78R7963 T

By:  Flores                                                       H.B. No. 1623



A BILL TO BE ENTITLED

AN ACT

relating to motor vehicle insurance premium discounts for certain 
individuals on active military duty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 5, Insurance Code, is 
amended by adding Article 5.03-6 to read as follows:
	Art. 5.03-6.  PREMIUM DISCOUNT FOR UNITED STATES ARMED 
FORCES PERSONNEL
	Sec. 1.  DEFINITIONS.  In this article:                                 
		(1)  "Applicant" means an individual who applies under 
this article for a discount in motor vehicle insurance premiums.
		(2)  "Insurer" means an insurance company, 
interinsurance exchange, mutual, capital stock company, fraternal 
benefit society, local mutual aid association, county mutual, 
reciprocal, association, Lloyd's plan insurer, or other entity 
writing motor vehicle insurance in this state.  The term includes an 
affiliate, as defined by Section 2, Article 21.49-1, of this code.
		(3)  "Motor vehicle" means any private passenger 
vehicle that:       
			(A)  is registered in a state; and                                    
			(B)  has a gross weight of 25,000 pounds or less.                     
	Sec. 2.  DISCOUNT AUTHORIZED; ELIGIBILITY CONDITIONS FOR 
DRIVERS.  (a)  An insurer who delivers or issues for delivery in 
this state a motor vehicle insurance policy, on receipt of written 
verification from the insured that the insured or a family member 
covered by the policy is eligible under Subsection (b) of this 
section, may grant a discount in the amount provided by Subsection 
(f) of this section in the premiums charged for the liability, 
medical payments, personal injury protection, and collision 
coverage only for the motor vehicle designated to be driven by the 
eligible individual.
	(b)  To be eligible for the discount authorized under 
Subsection (a) of this section, an applicant must:
		(1)  be licensed to drive in a state;                                  
		(2)  be on active duty in the United State armed forces 
or be the spouse of an individual on active duty in the United 
States armed forces;
		(3)  have held a driver's license for at least three 
years on the date the application is filed;
		(4)  have not, during the three years preceding the 
date of the application, been convicted of violating a law or 
ordinance of a state or a political subdivision of a state relating 
to the operation of a moving motor vehicle; and
		(5)  have not, during the three years preceding the 
date of the application, been found at fault in a motor vehicle 
accident.
	(c)  An applicant is not eligible to receive a discount under 
this article if the applicant has been convicted of an offense 
relating to the operation of a motor vehicle under:
		(1)  Chapter 49, Penal Code;                                           
		(2)  Article 6701l-1, Revised Statutes, as that statute 
existed before repeal by Chapter 900, Acts of the 73rd Legislature, 
Regular Session, 1993, or Section 19.05, Penal Code, as that 
statute existed before amendment by Chapter 900, Acts of the 73rd 
Legislature, Regular Session, 1993; or
		(3)  another state's statute similar to a statute 
described by Subdivision (1) or (2) of this subsection.
	(d)  For purposes of Subsections (b) and (c) of this section, 
an applicant is considered to have been convicted in a case if:
		(1)  a sentence is imposed; or                                         
		(2)  the applicant receives community supervision or 
analogous treatment under the law of another state.
	(e)  The commissioner by rule may establish additional 
requirements for receipt of a discount under this article.
	(f)  The commissioner by rule shall set the amount of the 
discount applicable under this article and may adopt other rules 
necessary for the implementation of this article.
	Sec. 3.  INELIGIBILITY; REVOCATION OF DISCOUNT.  (a)  An 
individual may not continue to receive a discount under this 
article after the first date on which the individual fails to 
satisfy the requirements of Section 2 of this article unless the 
individual reestablishes eligibility under this article.
	(b)  An insurer shall revoke a discount under this article if 
an applicant for the discount knowingly provides false information 
in or with the application.
	SECTION 2.  This Act applies only to a motor vehicle 
insurance policy that is delivered, issued for delivery, or renewed 
on or after January 1, 2004.  A policy that is 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 3.  This Act takes effect September 1, 2003.