By Burnam H.B. No. 1674
77R4444 MXM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to access to motor vehicle insurance coverage for good
1-3 drivers; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading to Article 21.49-2B, Insurance Code,
1-6 is amended to read as follows:
1-7 Art. 21.49-2B. AVAILABILITY, CANCELLATION, AND NONRENEWAL OF
1-8 CERTAIN PROPERTY AND CASUALTY POLICIES
1-9 SECTION 2. Article 21.49-2B, Insurance Code, is amended by
1-10 adding Section 4A to read as follows:
1-11 Sec. 4A. COVERAGE FOR GOOD DRIVERS. (a) In this section:
1-12 (1) "Good driver" means an individual who:
1-13 (A) has been licensed for at least three years
1-14 to drive the type of motor vehicle to be insured;
1-15 (B) during the previous three years, has not:
1-16 (i) been substantially at fault in a motor
1-17 vehicle accident that resulted in bodily injury, death, or property
1-18 damage;
1-19 (ii) been convicted of a violation of a
1-20 traffic safety regulation that involved a moving vehicle;
1-21 (iii) had more than one dismissal of a
1-22 charge under Subchapter B, Chapter 543, Transportation Code; and
1-23 (iv) been convicted of an offense under
1-24 Section 49.04, Penal Code, or Section 106.041, Alcoholic Beverage
2-1 Code; and
2-2 (C) has never made a fraudulent insurance claim.
2-3 (2) "Traffic safety regulation" means a law or
2-4 ordinance of this state or a political subdivision of this state
2-5 relating to the operation of a motor vehicle other than a
2-6 regulation relating to the conduct of a pedestrian or the parking
2-7 of a motor vehicle.
2-8 (b) Except as otherwise provided by this article, a motor
2-9 vehicle insurer may not cancel, nonrenew, or refuse to offer a
2-10 policy of motor vehicle insurance to a good driver.
2-11 (c) At least 30 days before the date a motor vehicle insurer
2-12 who does not offer a policy regulated by Article 5.101 of this code
2-13 is required to renew a policy under which a good driver is an
2-14 insured, or on application for a policy by an individual who
2-15 qualifies as a good driver, the motor vehicle insurer shall provide
2-16 to the named insured or applicant a notice, in the form prescribed
2-17 by the commissioner, that includes:
2-18 (1) an explanation of the different types of motor
2-19 vehicle insurance companies in this state and the manner in which
2-20 the rates for the policies of those insurance companies are subject
2-21 to regulation under this code;
2-22 (2) a list of the affiliates of that insurer who offer
2-23 a policy regulated under Article 5.101 of this code; and
2-24 (3) other information the commissioner by rule
2-25 requires.
2-26 (d) A violation of this section is an unfair and deceptive
2-27 practice in the business of insurance under Article 21.21 of this
3-1 code. Compliance with this section does not create an exemption
3-2 from Article 21.21-6 of this code, as added by Chapter 415, Acts of
3-3 the 74th Legislature, Regular Session, 1995, or other requirements.
3-4 SECTION 3. Article 21.49-2B, Insurance Code, as amended by
3-5 this Act, applies only to an insurance policy delivered, issued for
3-6 delivery, or renewed on or after January 1, 2002. A policy
3-7 delivered, issued for delivery, or renewed before January 1, 2002,
3-8 is governed by the law as it existed immediately before the
3-9 effective date of this Act, and that law is continued in effect for
3-10 that purpose.
3-11 SECTION 4. This Act takes effect September 1, 2001.