HBA-RBT C.S.H.B. 203 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 203
By: Burnam
Insurance
4/1/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, an insurance company may cancel a personal automobile policy if
it has been in effect for less than 60 days.  C.S.H.B. 203 prohibits an
insurance company from canceling a personal automobile policy because a
claim is brought under the policy or an accident occurs on or after the
first day the policy is in effect, unless the insured is charged with
specified alcohol-related offenses in connection with an accident. 
 
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 4, Article 21.49-2B, Insurance Code, by amending
Subsection (i), and adding Subsection (j), as follows: 

(i) Authorizes an insurance company to cancel a personal automobile policy
if it has been in effect less than sixty days.  Provides an exception. 

(j) Prohibits an insurer from canceling a personal automobile policy
because a claim is brought or an accident occurs on or after the first day
the policy was in effect, regardless of whether the policyholder files a
claim under the policy, unless the insured driver is charged under Section
49.03 (Consumption or Possession of Alcoholic Beverage in Motor Vehicle),
49.04 (Driving While Intoxicated), 49.07 (Intoxication Assault), or 49.08
(Intoxication Manslaughter), Penal Code, in connection with the accident. 

SECTION 2.  Makes application of this Act prospective beginning January 1,
2000. 

SECTION 3.  Emergency clause.
            Effective date:  90 days after adjournment.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 203 modifies the original bill by removing all references to
homeowner's, farm owner's, and ranch owner's insurance policies, and to
make conforming changes.  The substitute modifies the original by
reinstating the 60-day limit, instead of the proposed 30-day limit, for
insurance companies to cancel personal automobile policies.