SRC-MWN, TBR S.B. 693 77(R)BILL ANALYSIS


Senate Research CenterS.B. 693
By: Lucio
Business & Commerce
6/27/2001
Enrolled


DIGEST AND PURPOSE 

Many motorists entering Texas from Mexico are contributing to the
population of uninsured motorists who do not have insurance to cover auto
accidents that may occur while they are in Texas.  S.B. 693 allows the
commissioner of insurance to establish a system of short-term auto
liability insurance to provide coverage for non-Texas residents operating a
vehicle in Texas. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the commissioner of insurance
in SECTION 1 (Article 5.01C, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 5A, Insurance Code, by adding Article 5.01C, as
follows: 

Art. 5.01C.  SHORT-TERM LIABILITY INSURANCE FOR NON-TEXAS RESIDENT
MOTORISTS VISITING THIS STATE. 

Sec. 1.  DEFINITIONS.  Defines "insurer," "motor vehicle," and "short-term
liability insurance policy." 

Sec. 2.  RULES.  (a) Authorizes the commissioner of insurance
(commissioner) by rule to establish a program to provide for the sale of
short-term liability insurance policies to nonTexas resident motorists
visiting this state. 

(b)  Authorizes the commissioner to negotiate an agreement with any insurer
under which the insurer will sell policies described by Subsection (a) of
this section. 

Sec. 3.  LICENSE REQUIRED.  Requires a person representing an insurer in
selling shortterm liability insurance policies under this article to be
licensed under Subchapter A, Chapter 21, of this code. 

Sec. 4.  FORMS.  Requires that an insurer selling short-term liability
insurance policies under this article use the policy forms adopted by the
commissioner under Article 5.06 of this code unless the insurer is exempt
from using those forms. 

SECTION 2.  Effective date: September 1, 2001.