By Lucio, et al.                                       S.B. No. 693
         77R6452 AJA-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to short-term motor vehicle liability insurance policies
 1-3     for motorists entering this state from Mexico.
 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 MOTORISTS
 1-8     ENTERING THIS STATE FROM MEXICO
 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; and
1-23                       (C)  covers liability for bodily injury, death,
1-24     and property damage arising from the use or operation of a motor
 2-1     vehicle.
 2-2           Sec. 2.  RULES. (a)  The commissioner by rule may establish a
 2-3     program to provide for the sale of short-term liability insurance
 2-4     policies to motorists entering this state at Texas-Mexico border
 2-5     crossings and to increase the availability of those policies.
 2-6           (b)  The commissioner may negotiate an agreement with any
 2-7     insurer under which the insurer will sell policies described by
 2-8     Subsection (a) of this section.
 2-9           Sec. 3.  LICENSE REQUIRED.  A person representing an insurer
2-10     in selling short-term liability insurance policies under this
2-11     article must be licensed under Subchapter A, Chapter 21, of this
2-12     code.
2-13           Sec. 4.  FORMS. An insurer selling short-term liability
2-14     insurance policies under this article must use the policy forms
2-15     adopted by the commissioner under Article 5.06 of this code unless
2-16     the insurer is exempt from using those forms.
2-17           SECTION 2. This Act takes effect September 1, 2001.