1-1 AN ACT 1-2 relating to short-term motor vehicle liability insurance policies 1-3 for non-Texas resident motorists visiting this state. 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 5.01C to read as follows: 1-7 Art. 5.01C. SHORT-TERM LIABILITY INSURANCE FOR NON-TEXAS 1-8 RESIDENT MOTORISTS VISITING THIS STATE 1-9 Sec. 1. DEFINITIONS. In this article: 1-10 (1) "Insurer" means an insurance company, 1-11 interinsurance exchange, mutual, capital stock company, county 1-12 mutual, reciprocal association, Lloyd's plan insurer, or other 1-13 entity authorized to write motor vehicle insurance in this state. 1-14 (2) "Motor vehicle" means any private passenger 1-15 vehicle or utility type vehicle that has a gross weight of 25,000 1-16 pounds or less. 1-17 (3) "Short-term liability insurance policy" means an 1-18 insurance policy that: 1-19 (A) provides coverage for at least 24 hours but 1-20 not for more than one week; 1-21 (B) meets the requirements of Chapter 601, 1-22 Transportation Code; 1-23 (C) covers liability for bodily injury, death, 1-24 and property damage arising from the use or operation of a motor 1-25 vehicle; and 2-1 (D) is not insurance assigned to an authorized 2-2 insurance company by the Texas Automobile Insurance Plan 2-3 Association under Section 4(a), Article 21.81, of this code. 2-4 Sec. 2. RULES. (a) The commissioner by rule may establish 2-5 a program to provide for the sale of short-term liability 2-6 insurance policies to non-Texas resident motorists visiting this 2-7 state. 2-8 (b) The commissioner may negotiate an agreement with any 2-9 insurer under which the insurer will sell policies described by 2-10 Subsection (a) of this section. 2-11 Sec. 3. LICENSE REQUIRED. A person representing an insurer 2-12 in selling short-term liability insurance policies under this 2-13 article must be licensed under Subchapter A, Chapter 21, of this 2-14 code. 2-15 Sec. 4. FORMS. An insurer selling short-term liability 2-16 insurance policies under this article must use the policy forms 2-17 adopted by the commissioner under Article 5.06 of this code unless 2-18 the insurer is exempt from using those forms. 2-19 SECTION 2. This Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 693 passed the Senate on March 15, 2001, by the following vote: Yeas 30, Nays 0, one present, not voting; and that the Senate concurred in House amendment on May 2, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 693 passed the House, with amendment, on April 27, 2001, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor