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.
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