SRC-CTC S.C.R. 45 77(R)   BILL ANALYSIS


Senate Research Center   S.C.R. 45
77R11169 JXC-DBy: Madla
Business & Commerce
4/23/2001
As Filed


DIGEST

Currently, state law requires motorists, as a condition of operating a
motor vehicle, to have established a level of financial responsibility in
one of several ways, the most common being the purchase of a motor vehicle
liability insurance policy that meets certain requirements.  The law also
requires motorists to provide evidence of financial responsibility under
certain circumstances.  Although a sharp decrease in the number of
uninsured motorists resulted immediately after passage of current law, the
number has increased since then, returning close to previous levels.  It is
estimated by the Texas Department of Insurance that between 17 and 26
percent of Texas drivers do not carry the requisite insurance, often due to
affordability or the ability to purchase insurance.  Some uninsured
motorists circumvent the law by producing fraudulent documentation when
required to provide evidence of insurance. 

PURPOSE 

As proposed, S.C.R. 45 directs the Texas Department of Insurance (TDI) to
initiate an interim study in cooperation with key agencies, such as the
Texas Department of Public Safety, to research and develop an economically
feasible insurance verification system that will focus on the detection,
investigation, and prosecution of motorists who falsify a standard of proof
motor vehicle liability insurance form.  Sets forth certain proposed
guidelines for the insurance verification system.  Requires TDI and other
involved agencies to present a complete report, not later than January 1,
2003, of facts and findings to the house and senate committees having
primary jurisdiction over insurance.  Requires the secretary of state to
forward an official copy of this resolution to the commissioner of
insurance.