By Burnam H.B. No. 3098
76R7262 DB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to establishment of the Texas Motor Vehicle Insurance
1-3 System and to liability for motor vehicle accidents.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Insurance Code is amended by adding Chapter
1-6 30 to read as follows:
1-7 CHAPTER 30. TEXAS MOTOR VEHICLE INSURANCE SYSTEM
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Art. 30.01. DEFINITIONS. In this chapter:
1-10 (1) "Covered person" means a person entitled to
1-11 benefits under this chapter.
1-12 (2) "Dealer" has the meaning assigned by Chapter 153,
1-13 Tax Code.
1-14 (3) "Account" means the Texas Motor Vehicle Insurance
1-15 System account.
1-16 (4) "Motor fuel" has the meaning assigned by Chapter
1-17 153, Tax Code.
1-18 (5) "Motor vehicle insurer" means an insurer
1-19 authorized to write motor vehicle insurance in this state,
1-20 including:
1-21 (A) an insurance company;
1-22 (B) a mutual insurance company, including a
1-23 county mutual insurance company;
1-24 (C) a reciprocal insurance company or
2-1 interinsurance exchange; and
2-2 (D) a Lloyd's plan insurer.
2-3 (6) "Motor vehicle" has the meaning assigned by
2-4 Section 541.201, Transportation Code.
2-5 (7) "System" means the Texas Motor Vehicle Insurance
2-6 System established by this chapter.
2-7 Art. 30.02. TEXAS MOTOR VEHICLE INSURANCE SYSTEM. (a) The
2-8 Texas Motor Vehicle Insurance System is established to provide
2-9 motor vehicle insurance coverage in accordance with this chapter.
2-10 (b) The system is administered by the department in
2-11 accordance with rules adopted by the commissioner.
2-12 Art. 30.03. RULES. The commissioner may adopt rules as
2-13 necessary to implement this chapter.
2-14 Art. 30.04. AUTHORITY TO CONTRACT. The department may
2-15 contract with a private accounting firm or other entity as
2-16 appropriate to administer some or all of the functions of the
2-17 department under this chapter.
2-18 Art. 30.05. TEXAS MOTOR VEHICLE INSURANCE ACCOUNT. (a) The
2-19 Texas Motor Vehicle Insurance System account is an account in the
2-20 general revenue fund.
2-21 (b) The account is composed of premiums and premium
2-22 surcharges collected under this chapter. Interest on money in the
2-23 account is credited to the account.
2-24 (c) Money in the account may be used only for the costs of
2-25 administering the system and to pay the cost of providing the
2-26 coverage required by this chapter.
2-27 Art. 30.06. PARTICIPATION OF PUBLIC INSURANCE COUNSEL. The
3-1 public insurance counsel may participate in a proceeding held to
3-2 adopt premium rates or surcharges under this chapter in accordance
3-3 with Article 1.35A of this code.
3-4 SUBCHAPTER B. COVERAGE
3-5 Art. 30.31. SYSTEM COVERAGE; NO FAULT. (a) The system
3-6 shall provide coverage for first party benefits to covered persons
3-7 in accordance with this subchapter.
3-8 (b) A benefit payable under coverage provided through the
3-9 system is payable without regard to the fault of the covered
3-10 person.
3-11 Art. 30.32. COVERED PERSONS. The coverage must provide
3-12 benefits for a person who suffers bodily injury, death, or property
3-13 damage through the maintenance, operation, or use of a motor
3-14 vehicle in this state, without regard to whether the person is a
3-15 resident of this state or whether the motor vehicle is registered
3-16 in this state.
3-17 Art. 30.33. BENEFITS. (a) The coverage must provide first
3-18 party benefits for:
3-19 (1) reasonable and necessary medical expenses, without
3-20 a limit or deductible;
3-21 (2) loss of income from work for a period of one year
3-22 after the date of the accident causing injury, subject to a limit
3-23 of $25,000 and with a deductible equal to one week's wages;
3-24 (3) damage to a motor vehicle, subject to a limit of
3-25 five percent of the value of the motor vehicle, as established by
3-26 rules adopted by the board; and
3-27 (4) damage to property other than a motor vehicle,
4-1 subject to a deductible of $500.
4-2 (b) Coverage through the system for medical expenses under
4-3 Subsection (a)(1) of this article is secondary to any other
4-4 insurance or benefit plan providing coverage for the expenses.
4-5 (c) A benefit for damage to a motor vehicle may not be paid
4-6 under Subsection (a)(3) of this article unless the damage to the
4-7 vehicle exceeds $500.
4-8 (d) A benefit for damage to a motor vehicle under Subsection
4-9 (a)(3) of this article may not include amounts necessary for new
4-10 replacement parts or replacement parts manufactured by a particular
4-11 manufacturer if alternative replacement parts are available at a
4-12 lower cost.
4-13 (e) The system shall offer additional coverage packages
4-14 providing benefits for loss of income from work for a period of one
4-15 year after the date of the accident causing injury, subject to
4-16 benefit limits of $50,000 and $75,000, respectively. The board
4-17 shall adopt premium rates to be charged for the additional coverage
4-18 packages provided under this subsection. The additional premium
4-19 shall be collected by the county tax collector in accordance with
4-20 Article 30.73 of this code.
4-21 Art. 30.34. OUT-OF-STATE EXCLUSION. The system may not
4-22 provide coverage for bodily injury, death, or property damage
4-23 arising out of the maintenance, operation, or use of a motor
4-24 vehicle outside this state.
4-25 Art. 30.35. DUPLICATION OF COVERAGE PROHIBITED; SUPPLEMENTAL
4-26 INSURANCE. (a) A motor vehicle insurer may not issue insurance
4-27 providing benefits that duplicate the benefits provided under this
5-1 chapter except through the system as provided by Subchapter E of
5-2 this chapter.
5-3 (b) A motor vehicle insurer, subject to approval by the
5-4 commissioner and in accordance with rules adopted by the
5-5 commissioner, may issue insurance providing benefits or indemnity
5-6 coverage that supplements the benefits provided under this chapter,
5-7 including insurance providing:
5-8 (1) coverage for bodily injury, death, or property
5-9 damage arising from the maintenance, operation, or use of a vehicle
5-10 outside this state;
5-11 (2) additional coverage for property damage; and
5-12 (3) coverage for liability for damages for a serious
5-13 injury, as defined by rules adopted by the commissioner, arising
5-14 from the maintenance, operation, or use of a motor vehicle in this
5-15 state.
5-16 Art. 30.36. POLICY FORMS AND ENDORSEMENTS. The commissioner
5-17 shall adopt standard policy forms and endorsements for the issuance
5-18 of coverage under this chapter.
5-19 SUBCHAPTER C. LIABILITY FOR MOTOR VEHICLE ACCIDENTS
5-20 Art. 30.51. TORT LIABILITY LIMITED. (a) Except as provided
5-21 by this subchapter, a person may not recover damages for bodily
5-22 injury or property damage arising out of the maintenance,
5-23 operation, or use of a motor vehicle in this state.
5-24 (b) Any person involved in a motor vehicle accident in this
5-25 state is subject to the limitations of this article.
5-26 Art. 30.52. EXCEPTIONS. Article 30.51(a) of this code does
5-27 not apply to a claim:
6-1 (1) for damages for serious bodily injury, as defined
6-2 by rules adopted by the commissioner;
6-3 (2) against a motor vehicle manufacturer alleging
6-4 gross negligence in the manufacture of a motor vehicle; or
6-5 (3) against a governmental or other entity alleging
6-6 gross negligence in the design, construction, or maintenance of a
6-7 public roadway.
6-8 SUBCHAPTER D. COLLECTION OF PREMIUMS
6-9 Art. 30.71. PAY-AT-THE-PUMP PREMIUM. (a) The commissioner
6-10 shall adopt a pay-at-the-pump premium rate in accordance with this
6-11 article.
6-12 (b) The premium rate shall be established as a fixed rate
6-13 collected for each gallon of motor fuel sold in this state and
6-14 shall be in an amount necessary to fund coverage under this
6-15 chapter, adjusted to reflect the additional premiums and premium
6-16 surcharges collected under this subchapter.
6-17 Art. 30.72. COLLECTION OF PAY-AT-THE-PUMP PREMIUM. (a)
6-18 Each dealer in this state shall collect the premium on the first
6-19 sale for use of motor fuel in this state, and shall pay the premium
6-20 to the comptroller.
6-21 (b) The comptroller shall adopt rules governing:
6-22 (1) premium collection under this article;
6-23 (2) dealer recordkeeping and reporting; and
6-24 (3) premium payment to the comptroller.
6-25 (c) To the extent possible, the comptroller by rule shall
6-26 coordinate collection of the premium under this article with
6-27 collection of motor fuel taxes under Chapter 153, Tax Code.
7-1 Art. 30.73. REGISTRATION SURCHARGE; ALTERNATIVE-FUEL VEHICLE
7-2 PREMIUM; COLLECTION OF NECESSARY INFORMATION. (a) The
7-3 commissioner shall adopt premium surcharges to be paid at the time
7-4 a motor vehicle is registered.
7-5 (b) The commissioner shall adopt premium rates for
7-6 alternative-fuel vehicles to be paid at the time an
7-7 alternative-fuel vehicle is registered.
7-8 (c) The commissioner may adopt rules requiring the
7-9 collection of information relating to the motor vehicle and the
7-10 owner and operators of the vehicle at the time the motor vehicle is
7-11 registered.
7-12 (d) The premium surcharges adopted under this article shall
7-13 be in amounts reflecting the insurance risk of the vehicle
7-14 registered and may vary according to the type, average gas mileage,
7-15 and age of the motor vehicle registered, whether the vehicle is
7-16 used as a private passenger vehicle or as a commercial vehicle, and
7-17 other factors that relate to the insurance risk of the vehicle
7-18 registered.
7-19 (e) The commissioner may authorize a premium offset against
7-20 the registration fee for motor vehicles that pose a low insurance
7-21 risk in comparison to other motor vehicles.
7-22 (f) The department shall provide to each county tax
7-23 collector in this state a manual listing the applicable premium,
7-24 premium surcharge, or offset for each motor vehicle. The county
7-25 tax collector shall collect the premium or premium surcharge
7-26 required under this article and any additional premium paid under
7-27 Article 30.33(e) at the time the vehicle is registered and shall
8-1 pay the surcharge and additional premium to the comptroller. The
8-2 county tax collector shall reduce the registration fee by the
8-3 amount of any applicable offset. The comptroller shall transfer
8-4 the amount of the offset from the fund to the account to which
8-5 registration fees are deposited.
8-6 (g) The comptroller shall adopt rules governing the
8-7 collection and payment of the premium and premium surcharge under
8-8 this article and the accounting of offsets against registration
8-9 fees.
8-10 (h) The commissioner shall adopt a system under which the
8-11 owner of a motor vehicle is notified of the insurer to which the
8-12 motor vehicle is assigned at the time the owner registers the motor
8-13 vehicle.
8-14 Art. 30.74. SURCHARGE FOR TRAFFIC VIOLATION. (a) The
8-15 commissioner shall adopt premium surcharges to be paid on
8-16 conviction of an offense under the Transportation Code or Section
8-17 49.08, Penal Code.
8-18 (b) The premium surcharge shall vary with the severity of
8-19 the violation as it relates to the insurance risk of the convicted
8-20 person. The commissioner may not adopt a premium surcharge to be
8-21 paid on conviction of an offense that, in the opinion of the
8-22 commissioner, does not relate to safety or insurance risk.
8-23 (c) The department shall provide to each court in this state
8-24 a manual listing the applicable premium surcharge for each offense
8-25 for which a surcharge is made. The surcharge shall be collected at
8-26 the time of conviction or at the time any other fine or fee is
8-27 collected in connection with the offense. The surcharge shall be
9-1 paid to the comptroller.
9-2 (d) The comptroller shall adopt rules governing the
9-3 collection and payment of the surcharge under this article.
9-4 Art. 30.75. DEPOSIT OF PREMIUM TO ACCOUNT. The comptroller
9-5 shall deposit premiums and premium surcharges collected under this
9-6 subchapter to the credit of the account.
9-7 Art. 30.76. BORDER AREAS. (a) The commissioner, by rule,
9-8 may designate specified areas of the state as border areas.
9-9 (b) The owner or operator of a motor vehicle registered in a
9-10 border area may be required to demonstrate that the owner or
9-11 operator purchases motor fuel for the vehicle on a regular basis in
9-12 this state before benefits are paid to that owner, operator, or a
9-13 member of the owner's family under this chapter.
9-14 (c) For purposes of this article, it is presumed that the
9-15 owner or operator purchases motor fuel for the vehicle on a regular
9-16 basis in this state if, during the seven days preceding the date of
9-17 the accident, the owner or operator purchased motor fuel in this
9-18 state.
9-19 (d) The owner or operator of a motor vehicle registered in a
9-20 border area who is unable to purchase motor fuel in this state on a
9-21 regular basis may apply to the commissioner to pay a premium, in an
9-22 amount adopted by the commissioner, at the time the vehicle is
9-23 registered.
9-24 SUBCHAPTER E. PROVISION OF COVERAGE
9-25 Art. 30.91. PROVISION OF COVERAGE FOR REGISTERED VEHICLES.
9-26 (a) Coverage for motor vehicles registered in this state shall be
9-27 issued by motor vehicle insurers in this state.
10-1 (b) The motor vehicle insurer to which a motor vehicle has
10-2 been assigned shall pay benefits for:
10-3 (1) the owner or operator of the vehicle;
10-4 (2) a member of the owner's family; and
10-5 (3) any other person injured through the maintenance,
10-6 operation, or use of the motor vehicle, including a passenger or
10-7 pedestrian, but not including the owner or operator of another
10-8 vehicle involved in the accident or a member of that owner's
10-9 family.
10-10 (c) If more than one motor vehicle is involved in an
10-11 accident, the motor vehicle insurers to which those vehicles have
10-12 been assigned shall share the cost of benefits paid to a person
10-13 described by Subdivision (b)(3) on a pro rata basis in accordance
10-14 with rules adopted by the commissioner.
10-15 Art. 30.92. MOTOR VEHICLES NOT REGISTERED IN THIS STATE.
10-16 (a) The system shall pay benefits for a covered person injured
10-17 through the maintenance, operation, or use in this state of a motor
10-18 vehicle that is not registered in this state.
10-19 (b) If a motor vehicle that is not registered in this state
10-20 is covered by a policy of motor vehicle insurance, the system shall
10-21 pay benefits only after any first party benefits provided under
10-22 that policy of insurance have been exhausted.
10-23 Art. 30.93. MOTOR VEHICLE INSURER PARTICIPATION. (a) The
10-24 department shall divide all motor vehicles registered in this state
10-25 into random groups of approximately 5,000 motor vehicles each.
10-26 (b) Motor vehicle insurers that satisfy the requirements of
10-27 specifications established by the commissioner may bid to provide
11-1 coverage to a group of motor vehicles in accordance with rules
11-2 adopted by the commissioner. The specifications established by the
11-3 commissioner must include requirements relating to equal employment
11-4 opportunities imposed on employers by state or federal law. The
11-5 specifications may require the motor vehicle insurer to institute
11-6 loss prevention programs.
11-7 (c) The bidding shall be conducted on an annual basis.
11-8 (d) The commissioner shall enter into a group coverage
11-9 agreement with a motor vehicle insurer who is a successful bidder
11-10 under Subsection (b) of this article and shall act as the
11-11 policyholder for each group.
11-12 (e) Not later than the 45th day after the date a motor
11-13 vehicle is registered, the department shall notify the operator of
11-14 the motor vehicle of the insurer to which the vehicle has been
11-15 assigned.
11-16 Art. 30.94. CLAIMS DATA. (a) The commissioner shall adopt
11-17 rules requiring motor vehicle insurers to submit to the department
11-18 data relating to claims for benefits.
11-19 (b) An insurer may not participate in the system unless the
11-20 insurer complies with the claims data reporting requirements of
11-21 this article.
11-22 Art. 30.95. SATISFACTION REPORT CARDS. (a) A motor vehicle
11-23 insurer providing coverage under this chapter shall supply a
11-24 customer satisfaction report card to any person submitting a claim
11-25 to the insurer under this chapter.
11-26 (b) The customer satisfaction report card shall be in a form
11-27 adopted by the commissioner and shall provide the person submitting
12-1 the claim the opportunity to report the person's satisfaction with
12-2 the motor vehicle insurer's settlement and service. The customer
12-3 satisfaction report card shall include instructions for returning
12-4 the card to the department or a designee of the department.
12-5 (c) The department shall compile the results of the customer
12-6 satisfaction report cards and report the results to the
12-7 commissioner.
12-8 (d) The commissioner may restrict or increase a motor
12-9 vehicle insurer's opportunity to bid on the basis of its
12-10 performance as indicated by the customer satisfaction report cards.
12-11 SECTION 2. (a) Chapter 601, Transportation Code, is
12-12 repealed.
12-13 (b) Sections 502.153 and 502.157, Transportation Code, are
12-14 repealed.
12-15 (c) Subchapter A, Chapter 5, Insurance Code, is repealed.
12-16 (d) This section takes effect September 1, 2000.
12-17 SECTION 3. For the first bidding period conducted under
12-18 Article 30.93, Insurance Code, as added by this Act, the board
12-19 shall adopt rules restricting bidding opportunities on the basis of
12-20 the bidder's market share of motor vehicle insurance issued in this
12-21 state.
12-22 SECTION 4. (a) The Texas Motor Vehicle Insurance System
12-23 shall provide motor vehicle insurance coverage in accordance with
12-24 Chapter 30, Insurance Code, as added by this Act, on and after
12-25 September 1, 2000.
12-26 (b) Premiums and premium surcharges may not be collected
12-27 under Subchapter D, Chapter 30, Insurance Code, as added by this
13-1 Act, before September 1, 2000.
13-2 (c) Notwithstanding Article 30.35, Insurance Code, as added
13-3 by this Act, a motor vehicle insurer may issue motor vehicle
13-4 insurance that provides coverage for periods ending before
13-5 September 1, 2000, in accordance with the law as it existed
13-6 immediately before the effective date of this Act, and that law is
13-7 continued in effect for that purpose.
13-8 SECTION 5. This Act takes effect only if the constitutional
13-9 amendment proposed by the 76th Legislature, Regular Session, 1999,
13-10 relating to authorizing the legislature to establish a
13-11 "pay-at-the-pump" motor vehicle insurance system is adopted. If
13-12 that amendment is not adopted, this Act has no effect.
13-13 SECTION 6. Except as provided by Section 2(d) of this Act,
13-14 this Act takes effect November 3, 1999.
13-15 SECTION 7. The importance of this legislation and the
13-16 crowded condition of the calendars in both houses create an
13-17 emergency and an imperative public necessity that the
13-18 constitutional rule requiring bills to be read on three several
13-19 days in each house be suspended, and this rule is hereby suspended.