SRC-PNG S.B. 291 76(R) BILL ANALYSIS
Senate Research Center S.B. 291
76R592 DLF-DBy: Nixon
Technology & Business Growth
4/20/1999
As Filed
DIGEST
Currently, under Texas law, all drivers of motor vehicles are required to
have a certain level of auto insurance. However, many drivers still are
not complying with this law. This bill would prohibit uninsured motorists
from collecting damages arising from a motor vehicle accident, with certain
exceptions, and would provide for new regulations to increase the
enforcement of motor vehicle insurance requirements.
PURPOSE
As proposed, S.B. 291 prohibits uninsured motorists from collecting damages
arising from a motor vehicle accident, with certain exceptions, and
provides for new regulations to increase the enforcement of motor vehicle
insurance requirements.
RULEMAKING AUTHORITY
Rulemaking authority is granted to the commissioner of insurance in SECTION
2.03 (Article 5.06-7, Chapter 5A, Insurance Code), and to the Department of
Transportation in SECTION 3.02 (Section 502.356, Chapter 502G,
Transportation Code) of this bill.
SECTION BY SECTION ANALYSIS
ARTICLE 1. LIABILITY IN MOTOR VEHICLE ACCIDENTS
SECTION 1.01. Amends Title 4, Civil Practice and Remedies Code, by adding
Chapter 92, as follows:
CHAPTER 92. LIABILITY FOR CERTAIN MOTOR VEHICLE ACCIDENTS
Sec. 92.001. LIABILITY FOR INJURY TO CERTAIN OPERATORS. Prohibits a
person from obtaining damages for bodily injury, death, or damage to or
destruction of property arising out of a motor vehicle accident if, at the
time of the accident, the person was knowingly operating the motor vehicle
in violation of Section 601.051, Transportation Code.
Sec. 92.002. DERIVATIVE CLAIMS. Establishes that Section 92.001 applies
to a claim for damages made by a person whose right to recovery derives
from an injury to another person whose right to recover damages would be
barred under Section 92.001, except as provided by Subsection (b).
Provides that this chapter does not prohibit the recovery of exemplary
damages for a wilful act or omission or gross neglect in a wrongful death
action brought by or on behalf of a surviving spouse or heirs of the
decedent's body under a statute enacted under Section 26, Article XVI,
Texas Constitution. Provides that a claim for exemplary damages described
by this subsection is governed by Chapter 41.
Sec. 92.003. CLAIMS AGAINST INTOXICATED OPERATORS. Provides that Section
92.001 does not apply if the person described by that section was injured
by another person who was operating a motor vehicle while intoxicated in
violation of Section 49.04, Penal Code, or other law relating to driving
while intoxicated and was convicted of such an offense.
SECTION 1.02. Effective date of this article: January 1, 2000.
Makes application of this article prospective.
ARTICLE 2. INSURANCE; FORM OF PROOF OF INSURANCE
SECTION 2.01. Amends Section 601.053(a), Transportation Code, to delete
text requiring a motor vehicle operator to provide a motor vehicle
liability insurance policy to a police officer or a person involved in an
accident, or an insurance binder confirming the operator is in compliance
with this chapter. Makes conforming changes.
SECTION 2.02. Amends Section 601.081, Transportation Code, to require the
standard proof of motor vehicle liability form to evidence the existence of
a motor vehicle liability insurance policy or a binder and to include
certain information.
SECTION 2.03. Amends Chapter 5A, Insurance Code, by adding Article 5.06-7,
as follows:
Art. 5.06-7. POLICIES NOT SUBJECT TO CANCELLATION. Authorizes a motor
vehicle insurer to offer a liability insurance policy valid for a certain
period that is not subject to cancellation by the insurer or at the request
of the insured. Provides that a policy issued under this section is not
subject to cancellation for any reason, except as provided by this article.
Authorizes a motor vehicle insurer to cancel a liability insurance policy
issued under this article if each motor vehicle covered by the policy is no
longer owned by or in the possession of the insured or no longer operable.
Grants rulemaking authority to the commissioner of insurance (commissioner)
to prescribe the appropriate form of proof to be submitted to an insurer
before a policy may be canceled under this subsection. Authorizes an
insurer to require advance payment of all premiums owed for a liability
insurance policy issued under this article. Authorizes an insurer to
assess a premium surcharge in an amount prescribed by the commissioner for
issuance of a liability insurance policy under this article. Grants
rulemaking authority to the commissioner as necessary to implement this
article.
SECTION 2.04. Effective date of this article: January 1, 2000.
Makes application of this article prospective.
ARTICLE 3. MONTHLY REGISTRATION FOR CERTAIN OPERATORS
SECTION 3.01. Amends Sections 502.153(b), (d), and (f), Transportation
Code, to prohibit the county assessor-collector from registering a vehicle
unless the standard proof of motor vehicle liability insurance form
contains certain statements. Deletes text requiring a personal automobile
policy used as evidence of financial responsibility to comply with Article
5.06, Insurance Code. Makes nonsubstantive and conforming changes.
SECTION 3.02. Amends Chapter 502G, Transportation Code, by adding Section
502.356, as follows:
Sec. 502.356. TEMPORARY REGISTRATION PERMIT FOR CERTAIN VEHICLES; OFFENSE.
Authorizes the Texas Department of Transportation (department) to issue a
temporary registration permit for certain vehicles. Provides that a
temporary registration permit is in lieu of registration and valid for 30
days. Authorizes a temporary registration to be issued only for certain
motor vehicles showing evidence of financial responsibility as required by
Section 601.051. Authorizes a person to obtain multiple temporary
registration permits for a vehicle. Sets forth the procedure by which a
person may obtain a temporary registration permit. Requires the department
to set the required fee at a certain amount. Requires a registration
receipt to be issued on forms provided by the department. Requires the
department to issue a license plate for the vehicle covered by the permit
the first time the permit is issued, subject to Section 502.180(b).
Requires the issuance of a temporary registration permit insignia
evidencing the issuance of the permit. Requires the department to design
the insignia. Grants rulemaking authority to the department regarding the
display of the insignia. Requires a person issued a temporary registration
permit to display the insignia as required. Provides that a person issued
a temporary registration permit who operates a vehicle in violation of
Subsection (g) commits a Class C misdemeanor. Grants rulemaking authority
to the department to administer this section and prescribe certain forms.
SECTION 3.03. Effective date of this article: January 1, 2000.
Makes application of this article prospective.
ARTICLE 4. EMERGENCY
SECTION 4.01. Emergency clause.