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


Senate Research CenterC.S.S.B. 693
77R6452 AJA-FBy: Lucio
Business & Commerce
3/7/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, 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. C.S.S.B. 693 allows
the commissioner of insurance to establish a system to provide short-term
auto liability insurance that would provide coverage for non-Texas
residents while operating a vehicle in Texas. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the commissioner of insurance
in SECTION 1(Article 5.01, 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 MOTORISTS ENTERING THIS
STATE FROM MEXICO. 

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.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  Amends As Filed S.B. 693, in proposed Article 5.01C, Section 2,
to authorize the commissioner of insurance by rule to establish a program
to provide for the sale of short-term liability insurance policies to
non-Texas resident motorists visiting this state, rather than to establish
by rule a  program to provide for the sale of short-term liability
insurance policies to motorists entering this state at Texas-Mexico border
crossings and to increase the availability of those policies.  Changes the
relating clause to read "relating to short-term motor vehicle liability
insurance policies for non-Texas resident motorists visiting this state."