76R10869 DB-D
By Burnam H.B. No. 203
Substitute the following for H.B. No. 203:
By Eiland C.S.H.B. No. 203
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to cancellation of certain insurance policies.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 4, Article 21.49-2B, Insurance Code, is
1-5 amended by amending Subsection (i) and adding Subsection (j) to
1-6 read as follows:
1-7 (i) Except as provided by Subsection (j) of this section, an
1-8 [An] insurer may cancel a personal automobile insurance policy if
1-9 the policy [it] has been in effect less than 60 days. An insurer
1-10 may cancel any other policy if it has been in effect less than 90
1-11 days.
1-12 (j) An insurer may not cancel a policy under Subsection (i)
1-13 of this section based on:
1-14 (1) a claim brought under the policy that arose on or
1-15 after the first day that the policy was in effect; or
1-16 (2) an accident or other incident that occurred on or
1-17 after the first day that the policy was in effect, regardless of
1-18 whether the policyholder files a claim under the policy, unless the
1-19 operator of the motor vehicle involved in the accident or incident
1-20 is insured under the policy and is charged under Section 49.03,
1-21 49.04, 49.07, or 49.08, Penal Code, in connection with the accident
1-22 or incident.
1-23 SECTION 2. Article 21.49-2B, Insurance Code, as amended by
1-24 this Act, applies only to an insurance policy that is delivered,
2-1 issued for delivery, or renewed on or after January 1, 2000. A
2-2 policy that is delivered, issued for delivery, or renewed before
2-3 January 1, 2000, is governed by the law as it existed immediately
2-4 before the effective date of this Act, and that law is continued in
2-5 effect for that purpose.
2-6 SECTION 3. The importance of this legislation and the
2-7 crowded condition of the calendars in both houses create an
2-8 emergency and an imperative public necessity that the
2-9 constitutional rule requiring bills to be read on three several
2-10 days in each house be suspended, and this rule is hereby suspended.