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.