By Chavez H.B. No. 1908
76R4460 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, the date on which the standard
2-20 proof was issued, and the date on which the coverage under the
2-21 policy or binder expires;
2-22 (4) the name and address of each insured;
2-23 (5) the policy limits or a statement that the coverage
2-24 of the policy complies with the minimum amounts of motor vehicle
2-25 liability insurance required by this chapter; and
2-26 (6) the make and model of each covered vehicle.
2-27 SECTION 3. Articles 5.06(9) and (10), Insurance Code, are
3-1 amended to read as follows:
3-2 (9) An insurance policy or other document evidencing
3-3 proof of purchase of a personal automobile insurance policy written
3-4 for a term of less than 120 [30] days may not be used to obtain an
3-5 original or renewal driver's license, an automobile registration or
3-6 license plates, or a motor vehicle inspection certificate and must
3-7 contain a statement as follows:
3-8 "TEXAS LAW PROHIBITS USE OF THIS DOCUMENT TO OBTAIN A MOTOR
3-9 VEHICLE INSPECTION CERTIFICATE, AN ORIGINAL OR RENEWAL DRIVER'S
3-10 LICENSE, OR AN AUTOMOBILE REGISTRATION OR LICENSE PLATES."
3-11 (10) Before accepting any premium or fee for a
3-12 personal automobile insurance policy or binder for a term of less
3-13 than 120 [30] days, an agent or insurer must make the following
3-14 written disclosure to the applicant or insured:
3-15 "TEXAS LAW PROHIBITS USE OF THIS POLICY OR BINDER TO OBTAIN A
3-16 MOTOR VEHICLE INSPECTION CERTIFICATE, AN ORIGINAL OR RENEWAL
3-17 DRIVER'S LICENSE, OR AN AUTOMOBILE REGISTRATION OR LICENSE PLATES."
3-18 SECTION 4. Article 21.49-2B, Insurance Code, is amended by
3-19 amending Section 2 and adding Section 4B to read as follows:
3-20 Sec. 2. APPLICATION. (a) Except as provided by Subsection
3-21 (b) of this section, this [This] article applies only to:
3-22 (1) a personal automobile insurance policy, other than
3-23 a policy written through the Texas Automobile Insurance Plan;
3-24 (2) a homeowners or farm or ranch owner's policy;
3-25 (3) a standard fire policy insuring a one-family
3-26 dwelling, a duplex, or the contents of a one-family dwelling, a
3-27 duplex, or an apartment; and
4-1 (4) a policy providing property and casualty coverage
4-2 to a governmental unit, other than a fidelity, surety, or guaranty
4-3 bond.
4-4 (b) Section 4B of this article applies to any motor vehicle
4-5 liability insurance policy issued to comply with the requirements
4-6 of Chapter 601, Transportation Code.
4-7 Sec. 4B. CANCELLATION OF CERTAIN MOTOR VEHICLE INSURANCE
4-8 POLICIES. (a) A motor vehicle insurer that issues a standard
4-9 proof of motor vehicle liability insurance to comply with the
4-10 requirements of Chapter 601, Transportation Code, may not cancel
4-11 the policy for which the standard proof is issued for any reason,
4-12 including a reason specified under Section 4 of this article and
4-13 including an insured's request for cancellation, before the 120th
4-14 day after the date stated on which the standard proof was issued.
4-15 (b) Notwithstanding Subsection (a) of this section, a motor
4-16 vehicle insurer may cancel a motor vehicle liability insurance
4-17 policy if each motor vehicle covered under the policy is no longer
4-18 owned by or in the possession of the insured or is no longer
4-19 operable as a motor vehicle. The commissioner by rule shall
4-20 prescribe the appropriate form of proof to be submitted to an
4-21 insurer before a policy may be canceled under this subsection.
4-22 (c) An insurer may require advance payment of all premiums
4-23 owed on a motor vehicle liability insurance policy for the period
4-24 that a policy is not subject to cancellation under this section.
4-25 (d) The commissioner may adopt rules as necessary to
4-26 implement this section.
4-27 SECTION 5. This Act takes effect September 1, 1999.
5-1 SECTION 6. (a) The change in law made by Sections 1 and 2
5-2 of this Act applies only to evidence of financial responsibility
5-3 under Chapter 601, Transportation Code, that is used to comply with
5-4 the requirements of that chapter on or after January 1, 2000.
5-5 Evidence of financial responsibility used before January 1, 2000,
5-6 is governed by the law in effect immediately before the effective
5-7 date of this Act, and that law is continued in effect for that
5-8 purpose.
5-9 (b) The change in law made by Sections 3 and 4 of this Act
5-10 applies only to a motor vehicle liability insurance policy that is
5-11 delivered, issued for delivery, or renewed on or after January 1,
5-12 2000. A policy that is delivered, issued for delivery, or renewed
5-13 before January 1, 2000, is governed by the law as it existed
5-14 immediately before the effective date of this Act, and that law is
5-15 continued in effect for that purpose.
5-16 SECTION 7. The importance of this legislation and the
5-17 crowded condition of the calendars in both houses create an
5-18 emergency and an imperative public necessity that the
5-19 constitutional rule requiring bills to be read on three several
5-20 days in each house be suspended, and this rule is hereby suspended.