By Jones of Dallas H.B. No. 805
76R2436 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a mandatory limitation on premium increases for motor
1-3 vehicle insurance for certain policyholders and other covered
1-4 persons who are 65 years of age or older.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is
1-7 amended by adding Article 5.03-6 to read as follows:
1-8 Art. 5.03-6. LIMITATION ON PREMIUM INCREASES FOR CERTAIN
1-9 COVERED INDIVIDUALS 65 YEARS OF AGE OR OLDER
1-10 Sec. 1. DEFINITIONS. In this article:
1-11 (1) "Applicant" means an individual who applies under
1-12 this article for a limitation on increases in motor vehicle
1-13 insurance premiums.
1-14 (2) "Driving record" means an individual's history of
1-15 convictions of violations of traffic safety regulations.
1-16 (3) "Insurer" means an insurance company,
1-17 interinsurance exchange, mutual, capital stock company, fraternal
1-18 benefit society, local mutual aid association, county mutual,
1-19 reciprocal, association, Lloyd's plan, or other entity writing
1-20 motor vehicle insurance in this state. The term includes an
1-21 affiliate, as defined by Section 2, Article 21.49-1, of this code.
1-22 (4) "Motor vehicle" means any private passenger
1-23 vehicle that:
1-24 (A) is registered in this state; and
2-1 (B) has a gross weight of 25,000 pounds or less.
2-2 (5) "Traffic safety regulation" means a law or
2-3 ordinance of a state or a political subdivision of a state relating
2-4 to the operation of motor vehicles other than a regulation relating
2-5 to pedestrians or to the parking of motor vehicles.
2-6 Sec. 2. LIMITATION ON PREMIUM INCREASES; CONDITIONS FOR
2-7 ELIGIBILITY. (a) An insurer who delivers or issues for delivery in
2-8 this state a motor vehicle insurance policy, on receipt of written
2-9 verification from the insured that the insured or a family member
2-10 covered by the policy is eligible under Subsection (b) of this
2-11 section, may not increase the amount charged by the insurer for
2-12 premiums for liability, medical payments, personal injury
2-13 protection, and collision coverage to an amount that exceeds the
2-14 amount charged for that coverage on the date that the insurer
2-15 received the written verification. The limitation on premium
2-16 increases applies only to the motor vehicle designated to be driven
2-17 by the eligible person.
2-18 (b) To be eligible for the limitation on premium increases
2-19 required under Subsection (a) of this section, an applicant must:
2-20 (1) be licensed to drive in this state;
2-21 (2) be 65 years of age or older; and
2-22 (3) during the three years preceding the date the
2-23 application is filed:
2-24 (A) have held a driver's license;
2-25 (B) have not been convicted of a violation of a
2-26 traffic safety regulation that involves a moving vehicle; and
2-27 (C) have not been found at fault in a motor
3-1 vehicle accident.
3-2 (c) An applicant is not eligible for the limitation on motor
3-3 vehicle insurance premium increases under this article if the
3-4 applicant has been convicted of an offense relating to the
3-5 operation of a motor vehicle under:
3-6 (1) Chapter 49, Penal Code;
3-7 (2) Article 6701l-1, Revised Statutes, as that statute
3-8 existed before repeal by Chapter 900, Acts of the 73rd Legislature,
3-9 Regular Session, 1993, or Section 19.05, Penal Code, as that
3-10 statute existed before amendment by Chapter 900, Acts of the 73rd
3-11 Legislature, Regular Session, 1993; or
3-12 (3) another state's statute similar to a statute
3-13 described by Subdivision (1) or (2) of this subsection.
3-14 (d) For purposes of Subsections (b) and (c) of this section,
3-15 an applicant is considered to have been convicted in a case if:
3-16 (1) a sentence is imposed; or
3-17 (2) the applicant receives community supervision or
3-18 analogous treatment under the law of another state.
3-19 (e) The commissioner by rule may establish additional
3-20 requirements for limitations on premium increases under this
3-21 article and may adopt other rules as necessary for the
3-22 implementation of this article.
3-23 Sec. 3. INELIGIBILITY; REVOCATION OF PREMIUM LIMITATION;
3-24 EXCEPTION. (a) An individual is not eligible for a limitation on
3-25 increases in motor vehicle insurance premiums under this article
3-26 after the first date on which the individual fails to satisfy the
3-27 requirements of Section 2 of this article unless the individual
4-1 reestablishes eligibility under this article.
4-2 (b) The limitation on increases in motor vehicle insurance
4-3 premiums required under this article does not apply to a person who
4-4 knowingly provides false information in or with the application for
4-5 the limitation.
4-6 (c) The limitation in increases in motor vehicle insurance
4-7 premiums required under this article does not affect the ability of
4-8 an insurer to increase the amount of premiums charged an eligible
4-9 person for a motor vehicle if the value of the motor vehicle
4-10 designated to be driven by the eligible person increases. A
4-11 premium increase made under this subsection must reflect only the
4-12 increased risk resulting from the increase in the value in the
4-13 motor vehicle.
4-14 SECTION 2. Article 5.03-6, Insurance Code, as added by this
4-15 Act, applies only to an insurance policy delivered, issued for
4-16 delivery, or renewed on or after January 1, 2000. A policy
4-17 delivered, issued for delivery, or renewed before January 1, 2000,
4-18 is governed by the law as it existed immediately before the
4-19 effective date of this Act, and that law is continued in effect for
4-20 that purpose.
4-21 SECTION 3. This Act takes effect September 1, 1999.
4-22 SECTION 4. The importance of this legislation and the
4-23 crowded condition of the calendars in both houses create an
4-24 emergency and an imperative public necessity that the
4-25 constitutional rule requiring bills to be read on three several
4-26 days in each house be suspended, and this rule is hereby suspended.