By Oliveira                                           H.B. No. 3393
         77R8551 PB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the adoption and use of certain consumer information
 1-3     materials in foreign languages regarding private passenger motor
 1-4     vehicle insurance coverage.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Chapter 1, Insurance Code, is amended by adding
 1-7     Article 1.35E to read as follows:
 1-8           Art. 1.35E.  CONSUMER INFORMATION IN LANGUAGES OTHER THAN
 1-9     ENGLISH REQUIRED. (a)  The commissioner or, at the request of the
1-10     commissioner, the office of public insurance counsel  shall develop
1-11     or adopt an  informational sheet in the Spanish language that
1-12     provides a general explanation of the terms most commonly used in
1-13     private passenger motor vehicle insurance policies.   The
1-14     commissioner may develop informational sheets as provided by this
1-15     article in foreign languages other than Spanish, as determined
1-16     necessary by the commissioner.
1-17           (b)  The department shall make an informational sheet
1-18     developed under this article available to the public.  After an
1-19     informational sheet is developed, the department may produce public
1-20     service announcements concerning the availability of the
1-21     informational sheets, to be used in those communities that the
1-22     commissioner considers would be likely to benefit from the
1-23     information.
1-24           (c)  An informational sheet developed under this article is
 2-1     intended to provide only a general explanation of the applicable
 2-2     insurance terms.  In the event of a dispute between an insurer and
 2-3     an insured, the policy as written in the English language prevails.
 2-4     The development of informational sheets or the use of the
 2-5     informational sheets by an insured, insurer, agent, broker, or the
 2-6     state may not be interpreted as creating a duty or obligation to
 2-7     provide additional information or insurance policies in the Spanish
 2-8     language or any other language.
 2-9           (d)  An informational sheet developed under this article must
2-10     include a disclaimer, prominently printed in 24-point type at the
2-11     beginning of the informational sheet that contains the following
2-12     information in the Spanish language or other language, as
2-13     applicable:
2-14           "This informational sheet is for informational purposes only.
2-15     The actual terms of an insurance policy prevail over the
2-16     information provided in the informational sheet.  The policy is the
2-17     sole source of the rights and obligations of the insurer and the
2-18     insured.  In the event of a dispute, the insurance policy controls,
2-19     and a court will rely on the policy as it is written in the English
2-20     language to resolve the dispute.  The information contained in the
2-21     informational sheet does not create rights or obligations on the
2-22     part of the insured, insurer, agent, broker, or the state.  The
2-23     informational sheet is not intended to be a substitute for the
2-24     actual policy as written in the English language."
2-25           (e)  This article does not prevent an insurer or a person who
2-26     holds a license issued under this code from advertising an
2-27     insurance policy, the availability of a translation of an insurance
 3-1     policy, or the availability of a foreign language informational
 3-2     sheet in a language other than English if the advertisement clearly
 3-3     states that the insurance policy is only available in the English
 3-4     language.  However, in the case of a dispute, the insurance policy
 3-5     controls, and an advertisement for an insurance policy,
 3-6     translation, or informational sheet may not be construed to modify
 3-7     or change the insurance policy.
 3-8           (f)  The commissioner may develop informational sheets as
 3-9     provided by this article regarding other lines of insurance.
3-10           SECTION 2. (a)  Except as provided by Subsection (b) of this
3-11     section, this Act takes effect September 1, 2001.
3-12           (b)  An informational sheet required by Article 1.35E,
3-13     Insurance Code, as added by this Act, must be available to the
3-14     public as required by that article not later than January 1, 2002.