1-1     By:  Lucio, et al.                                     S.B. No. 693
 1-2           (In the Senate - Filed February 13, 2001; February 15, 2001,
 1-3     read first time and referred to Committee on Business and Commerce;
 1-4     March 8, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; March 8, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 693                    By:  Lucio
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to short-term motor vehicle liability insurance policies
1-11     for non-Texas resident motorists visiting this state.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subchapter A, Chapter 5, Insurance Code, is
1-14     amended by adding Article 5.01C to read as follows:
1-15           Art. 5.01C.  SHORT-TERM LIABILITY INSURANCE FOR NON-TEXAS
1-16     RESIDENT MOTORISTS VISITING THIS STATE
1-17           Sec. 1.  DEFINITIONS.  In this article:
1-18                 (1)  "Insurer" means an insurance company,
1-19     interinsurance exchange, mutual, capital stock company, county
1-20     mutual, reciprocal association, Lloyd's plan insurer, or other
1-21     entity authorized to write motor vehicle insurance in this state.
1-22                 (2)  "Motor vehicle" means any private passenger
1-23     vehicle or utility type vehicle that has a gross weight of 25,000
1-24     pounds or less.
1-25                 (3)  "Short-term liability insurance policy" means an
1-26     insurance policy that:
1-27                       (A)  provides coverage for at least 24 hours but
1-28     not for more than one week;
1-29                       (B)  meets the requirements of Chapter 601,
1-30     Transportation Code; and
1-31                       (C)  covers liability for bodily injury, death,
1-32     and property damage arising from the use or operation of a motor
1-33     vehicle.
1-34           Sec. 2.  RULES.  (a)  The commissioner by rule may establish
1-35     a program to provide for the sale of short-term liability insurance
1-36     policies to non-Texas resident motorists visiting this state.
1-37           (b)  The commissioner may negotiate an agreement with any
1-38     insurer under which the insurer will sell policies described by
1-39     Subsection (a) of this section.
1-40           Sec. 3.  LICENSE REQUIRED.  A person representing an insurer
1-41     in selling short-term liability insurance policies under this
1-42     article must be licensed under Subchapter A, Chapter 21, of this
1-43     code.
1-44           Sec. 4.  FORMS.  An insurer selling short-term liability
1-45     insurance policies under this article must use the policy forms
1-46     adopted by the commissioner under Article 5.06 of this code unless
1-47     the insurer is exempt from using those forms.
1-48           SECTION 2.  This Act takes effect September 1, 2001.
1-49                                  * * * * *