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.