By Moreno of Harris H.B. No. 2500 76R8484 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a prohibition on the use of certain underwriting 1-3 guidelines in motor vehicle insurance. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Chapter 21, Insurance Code, is 1-6 amended by adding Article 21.21-13 to read as follows: 1-7 Art. 21.21-13. PROHIBITION ON USE IN MOTOR VEHICLE INSURANCE 1-8 OF UNDERWRITING GUIDELINES BASED ON CANCELLATION OF CERTAIN 1-9 PREVIOUS COVERAGE 1-10 Sec. 1. DEFINITIONS. In this article: 1-11 (1) "Insurer" means an insurer authorized to write 1-12 motor vehicle insurance in this state, including: 1-13 (A) a county mutual insurance company; 1-14 (B) a Lloyd's plan company; or 1-15 (C) a reciprocal or interinsurance exchange. 1-16 (2) "Underwriting guideline" means a rule, standard, 1-17 marketing decision, or practice that is used by an insurer or an 1-18 agent of an insurer to examine, bind, accept, reject, cancel, or 1-19 limit insurance coverage to groups of consumers of insurance. 1-20 Sec. 2. APPLICATION. This article applies to a personal 1-21 automobile insurance policy. 1-22 Sec. 3. PROHIBITION; EXEMPTION. An insurer may not use an 1-23 underwriting guideline that rejects or limits insurance coverage 1-24 based solely on whether an applicant for insurance has had prior 2-1 motor vehicle insurance coverage canceled by an insurer. 2-2 Sec. 4. PENALTY. An insurer who violates this article 2-3 commits an unfair practice in violation of Article 21.21 of this 2-4 code and is subject to the penalties imposed under that article. 2-5 SECTION 2. Article 21.21-13, Insurance Code, as added by 2-6 this Act, applies only to an insurance policy delivered, issued for 2-7 delivery, or renewed on or after January 1, 2000. A policy 2-8 delivered, issued for delivery, or renewed before January 1, 2000, 2-9 is governed by the law as it existed immediately before the 2-10 effective date of this Act, and that law is continued in effect for 2-11 that purpose. 2-12 SECTION 3. This Act takes effect September 1, 1999. 2-13 SECTION 4. The importance of this legislation and the 2-14 crowded condition of the calendars in both houses create an 2-15 emergency and an imperative public necessity that the 2-16 constitutional rule requiring bills to be read on three several 2-17 days in each house be suspended, and this rule is hereby suspended.