SRC-MWN H.B. 2932 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2932
77R11735 AJA-DBy: Lewis, Glenn (Carona)
Business & Commerce
5/10/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, an insurance company may charge a surcharge on premiums
for vehicle insurance if the insured has been convicted of driving while
intoxicated, intoxication assault, or intoxication manslaughter. H.B. 2932
authorizes an insurer to reduce the premium surcharge by up to 50 percent
for an insured convicted of such an offense whose insured motor vehicle is
equipped with a motor vehicle ignition interlock device.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 5.03-1, Insurance Code, as follows:
 
 Art. 5.03-1.  PREMIUM SURCHARGE
 
Sec. 1.  New heading: SURCHARGE AUTHORIZED. Requires a premium surcharge in
an amount to be prescribed by the commissioner, rather than the State Board
of Insurance, to be assessed by an insurer described by Article 5.01 of
this code against an insured for no more than three years immediately
following the date of conviction of the insured of an offense committed
while operating a motor vehicle under Section 49.04 or 49.07, Penal Code,
or an offense under Section 49.08, Penal Code.  Requires the premium
surcharge to be applied only to private passenger automobile policies as
defined by the commissioner, rather than the State Board of Insurance.
Makes a conforming change. 

Sec. 2.  New heading: SUBSEQUENT CONVICTION. Provides that if an insured
assessed a premium surcharge as a result of a conviction of an offense
described by Section 1 of this article is subsequently convicted of one of
those offenses, rather than statutes,  during the period the insured is
assessed the premium surcharge, the period for which the premium surcharge
shall be imposed is increased by three additional consecutive years for
each conviction. Makes conforming and nonsubstantive changes. 

Sec. 3.  SURCHARGE REDUCTION AUTHORIZED. (a)  Defines "motor vehicle
ignition interlock device." 

(b)  Authorizes an insurer to reduce the premium surcharge prescribed under
this article by up to 50 percent for an insured whose insured motor vehicle
is equipped with a motor vehicle ignition interlock device as required by a
court order following the insured's conviction of an offense described by
Section 1 of this article.  Provides that the insured is entitled to a
discount under this section only for the period that the vehicle is
equipped with the device. 

 (c)  Authorizes an insurer to endorse a policy to restrict coverage under
the policy to the motor vehicle that is equipped with a motor vehicle
ignition interlock device. 
 
SECTION 2. Effective date: September 1, 2001.