section 601.151(b), Transportation Code, is
65-8 amended to read as follows:
65-9 (b) This subchapter does not apply to:
65-10 (1) an owner or operator who has in effect at the time
65-11 of the accident a motor vehicle [liability] insurance policy that
65-12 covers the motor vehicle involved in the accident;
65-13 (2) an operator who is not the owner of the motor
65-14 vehicle, if a motor vehicle [liability] insurance policy [or bond]
65-15 for the operation of a motor vehicle the person does not own is in
65-16 effect at the time of the accident;
65-17 (3) an owner or operator whose liability for damages
65-18 resulting from the accident, in the judgment of the department, is
65-19 covered by another form of [liability] insurance policy [or bond];
65-20 (4) an owner or operator, if there was not bodily
65-21 injury to or damage of the property of a person other than the
65-22 owner or operator;
65-23 (5) the owner or operator of a motor vehicle that at
65-24 the time of the accident was legally parked or legally stopped at a
65-25 traffic signal;
65-26 (6) the owner of a motor vehicle that at the time of
65-27 the accident was being operated without the owner's express or
66-1 implied permission or was parked by a person who had been operating
66-2 the vehicle without that permission; or
66-3 (7) a person qualifying as a self-insurer under
66-4 Section 601.124 or a person operating a motor vehicle for a
66-5 self-insurer.
66-6 SECTION 53. Sections 601.168(a) and (b), Transportation
66-7 Code, are amended to read as follows:
66-8 (a) A bond or motor vehicle [liability] insurance policy
66-9 under this subchapter must:
66-10 (1) be issued by a surety company or insurance
66-11 company:
66-12 (A) authorized to write motor vehicle
66-13 [liability] insurance in this state; or
66-14 (B) that complies with Subsection (b); and
66-15 (2) cover the amounts, excluding interest and costs,
66-16 required to establish financial responsibility under Section
66-17 601.071 or 601.072.
66-18 (b) A bond or motor vehicle [liability] insurance policy
66-19 issued by a surety company or insurance company that is not
66-20 authorized to do business in this state is effective under this
66-21 subchapter only if:
66-22 (1) the bond or policy is issued for a motor vehicle
66-23 that:
66-24 (A) is not registered in this state; or
66-25 (B) was not registered in this state on the
66-26 effective date of the most recent renewal of the policy; and
66-27 (2) the surety company or insurance company executes a
67-1 power of attorney authorizing the department to accept on the
67-2 company's behalf service of notice or process in an action arising
67-3 out of the accident on the bond or policy.
67-4 SECTION 54. The heading to Subchapter G, Chapter 601,
67-5 Transportation Code, is amended to read as follows:
67-6 SUBCHAPTER G. FAILURE TO MAINTAIN MOTOR VEHICLE [LIABILITY]
67-7 INSURANCE OR OTHERWISE ESTABLISH FINANCIAL
67-8 RESPONSIBILITY; CRIMINAL PENALTIES
67-9 SECTION 55. The heading to Section 601.191, Transportation
67-10 Code, is amended to read as follows:
67-11 Sec. 601.191. OPERATION OF MOTOR VEHICLE IN VIOLATION OF
67-12 MOTOR VEHICLE [LIABILITY] INSURANCE REQUIREMENT; OFFENSE
67-13 SECTION 56. Section 601.193(a), Transportation Code, is
67-14 amended to read as follows:
67-15 (a) It is a defense to prosecution under this subchapter
67-16 [chapter] that the person charged produces in court a motor vehicle
67-17 [liability] insurance policy that complies with Section 601.071 or
67-18 601.072, or a certificate of self-insurance previously issued to
67-19 that person, that was valid at the time that the offense is alleged
67-20 to have occurred.
67-21 SECTION 57. Section 601.233(a), Transportation Code, is
67-22 amended to read as follows:
67-23 (a) A citation for an offense under Section 601.191 issued
67-24 as a result of Section 601.053 must include, in type larger than
67-25 other type on the citation, the following statement:
67-26 "A second or subsequent conviction of an offense under
67-27 the Texas Motor Vehicle Safety Responsibility Act will
68-1 result in the suspension of your driver's license and
68-2 motor vehicle registration unless you file and maintain
68-3 evidence of financial responsibility with the
68-4 Department of Public Safety for two years from the date
68-5 of conviction. The department may waive the
68-6 requirement to file evidence of financial
68-7 responsibility if you file satisfactory evidence with
68-8 the department showing that at the time this citation
68-9 was issued, the vehicle was covered by a motor vehicle
68-10 [liability] insurance policy or that you were otherwise
68-11 exempt from the requirements to provide evidence of
68-12 financial responsibility."
68-13 SECTION 58. Section 601.333, Transportation Code, is amended
68-14 to read as follows:
68-15 Sec. 601.333. RELIEF FROM SUSPENSION: MOTOR VEHICLE
68-16 [LIABILITY] INSURANCE. (a) A person whose driver's license,
68-17 vehicle registrations, or nonresident's operating privilege has
68-18 been suspended or is subject to suspension under Section 601.332
68-19 may file with the department:
68-20 (1) evidence that there was a motor vehicle
68-21 [liability] insurance policy covering the motor vehicle involved in
68-22 the accident out of which the judgment arose in effect at the time
68-23 of the accident;
68-24 (2) an affidavit stating that the person was insured
68-25 at the time of the accident, that the insurance company is liable
68-26 to pay the judgment, and the reason, if known, that the insurance
68-27 company has not paid the judgment;
69-1 (3) the original policy of insurance or a certified
69-2 copy of the policy, if available; and
69-3 (4) any other documents required by the department to
69-4 show that the loss, injury, or damage for which the judgment was
69-5 rendered was covered by the insurance.
69-6 (b) The department may not suspend the driver's license,
69-7 vehicle registrations, or nonresident's operating privilege, and
69-8 shall reinstate a license, registration, or privilege that has been
69-9 suspended, if it is satisfied from the documents filed under
69-10 Subsection (a) that:
69-11 (1) there was a motor vehicle [liability] insurance
69-12 policy in effect for the vehicle at the time of the accident;
69-13 (2) the insurance company that issued the policy was
69-14 authorized to issue the policy in this state at the time the policy
69-15 was issued; and
69-16 (3) the insurance company is liable to pay the
69-17 judgment to the extent and for the amounts required by Sections
69-18 601.171 and 601.172 [this chapter].
69-19 SECTION 59. Section 601.372(a), Transportation Code, is
69-20 amended to read as follows:
69-21 (a) The department shall give written notice of a suspension
69-22 of a driver's license and vehicle registration to a person who is
69-23 required to maintain a motor vehicle [liability] insurance policy
69-24 or bond under this chapter and whose policy or bond is canceled or
69-25 terminated or who does not provide other evidence of financial
69-26 responsibility on the request of the department.
69-27 SECTION 60. The following laws are repealed:
70-1 (1) Articles 5.06-1 and 5.06-3, Insurance Code; and
70-2 (2) Sections 601.121, 601.122, and 601.123,
70-3 Transportation Code.
70-4 SECTION 61. (a) A bond filed with the Department of Public
70-5 Safety under Section 601.121, Transportation Code, as that section
70-6 existed before repeal by this Act, shall be canceled not later than
70-7 the 30th day after the date on which the person who filed the bond
70-8 with the department establishes financial responsibility under
70-9 Section 601.051, Transportation Code, as amended by this Act.
70-10 Cancellation of a bond under this subsection does not prevent
70-11 recovery for a right or cause of action that arose before the
70-12 effective date of this Act.
70-13 (b) The comptroller shall return to a person who filed cash
70-14 or securities with the state treasurer under Section 601.122,
70-15 Transportation Code, as that section existed before repeal by this
70-16 Act, the unencumbered balance of that cash or those securities not
70-17 later than the 30th day after the date on which the person who
70-18 filed the cash or securities establishes financial responsibility
70-19 under Section 601.051, Transportation Code, as amended by this Act.
70-20 (c) A county judge shall return to a person who deposited
70-21 cash or a cashier's check with the county judge under Section
70-22 601.123, Transportation Code, as that section existed before repeal
70-23 by this Act, the unencumbered balance of that cash or cashier's
70-24 check not later than the 30th day after the date on which the
70-25 person who filed the cash or cashier's check establishes financial
70-26 responsibility under Section 601.051, Transportation Code, as
70-27 amended by this Act.
71-1 SECTION 62. The Texas Department of Insurance shall adjust
71-2 the premium rate applicable to motor vehicle insurance policies
71-3 under Chapter 5, Insurance Code, that is in effect for policies
71-4 that are affected by this Act and that are delivered, issued for
71-5 delivery, or renewed during 1998 to reflect the loss and expense
71-6 savings that are predicted to result from the implementation of
71-7 this Act. The department shall determine predicted loss and
71-8 expense savings on a prospective and actuarially sound basis.
71-9 SECTION 63. If Subchapter I, Chapter 27, Insurance Code, as
71-10 added by this Act, or Article 27.132, Insurance Code, as added by
71-11 this Act, is finally determined to be invalid by a court of
71-12 competent jurisdiction, motor vehicle insurers may assess a premium
71-13 surcharge, in an amount approved by the Texas Department of
71-14 Insurance, to recover losses resulting from that determination.
71-15 SECTION 64. (a) Except as provided by Subsection (b) of
71-16 this section, this Act takes effect September 1, 1997.
71-17 (b) Sections 25-61 of this Act take effect January 1, 1998.
71-18 SECTION 65. This Act applies only to a motor vehicle
71-19 insurance policy that is delivered, issued for delivery, or renewed
71-20 on or after January 1, 1998. A policy that is delivered, issued
71-21 for delivery, or renewed before January 1, 1998, is governed by the
71-22 law as it existed immediately before the effective date of this
71-23 Act, and that law is continued in effect for that purpose.
71-24 SECTION 66. Subchapter I, Chapter 27, Insurance Code, as
71-25 added by this Act, and Article 27.132, Insurance Code, as added by
71-26 this Act, apply only to an action to recover damages for accidental
71-27 injury that accrues on or after January 1, 1998. An action that
72-1 accrues before January 1, 1998, is governed by the law as it
72-2 existed immediately before the effective date of this Act, and that
72-3 law is continued in effect for that purpose.
72-4 SECTION 67. The importance of this legislation and the
72-5 crowded condition of the calendars in both houses create an
72-6 emergency and an imperative public necessity that the
72-7 constitutional rule requiring bills to be read on three several
72-8 days in each house be suspended, and this rule is hereby suspended.