By: Truan, et al. S.B. No. 186
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to motor vehicle insurance premium discounts for certain
1-3 individuals on active military duty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is
1-6 amended by adding Article 5.03-6 to read as follows:
1-7 Art. 5.03-6. PREMIUM DISCOUNT FOR UNITED STATES ARMED FORCES
1-8 PERSONNEL
1-9 Sec. 1. DEFINITIONS. In this article:
1-10 (1) "Applicant" means an individual who applies under
1-11 this article for a discount in motor vehicle insurance premiums.
1-12 (2) "Insurer" means an insurance company,
1-13 interinsurance exchange, mutual, capital stock company, fraternal
1-14 benefit society, local mutual aid association, county mutual,
1-15 reciprocal, association, Lloyd's plan insurer, or other entity
1-16 writing motor vehicle insurance in this state. The term includes
1-17 an affiliate, as defined by Section 2, Article 21.49-1, of this
1-18 code.
1-19 (3) "Motor vehicle" means any private passenger
1-20 vehicle that:
1-21 (A) is registered in a state; and
1-22 (B) has a gross weight of 25,000 pounds or less.
1-23 Sec. 2. DISCOUNT AUTHORIZED; ELIGIBILITY CONDITIONS FOR
1-24 DRIVERS. (a) An insurer who delivers or issues for delivery in
1-25 this state a motor vehicle insurance policy, on receipt of written
2-1 verification from the insured that the insured or a family member
2-2 covered by the policy is eligible under Subsection (b) of this
2-3 section, may grant a discount in the amount provided by Subsection
2-4 (f) of this section in the premiums charged for the liability,
2-5 medical payments, personal injury protection, and collision
2-6 coverage only for the motor vehicle designated to be driven by the
2-7 eligible individual.
2-8 (b) To be eligible for the discount authorized under
2-9 Subsection (a) of this section, an applicant must:
2-10 (1) be licensed to drive in a state;
2-11 (2) be on active duty in the United States armed
2-12 forces or be the spouse of an individual on active duty in the
2-13 United States armed forces;
2-14 (3) have held a driver's license for at least three
2-15 years on the date the application is filed;
2-16 (4) have not, during the three years preceding the
2-17 date of the application, been convicted of violating a law or
2-18 ordinance of a state or a political subdivision of a state relating
2-19 to the operation of a moving motor vehicle; and
2-20 (5) have not, during the three years preceding the
2-21 date of the application, been found at fault in a motor vehicle
2-22 accident.
2-23 (c) An applicant is not eligible to receive a discount under
2-24 this article if the applicant has been convicted of an offense
2-25 relating to the operation of a motor vehicle under:
2-26 (1) Chapter 49, Penal Code;
3-1 (2) Article 6701l-1, Revised Statutes, as that statute
3-2 existed before repeal by Chapter 900, Acts of the 73rd Legislature,
3-3 Regular Session, 1993, or Section 19.05, Penal Code, as that
3-4 statute existed before amendment by Chapter 900, Acts of the 73rd
3-5 Legislature, Regular Session, 1993; or
3-6 (3) another state's statute similar to a statute
3-7 described by Subdivision (1) or (2) of this subsection.
3-8 (d) For purposes of Subsections (b) and (c) of this section,
3-9 an applicant is considered to have been convicted in a case if:
3-10 (1) a sentence is imposed; or
3-11 (2) the applicant receives community supervision or
3-12 analogous treatment under the law of another state.
3-13 (e) The commissioner by rule may establish additional
3-14 requirements for receipt of a discount under this article.
3-15 (f) The commissioner by rule shall set the amount of the
3-16 discount applicable under this article and may adopt other rules
3-17 necessary for the implementation of this article.
3-18 Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) An
3-19 individual may not continue to receive a discount under this
3-20 article after the first date on which the individual fails to
3-21 satisfy the requirements of Section 2 of this article unless the
3-22 individual reestablishes eligibility under this article.
3-23 (b) An insurer shall revoke a discount under this article if
3-24 an applicant for the discount knowingly provides false information
3-25 in or with the application.
3-26 SECTION 2. This Act applies only to a motor vehicle
4-1 insurance policy that is delivered, issued for delivery, or renewed
4-2 on or after January 1, 2002. A policy that is delivered, issued
4-3 for delivery, or renewed before January 1, 2002, is governed by the
4-4 law as it existed immediately before the effective date of this
4-5 Act, and that law is continued in effect for that purpose.
4-6 SECTION 3. This Act takes effect September 1, 2001.