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 * * * * *