HBA-NRS H.B. 296 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 296
By: Seaman
Insurance
2/9/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, drivers may take a driving safety course to both dismiss
a traffic ticket and receive a discount on their auto insurance. The effect
of such law is that drivers charged with a traffic violation may receive
lower insurance rates while drivers who do not attend a driving safety
course do not receive such a discount and may pay higher premiums to cover
experience loss ratios as a result of drivers with traffic violations
receiving a discount. House Bill 296 does not require an insurer to offer a
premium discount to individuals who complete a driving safety course to
dismiss a traffic violation. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 296 amends the Code of Criminal Procedure to provide that an
insurer that delivers or issues for delivery a motor vehicle insurance
policy to a person against whom a charge for a traffic offense is dismissed
is not required to offer a premium discount on the policy for completion of
a driving safety course taken to dismiss a traffic charge. 

EFFECTIVE DATE

September 1, 2001.