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.