By Keffer H.B. No. 785
76R3284 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to compliance with the motor vehicle safety responsibility
1-3 law through motor vehicle insurance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 601.053(a), Transportation Code, is
1-6 amended to read as follows:
1-7 (a) As a condition of operating in this state a motor
1-8 vehicle to which Section 601.051 applies, the operator of the
1-9 vehicle on request shall provide to a peace officer, as defined by
1-10 Article 2.12, Code of Criminal Procedure, or a person involved in
1-11 an accident with the operator evidence of financial responsibility
1-12 by exhibiting:
1-13 (1) [a motor vehicle liability insurance policy
1-14 covering the vehicle that satisfies Subchapter D or a photocopy of
1-15 the policy;]
1-16 [(2)] a standard proof of motor vehicle liability
1-17 insurance form prescribed by the Texas Department of Insurance
1-18 under Section 601.081 and issued by a liability insurer for the
1-19 motor vehicle;
1-20 (2) [(3) an insurance binder that confirms the
1-21 operator is in compliance with this chapter;]
1-22 [(4)] a surety bond certificate issued under Section
1-23 601.121;
1-24 (3) [(5)] a certificate of a deposit with the
2-1 comptroller covering the vehicle issued under Section 601.122;
2-2 (4) [(6)] a copy of a certificate of a deposit with
2-3 the appropriate county judge covering the vehicle issued under
2-4 Section 601.123; or
2-5 (5) [(7)] a certificate of self-insurance covering the
2-6 vehicle issued under Section 601.124 or a photocopy of the
2-7 certificate.
2-8 SECTION 2. Section 601.081, Transportation Code, is amended
2-9 to read as follows:
2-10 Sec. 601.081. STANDARD PROOF OF MOTOR VEHICLE LIABILITY
2-11 INSURANCE FORM. A standard proof of motor vehicle liability
2-12 insurance form prescribed by the Texas Department of Insurance must
2-13 evidence the existence of a motor vehicle liability insurance
2-14 policy or a binder issued pending the issuance of a motor vehicle
2-15 liability insurance policy and must include:
2-16 (1) the name of the insurer;
2-17 (2) the insurance policy number or a statement that
2-18 the proof evidences the existence of an insurance binder;
2-19 (3) the policy period and the date on which the
2-20 coverage under the policy or binder expires;
2-21 (4) the name and address of each insured;
2-22 (5) the policy limits or a statement that the coverage
2-23 of the policy complies with the minimum amounts of motor vehicle
2-24 liability insurance required by this chapter; and
2-25 (6) the make and model of each covered vehicle.
2-26 SECTION 3. Article 21.49-2B, Insurance Code, is amended by
2-27 amending Section 2 and adding Section 4B to read as follows:
3-1 Sec. 2. APPLICATION. (a) Except as provided by Subsection
3-2 (b) of this section, this [This] article applies only to:
3-3 (1) a personal automobile insurance policy, other than
3-4 a policy written through the Texas Automobile Insurance Plan;
3-5 (2) a homeowners or farm or ranch owner's policy;
3-6 (3) a standard fire policy insuring a one-family
3-7 dwelling, a duplex, or the contents of a one-family dwelling, a
3-8 duplex, or an apartment; and
3-9 (4) a policy providing property and casualty coverage
3-10 to a governmental unit, other than a fidelity, surety, or guaranty
3-11 bond.
3-12 (b) Section 4B of this article applies to any motor vehicle
3-13 liability insurance policy issued to comply with the requirements
3-14 of Chapter 601, Transportation Code.
3-15 Sec. 4B. CANCELLATION OF CERTAIN MOTOR VEHICLE INSURANCE
3-16 POLICIES. (a) A motor vehicle insurer that issues a standard
3-17 proof of motor vehicle liability insurance to comply with the
3-18 requirements of Chapter 601, Transportation Code, may not cancel
3-19 the policy for which the standard proof is issued for any reason,
3-20 including a reason specified under Section 4 of this article and
3-21 including an insured's request for cancellation, before the
3-22 expiration date stated on the standard proof.
3-23 (b) Notwithstanding Subsection (a) of this section, a motor
3-24 vehicle insurer may cancel a motor vehicle liability insurance
3-25 policy if each motor vehicle covered under the policy is no longer
3-26 owned by or in the possession of the insured or is no longer
3-27 operable as a motor vehicle. The commissioner by rule shall
4-1 prescribe the appropriate form of proof to be submitted to an
4-2 insurer before a policy may be canceled under this subsection.
4-3 (c) An insurer may require advance payment of all premiums
4-4 owed on a motor vehicle liability insurance policy for the period
4-5 that a policy is not subject to cancellation under this section.
4-6 (d) An insurer may assess a surcharge in an amount
4-7 prescribed by the commissioner for each standard proof of motor
4-8 vehicle liability insurance issued during a policy period.
4-9 (e) The commissioner may adopt rules as necessary to
4-10 implement this section.
4-11 SECTION 4. This Act takes effect September 1, 1999.
4-12 SECTION 5. (a) The change in law made by Sections 1 and 2
4-13 of this Act applies only to evidence of financial responsibility
4-14 under Chapter 601, Transportation Code, that is used to comply with
4-15 the requirements of that chapter on or after January 1, 2000.
4-16 Evidence of financial responsibility used before January 1, 2000,
4-17 is governed by the law in effect immediately before the effective
4-18 date of this Act, and that law is continued in effect for that
4-19 purpose.
4-20 (b) The change in law made by Section 3 of this Act applies
4-21 only to a motor vehicle liability insurance policy that is
4-22 delivered, issued for delivery, or renewed on or after January 1,
4-23 2000. A policy that is delivered, issued for delivery, or renewed
4-24 before January 1, 2000, is governed by the law as it existed
4-25 immediately before the effective date of this Act, and that law is
4-26 continued in effect for that purpose.
4-27 SECTION 6. The importance of this legislation and the
5-1 crowded condition of the calendars in both houses create an
5-2 emergency and an imperative public necessity that the
5-3 constitutional rule requiring bills to be read on three several
5-4 days in each house be suspended, and this rule is hereby suspended.