HBA-TBM H.B. 999 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 999
By: Grusendorf
Insurance
2/23/2001
Introduced



BACKGROUND AND PURPOSE 

When the cost of transporting a vehicle between dealerships does not
justify the use of a tractor trailer to haul the vehicle, dealers and
traders rely on drive-a-way operators to drive the vehicle under its own
power from one dealership to another.  Drive-a-way operators have found it
difficult to obtain liability insurance for vehicles the operator is
transferring between dealerships.  House Bill 999 creates the Assigned Risk
Plan for Drive-a-way Operators that must be offered by  authorized
insurance companies who write vehicle liability insurance in Texas.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of insurance in
SECTION 2 (Section 6, Article. 21.82, Insurance Code) of this bill.   

ANALYSIS

House Bill 999 amends the Insurance Code to create the Texas Assigned Risk
Plan for Drive-a-way Operators (assigned risk plan), a nonprofit corporate
body composed of all authorized insurers that write motor vehicle liability
insurance coverage.  The bill requires each authorized insurer to be a
member of the assigned risk plan as long as that plan is in existence as a
condition of the insurer's authority to write motor vehicle liability
insurance in this state.   

The bill sets forth provisions regarding the administration of the plan by
a governing committee and the membership, powers, and duties of such a
committee.  The bill sets forth provisions regarding the composition of the
plan of operation of the assigned risk plan, which is subject to the
approval of the commissioner of insurance (commissioner).  The bill
authorizes the assigned risk plan to collect funds from the member insurers
to provide for the operation of the assigned risk plan and sets forth
provisions by which the funds may be collected.  The bill specifies the
duties and functions of the assigned risk plan.  The bill requires the
commissioner, at least annually, to conduct a hearing to determine
appropriate rates to be charged for insurance provided through the assigned
risk plan, and sets forth provisions regarding setting such rates.  The
bill requires the commissioner to adopt rules and statistical plans to be
used by each insurer in the recording and reporting of information required
by the commissioner.   

The bill sets forth provisions regarding immunity from liability for the
assigned risk plan and certain other persons affiliated with it.  The Texas
Assigned Risk Plan for Drive-a-way Operators is not required to issue such
a policy until January 1, 2002.   

EFFECTIVE DATE

September 1, 2001.