78R1484 PB-D

By:  Burnam                                                       H.B. No. 118



A BILL TO BE ENTITLED

AN ACT

relating to access to motor vehicle insurance coverage for good 
drivers; providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Article 21.49-2B, Insurance Code, 
is amended to read as follows:
	Art. 21.49-2B.  AVAILABILITY, CANCELLATION, AND NONRENEWAL 
OF CERTAIN PROPERTY AND CASUALTY POLICIES
	SECTION 2.  Article 21.49-2B, Insurance Code, is amended by 
adding Section 4A to read as follows:
	Sec. 4A.  COVERAGE FOR GOOD DRIVERS. (a)  In this section:              
		(1)  "Good driver" means an individual who:                            
			(A)  has been licensed for at least three years to 
drive the type of motor vehicle to be insured;
			(B)  during the previous three years, has not:                        
				(i)  been substantially at fault in a motor 
vehicle accident that resulted in bodily injury, death, or property 
damage;
				(ii)  been convicted of a violation of a 
traffic safety regulation that involved a moving vehicle;
				(iii)  had more than one dismissal of a 
charge under Subchapter B, Chapter 543, Transportation Code; and
				(iv)  been convicted of an offense under 
Section 49.04, Penal Code, or Section 106.041, Alcoholic Beverage 
Code; and
			(C)  has never made a fraudulent insurance claim.                     
		(2)  "Traffic safety regulation" means a law or 
ordinance of this state or a political subdivision of this state  
relating to the operation of a motor vehicle other than a regulation 
relating to the conduct of a pedestrian or the parking of a motor 
vehicle.
	(b)  Except as otherwise provided by this article, a motor 
vehicle insurer may not cancel, nonrenew, or  refuse to offer a 
policy of motor vehicle insurance to a good driver.
	(c)  At least 30 days before the date a motor vehicle insurer 
who does not offer a policy regulated by Article 5.101 of this code 
is required to renew a policy under which a good driver is an 
insured, or on application for a policy by an individual who 
qualifies as a good driver, the motor vehicle insurer shall provide 
to the named insured or applicant a notice, in the form prescribed 
by the commissioner, that includes:
		(1)  an explanation of the different types of motor 
vehicle insurance companies in this state and the manner in which 
the rates for the policies of those insurance companies are subject 
to regulation under this code;
		(2)  a list of the affiliates of that insurer who offer 
a policy regulated under Article 5.101 of this code; and
		(3)  other information the commissioner by rule 
requires.            
	(d)  A violation of this section is an unfair and deceptive 
practice in the business of insurance under Article 21.21 of this 
code.  Compliance with this section does not create an exemption 
from Article 21.21-6 of this code, as added by Chapter 415, Acts of 
the 74th Legislature, Regular Session, 1995.
	SECTION 3.  Article 21.49-2B, Insurance Code, as amended by 
this Act, applies only to an insurance policy delivered, issued for 
delivery, or renewed on or after January 1, 2004.  A policy 
delivered, issued for delivery, or renewed before January 1, 2004, 
is governed by the law as it existed immediately before the 
effective date of this Act, and that law is continued in effect for 
that purpose.
	SECTION 4.  This Act takes effect September 1, 2003.