By Tillery                                            H.B. No. 3455
         77R6283 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to provision of certain automobile damage information to
 1-3     an applicant for motor vehicle liability insurance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
 1-6     amended by adding Article 21.76 to read as follows:
 1-7           Art. 21.76.  PROVISION OF AUTOMOBILE DAMAGE INFORMATION TO
 1-8     APPLICANT FOR MOTOR VEHICLE INSURANCE. (a)  In this article:
 1-9                 (1)  "Initial motor vehicle insurance policy" means the
1-10     first motor vehicle insurance policy that covers a motor vehicle
1-11     after the insured purchases the motor vehicle. The term includes a
1-12     policy issued by Lloyd's plan, reciprocal or interinsurance
1-13     exchange, or county mutual insurance company.
1-14                 (2)  "Substantial damage" has the meaning the
1-15     commissioner assigns by rule for the purposes of this article.
1-16           (b)  An insurance agent shall inform a person who applies for
1-17     an initial motor vehicle liability insurance policy of any
1-18     information obtained by the agent through an underwriting exchange
1-19     that indicates that the motor vehicle for which coverage is sought
1-20     sustained substantial damage before the date the person purchased
1-21     the motor vehicle.
1-22           (c)  The commissioner shall adopt rules as necessary to
1-23     implement this article.
1-24           SECTION 2. (a)  Not later than November 1, 2001, the
 2-1     commissioner of insurance shall adopt all rules necessary to
 2-2     implement Article 21.76, Insurance Code, as added by this Act.
 2-3           (b)  Article 21.76, Insurance Code, as added by this Act,
 2-4     applies only to an application for an initial motor vehicle
 2-5     insurance policy, as described by that article, that is made on or
 2-6     after January 1, 2002.
 2-7           SECTION 3. This Act takes effect September 1, 2001.