1-1 By: Truan, et al. S.B. No. 186 1-2 (In the Senate - Filed December 28, 2000; January 11, 2001, 1-3 read first time and referred to Committee on Veteran Affairs and 1-4 Military Installations; February 26, 2001, reported favorably by 1-5 the following vote: Yeas 5, Nays 0; February 26, 2001, sent to 1-6 printer.) 1-7 A BILL TO BE ENTITLED 1-8 AN ACT 1-9 relating to motor vehicle insurance premium discounts for certain 1-10 individuals on active military duty. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is 1-13 amended by adding Article 5.03-6 to read as follows: 1-14 Art. 5.03-6. PREMIUM DISCOUNT FOR UNITED STATES ARMED FORCES 1-15 PERSONNEL 1-16 Sec. 1. DEFINITIONS. In this article: 1-17 (1) "Applicant" means an individual who applies under 1-18 this article for a discount in motor vehicle insurance premiums. 1-19 (2) "Insurer" means an insurance company, 1-20 interinsurance exchange, mutual, capital stock company, fraternal 1-21 benefit society, local mutual aid association, county mutual, 1-22 reciprocal, association, Lloyd's plan insurer, or other entity 1-23 writing motor vehicle insurance in this state. The term includes 1-24 an affiliate, as defined by Section 2, Article 21.49-1, of this 1-25 code. 1-26 (3) "Motor vehicle" means any private passenger 1-27 vehicle that: 1-28 (A) is registered in a state; and 1-29 (B) has a gross weight of 25,000 pounds or less. 1-30 Sec. 2. DISCOUNT AUTHORIZED; ELIGIBILITY CONDITIONS FOR 1-31 DRIVERS. (a) An insurer who delivers or issues for delivery in 1-32 this state a motor vehicle insurance policy, on receipt of written 1-33 verification from the insured that the insured or a family member 1-34 covered by the policy is eligible under Subsection (b) of this 1-35 section, may grant a discount in the amount provided by Subsection 1-36 (f) of this section in the premiums charged for the liability, 1-37 medical payments, personal injury protection, and collision 1-38 coverage only for the motor vehicle designated to be driven by the 1-39 eligible individual. 1-40 (b) To be eligible for the discount authorized under 1-41 Subsection (a) of this section, an applicant must: 1-42 (1) be licensed to drive in a state; 1-43 (2) be on active duty in the United States armed 1-44 forces or be the spouse of an individual on active duty in the 1-45 United States armed forces; 1-46 (3) have held a driver's license for at least three 1-47 years on the date the application is filed; 1-48 (4) have not, during the three years preceding the 1-49 date of the application, been convicted of violating a law or 1-50 ordinance of a state or a political subdivision of a state relating 1-51 to the operation of a moving motor vehicle; and 1-52 (5) have not, during the three years preceding the 1-53 date of the application, been found at fault in a motor vehicle 1-54 accident. 1-55 (c) An applicant is not eligible to receive a discount under 1-56 this article if the applicant has been convicted of an offense 1-57 relating to the operation of a motor vehicle under: 1-58 (1) Chapter 49, Penal Code; 1-59 (2) Article 6701l-1, Revised Statutes, as that statute 1-60 existed before repeal by Chapter 900, Acts of the 73rd Legislature, 1-61 Regular Session, 1993, or Section 19.05, Penal Code, as that 1-62 statute existed before amendment by Chapter 900, Acts of the 73rd 1-63 Legislature, Regular Session, 1993; or 1-64 (3) another state's statute similar to a statute 2-1 described by Subdivision (1) or (2) of this subsection. 2-2 (d) For purposes of Subsections (b) and (c) of this section, 2-3 an applicant is considered to have been convicted in a case if: 2-4 (1) a sentence is imposed; or 2-5 (2) the applicant receives community supervision or 2-6 analogous treatment under the law of another state. 2-7 (e) The commissioner by rule may establish additional 2-8 requirements for receipt of a discount under this article. 2-9 (f) The commissioner by rule shall set the amount of the 2-10 discount applicable under this article and may adopt other rules 2-11 necessary for the implementation of this article. 2-12 Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) An 2-13 individual may not continue to receive a discount under this 2-14 article after the first date on which the individual fails to 2-15 satisfy the requirements of Section 2 of this article unless the 2-16 individual reestablishes eligibility under this article. 2-17 (b) An insurer shall revoke a discount under this article if 2-18 an applicant for the discount knowingly provides false information 2-19 in or with the application. 2-20 SECTION 2. This Act applies only to a motor vehicle 2-21 insurance policy that is delivered, issued for delivery, or renewed 2-22 on or after January 1, 2002. A policy that is delivered, issued 2-23 for delivery, or renewed before January 1, 2002, is governed by the 2-24 law as it existed immediately before the effective date of this 2-25 Act, and that law is continued in effect for that purpose. 2-26 SECTION 3. This Act takes effect September 1, 2001. 2-27 * * * * *