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


Office of House Bill AnalysisH.B. 203
By: Burnam
Insurance
2/18/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, an insurance company may cancel a personal automobile policy if
it has been in effect for less than 60 days and a homeowner's policy if it
has been in effect for less than 90 days.  H.B. 203 reduces to 30 days the
period of time in which an insurance company may cancel a personal
automobile, or homeowner's or farm or ranch owner's policy.  This bill also
prohibits an insurance company from canceling a personal automobile policy
or a homeowner's or farm or ranch owner's policy because a claim is brought
under the policy or an accident occurs during the first 30 days of the
policy.  However, the insurance company may cancel a personal automobile
policy during the first 30 days if 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 an automobile policy, a
homeowner's policy, or a farm or ranch owner's policy if it has been in
effect for 30 days or less, rather than sixty days for a personal
automobile insurance policy.  Provides an exception. 

(j) Prohibits an insurer from canceling a personal automobile policy, a
homeowner's policy, or a farm or ranch owner's policy during the first 30
days because a claim was brought, or an accident occurred, on or after the
first day the policy was in effect, unless the policy is a personal
automobile policy and 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.