78R2290 DWS-F
By: Smithee H.B. No. 1809
A BILL TO BE ENTITLED
AN ACT
relating to requirements regarding motor vehicle insurance and
proof of financial responsibility; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. FINANCIAL RESPONSIBILITY REQUIREMENTS
SECTION 1.01. Chapter 601, Transportation Code, is amended
by adding Subchapter N to read as follows:
SUBCHAPTER N. VERIFICATION OF COMPLIANCE WITH AND ENFORCEMENT
OF FINANCIAL RESPONSIBILITY REQUIREMENTS
Sec. 601.501. DEFINITION. In this subchapter,
"verification date" means the date on which the Texas Department of
Transportation mails a written request to an owner of a motor
vehicle requiring the owner to state whether the owner has
established financial responsibility in accordance with Section
601.051(a).
Sec. 601.502. VERIFICATION OF ESTABLISHMENT OF FINANCIAL
RESPONSIBILITY THROUGH RANDOM SAMPLING. (a) The Texas Department
of Transportation or an agent of that department shall randomly
select samples of registrations of motor vehicles subject to this
chapter, and may select samples of owners of motor vehicles subject
to this chapter, to verify whether an owner who is selected or whose
motor vehicle is selected has established financial responsibility
in accordance with Section 601.051(a). The Department of Public
Safety shall provide the Texas Department of Transportation access
to any information that will allow the Texas Department of
Transportation to comply with this subsection.
(b) A sample selected under this section may not be
classified on the basis of the owner's race, color, religion, sex,
national origin, age, marital status, physical or mental
disability, economic status, or geographic location.
(c) In addition to the general random sampling of motor
vehicle registrations, the Texas Department of Transportation may
randomly select other persons who own a registered motor vehicle to
verify that the person has established financial responsibility,
including a person:
(1) who, during the four-year period preceding the
date of selection, has been convicted of a violation of Section
601.191, 601.195, 601.196, as it existed before repeal, or 601.508,
including a violation that occurred while the person was operating
a motor vehicle owned by another person;
(2) whose motor vehicle registration has been the
subject of a deferred suspension under Section 601.505(e) during
the four-year period preceding the date of selection; or
(3) whose driver's license or motor vehicle
registration has been suspended during the four-year period
preceding the date of selection.
(d) The Texas Department of Transportation shall send to the
owner of a randomly selected motor vehicle, or to a randomly
selected motor vehicle owner, a request for information about the
motor vehicle and the owner's method of establishing financial
responsibility. The request must require the owner to state
whether the owner has, as of the verification date, established
financial responsibility in accordance with Section 601.051(a).
(e) The Texas Department of Transportation:
(1) shall adopt rules as necessary to implement this
subchapter; and
(2) by rule shall:
(A) establish the frequency of sample selection;
and
(B) prescribe:
(i) the methods employed for the random
selection of samples and the procedures necessary for
implementation of the verification process, including the method of
sending the verification request, which may include certified mail,
return receipt requested;
(ii) the form for verification of financial
responsibility; and
(iii) the information to be requested in
the prescribed form.
(f) The Texas Department of Transportation may require the
information provided by an owner to include a statement by the owner
that the owner had, as of the verification date, established
financial responsibility:
(1) through liability insurance under Subchapter D,
including:
(A) the name and address of the insurer;
(B) the number of the insurance policy; and
(C) the expiration date of the insurance
coverage;
(2) by filing a surety bond with the Department of
Public Safety under Section 601.121, including:
(A) the name and address of the company issuing
the bond;
(B) the identification number of the bond; and
(C) the expiration date of the bond;
(3) by depositing cash or securities with the
comptroller under Section 601.122, including a copy of the
certificate issued by the comptroller showing compliance;
(4) by depositing cash or a cashier's check with the
county judge of the county in which the motor vehicle is registered
under Section 601.123, including a copy of the certificate issued
by the county judge showing compliance; or
(5) through self-insurance under Section 601.124,
including a copy of the certificate of self-insurance issued by the
Department of Public Safety.
(g) Not later than the 30th day after the verification date,
the owner to whom the notice is sent shall furnish the requested
information to the Texas Department of Transportation in the form
prescribed by that department, accompanied by the owner's signed
affirmation that the information is true and correct.
(h) An owner whose response indicates that the owner had not
established financial responsibility in accordance with Section
601.051(a), or who fails to respond to the request, is subject to
suspension of the owner's motor vehicle registration in the manner
provided by Section 601.505.
(i) If the owner responds to the request for information by
asserting that the owner had, as of the verification date,
established financial responsibility in accordance with a method
authorized by Section 601.051(a), the Texas Department of
Transportation may conduct a verification investigation as
provided by Section 601.503.
Sec. 601.503. VERIFICATION INVESTIGATION. (a) To verify a
response received from an owner under Section 601.502, the Texas
Department of Transportation or an agent of that department may
furnish necessary information to the insurer, surety, or officer
named in the response. Not later than the 30th day after the date of
receipt of the information, the insurer, surety, or officer shall
inform the Texas Department of Transportation whether, as of the
verification date, financial responsibility had been established
for the affected motor vehicle in accordance with Section
601.051(a). An insurer that does not comply with this subsection is
subject to an administrative penalty under Chapter 84, Insurance
Code.
(b) If the response received from an owner under Section
601.502 states that financial responsibility has been established
through self-insurance, the Texas Department of Transportation
shall examine the records of the Department of Public Safety to
verify that a certificate of self-insurance has been issued in
accordance with Section 601.124.
Sec. 601.504. WARNING NOTICE. If an owner responds under
Section 601.502 that the owner has not established financial
responsibility or the owner fails to respond in a timely manner, or
if the Texas Department of Transportation otherwise determines that
an owner has registered or maintained the registration of a motor
vehicle without establishing financial responsibility in
accordance with Section 601.051(a), the Texas Department of
Transportation by certified mail shall issue to the owner a warning
notice that informs the owner that the owner is not in compliance
with Section 601.051(a) and that the owner's motor vehicle
registration will be suspended on the 45th day after the date on
which the warning notice is mailed unless the owner, not later than
the 30th day after the date of the mailing of the warning notice,
establishes financial responsibility in the manner prescribed by
Section 601.505(e) or mails to the Texas Department of
Transportation a written request for a hearing.
Sec. 601.505. SUSPENSION; REINSTATEMENT; EXCEPTION.
(a) Unless the owner requests a hearing under Subsection (b), the
Texas Department of Transportation shall suspend the registration
of an owner to whom a warning notice is issued under Section 601.504
on the 45th day after the date of the mailing of the notice.
(b) An owner who receives a warning notice under Section
601.504 may request a hearing on or before the 30th day after the
date of the mailing of the notice. The Texas Department of
Transportation shall adopt rules governing a hearing under this
subsection. The Texas Department of Transportation shall suspend
the registration of an owner who requests a hearing if on or before
the date of the hearing the owner does not present proof of
financial responsibility that:
(1) complies with Section 601.051(a); and
(2) was in effect on the verification date.
(c) If the Texas Department of Transportation suspends an
owner's motor vehicle registration under this section, the Texas
Department of Transportation shall notify the owner of the
suspension by certified mail.
(d) For a first violation, the Texas Department of
Transportation shall terminate the suspension on payment by the
owner of a $100 reinstatement fee and submission of proof of
financial responsibility in the manner prescribed by the Texas
Department of Transportation. For a second or subsequent violation
during the four-year period that follows the first violation or for
a violation of Section 601.507, the Texas Department of
Transportation shall terminate the suspension on the 120th day
after the effective date of the suspension on payment by the owner
of a $200 reinstatement fee and submission of proof of financial
responsibility in a manner prescribed by the Texas Department of
Transportation.
(e) For a first violation, the Texas Department of
Transportation shall defer the suspension if the owner submits to
the Texas Department of Transportation, not later than the 30th day
after the date of the mailing of the warning notice under Section
601.504 or on or before the date of a hearing requested by the owner
under Subsection (b), proof of financial responsibility evidenced
by a motor vehicle insurance policy that complies with Subchapter
D, the premiums for which have been prepaid for a term of at least
six months. On the earlier of the 180th day after the date of the
mailing of the warning notice or the expiration date of the
insurance policy described by this subsection, the owner shall
submit to the Texas Department of Transportation evidence of
renewal of the motor vehicle insurance policy, the premiums for
which have been prepaid for a term of at least six months. If the
owner fails to submit the required evidence of renewal, the Texas
Department of Transportation shall impose the suspension and
reinstatement fee.
(f) Notwithstanding any other provision of this subchapter,
the Texas Department of Transportation may reinstate the suspended
motor vehicle registration of an owner who:
(1) received a request for information under Section
601.502; and
(2) presents proof of financial responsibility that:
(A) complies with Section 601.051(a); and
(B) was in effect on the verification date.
(g) An owner whose vehicle registration has been suspended
under this section may not:
(1) transfer the registration unless the transfer is
authorized under Subsection (h); or
(2) register in another name the motor vehicle to
which the registration applies.
(h) The Texas Department of Transportation may authorize
the transfer of a vehicle registration if that department is
satisfied that the transfer is proposed in good faith and not to
defeat the purposes of this subchapter.
(i) Subsection (g) does not affect the rights of a
conditional vendor or lessor of, or a person with a security
interest in, a motor vehicle owned by a person whose vehicle
registration has been suspended under this section if the vendor,
lessor, or secured party is not the registered owner of the vehicle.
Sec. 601.506. SUBMISSION OF FALSE PROOF. If the Texas
Department of Transportation determines that the proof of financial
responsibility submitted by a motor vehicle owner under Section
601.502 is false, and that the owner had knowledge that the proof of
financial responsibility was false, the Texas Department of
Transportation shall suspend the owner's motor vehicle
registration. The Texas Department of Transportation shall
terminate the suspension on or after the 180th day after the
effective date of the suspension on payment by the owner of a $500
reinstatement fee and submission of proof of financial
responsibility as prescribed by the Texas Department of
Transportation.
Sec. 601.507. OPERATION OF MOTOR VEHICLE WHILE REGISTRATION
SUSPENDED FOR FAILURE TO ESTABLISH FINANCIAL RESPONSIBILITY;
OFFENSE. (a) A person who operates a motor vehicle while the
registration of the motor vehicle is suspended under this
subchapter commits an offense.
(b) An offense under this section is punishable by a fine of
not less than $1,000 or more than $2,000.
(c) It is a defense to prosecution under this section that
the person charged with an offense produces in court satisfactory
evidence that, at the time of the alleged offense, the owner or
operator had established financial responsibility in accordance
with Section 601.051(a).
Sec. 601.508. DISPLAY OF FALSE PROOF OF FINANCIAL
RESPONSIBILITY; OFFENSE. (a) A person commits an offense if the
person provides evidence of financial responsibility to a peace
officer, as defined by Article 2.12, Code of Criminal Procedure,
court, or officer of the court knowing that financial
responsibility has not been established as required under Section
601.051(a) or that the evidence of financial responsibility is
illegally altered, counterfeit, or otherwise invalid.
(b) If a peace officer issues a citation to a motor vehicle
operator for displaying invalid evidence of financial
responsibility, the officer shall confiscate the invalid evidence
of financial responsibility for presentation in court.
(c) An offense under this section is punishable by a fine of
not less than $500 or more than $750.
Sec. 601.509. DISPOSITION OF FEES. From the reinstatement
fees collected under this subchapter, the Texas Department of
Transportation shall recover its costs in implementing and
administering the verification program under this subchapter. The
Texas Department of Transportation shall deposit any amounts
collected that exceed the administrative costs of that department
under this subchapter to the credit of the state highway fund.
Sec. 601.510. USE OF AGENTS. The Texas Department of
Transportation may submit requests for proposals for contracts with
private vendors to perform the random sampling and the verification
investigations required under this subchapter as an agent of that
department. The Texas Department of Transportation may enter into
contracts as necessary to implement the use of agents.
SECTION 1.02. Section 601.051, Transportation Code, is
amended to read as follows:
Sec. 601.051. REQUIREMENT OF FINANCIAL
RESPONSIBILITY. (a) A person may not operate, register, or
maintain registration of a motor vehicle in this state unless
financial responsibility is established for that vehicle through:
(1) a motor vehicle liability insurance policy that
complies with Subchapter D;
(2) a surety bond filed under Section 601.121;
(3) a deposit under Section 601.122;
(4) a deposit under Section 601.123; or
(5) self-insurance under Section 601.124.
(b) An owner of a motor vehicle may not permit another
person to operate the motor vehicle in this state unless financial
responsibility is established for that vehicle and evidenced
through a method described by Subsection (a).
SECTION 1.03. Section 601.191, Transportation Code, is
amended to read as follows:
Sec. 601.191. OPERATION OF MOTOR VEHICLE IN VIOLATION OF
FINANCIAL RESPONSIBILITY REQUIREMENTS [MOTOR VEHICLE LIABILITY
INSURANCE REQUIREMENT]; OFFENSE. (a) A person commits an offense
if the person operates a motor vehicle or permits another person to
operate a motor vehicle in violation of Section 601.051.
(b) Except as provided by Subsection [Subsections (c) and]
(d), an offense under this section is a misdemeanor punishable by a
fine of not less than $500 [$175] or more than $1,000 [$350].
(c) It is a defense to prosecution under this section that
the person charged with an offense produces in court satisfactory
evidence that, at the time of the alleged offense, the owner or
operator had established financial responsibility in accordance
with Section 601.051(a). [If a person has been previously
convicted of an offense under this section, an offense under this
section is a misdemeanor punishable by a fine of not less than $350
or more than $1,000.]
(d) If the court determines that a person who has not been
previously convicted of an offense under this section is
economically unable to pay the fine, the court may reduce the fine
to less than $500 [$175].
SECTION 1.04. Section 601.195, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) It is a defense to prosecution under this section that
the person charged with an offense produces in court satisfactory
evidence that, at the time of the alleged offense, the owner or
operator had established financial responsibility in accordance
with Section 601.051(a).
SECTION 1.05. In performing sample selection under Section
601.502, Transportation Code, as added by this Act, the Texas
Department of Transportation shall ensure that at least 500,000
samples are selected on or before September 1, 2005.
SECTION 1.06. (a) In cooperation with the Texas Department
of Insurance and the Department of Public Safety of the State of
Texas, the Texas Department of Transportation shall conduct an
evaluation of the implementation and operation of the verification
program adopted under Subchapter N, Chapter 601, Transportation
Code, as added by this Act, and of the effectiveness of the
verification program in increasing compliance with the financial
responsibility requirements established under Subchapter C,
Chapter 601, Transportation Code. The evaluation must include:
(1) a computation, by year, of the number of persons
determined by the Texas Department of Transportation through the
application of the verification program to be driving without
compliance with the financial responsibility requirements
established under Subchapter C, Chapter 601, Transportation Code;
and
(2) the annual effect of the program, as determined by
the Texas Department of Insurance, on the rate for uninsured
motorist insurance coverage under Article 5.06-1, Insurance Code.
(b) The Texas Department of Transportation shall enter into
contracts, memoranda of understanding, or interagency agreements
as necessary to implement this section.
(c) The Texas Department of Transportation shall report the
results of the evaluation conducted under this section to the
legislature not later than February 1, 2011. The department shall
provide written copies of the report to the governor, the
lieutenant governor, and the speaker of the house of
representatives.
ARTICLE 2. UNINSURED AND UNDERINSURED MOTORIST COVERAGE
SECTION 2.01. Article 5.06-1, Insurance Code, is amended to
read as follows:
Art. 5.06-1. UNINSURED OR UNDERINSURED MOTORIST COVERAGE.
(a) [(1)] No automobile liability insurance, [(]including
insurance issued through the Texas Automobile Insurance Plan
Association [pursuant to an Assigned Risk Plan established under
authority of Section 35 of the Texas Motor Vehicle
Safety-Responsibility Act)], covering liability arising out of the
ownership, maintenance, or use of any motor vehicle shall be
delivered or issued for delivery in this state unless coverage is
provided therein or supplemental thereto, [in at least the limits
described in the Texas Motor Vehicle Safety-Responsibility Act,]
under provisions prescribed by the commissioner [Board], for the
protection of persons insured thereunder who are legally entitled
to recover damages from owners or operators of uninsured or
underinsured motor vehicles because of bodily injury, sickness, or
disease, including death, or property damage resulting therefrom.
The coverages required under this Article shall not be applicable
where any insured named in the policy shall reject the coverage in
writing; provided that unless the named insured thereafter
requests such coverage in writing, such coverage need not be
provided in or supplemental to a renewal policy where the named
insured has rejected the coverage in connection with a policy
previously issued to the named insured [him] by the same insurer or
by an affiliated insurer.
(b) [(2)] For the purpose of these coverages:
(1) "Exemplary damages" has the meaning assigned by
Section 41.001, Civil Practice and Remedies Code.
(2) "Noneconomic damages" means damages other than
compensatory damages for pecuniary loss. The term includes damages
for physical pain and mental anguish, loss of consortium,
disfigurement, physical impairment, or loss of companionship and
society. The term does not include exemplary damages.
(3) "Uninsured [(a) the term "uninsured] motor
vehicle" shall, subject to the terms and conditions of such
coverage, be deemed to include an insured motor vehicle where the
liability insurer thereof is unable to make payment with respect to
the legal liability of its insured within the limits specified
therein because of insolvency.
(4) "Underinsured [(b) The term "underinsured] motor
vehicle" means an insured motor vehicle on which there is valid and
collectible liability insurance coverage with limits of liability
for the owner or operator which were originally lower than, or have
been reduced by payment of claims arising from the same accident to,
an amount less than the limit of liability stated in the
underinsured coverage of the insured's policy.
(c) The commissioner [Board] may, in the policy forms
adopted under Article 5.06 of this code, define "uninsured motor
vehicle" to exclude certain motor vehicles whose operators are in
fact uninsured.
(d) The portion of a policy form adopted under Article 5.06
of this code to provide coverage under this article shall include
provisions that, regardless of the number of persons insured,
policies or bonds applicable, vehicles involved, or claims made,
the total aggregate limit of liability to any one person who
sustains bodily injury or property damage as the result of any one
occurrence shall not exceed the limit of liability for these
coverages as stated in the policy and the total aggregate limit of
liability to all claimants, if more than one, shall not exceed the
total limit of liability per occurrence as stated in the policy; and
shall provide for the exclusion of the recovery of damages for
bodily injury or property damage or both resulting from the
intentional acts of the insured. The portion of a policy form
adopted under Article 5.06 of this code to provide coverage under
this article shall require that in order for the insured to recover
under the uninsured motorist coverages where the owner or operator
of any motor vehicle which causes bodily injury or property damage
to the insured is unknown, actual physical contact must have
occurred between the motor vehicle owned or operated by such
unknown person and the person or property of the insured.
(e) Except as provided by Subsection (f) of this article,
the [(3) The] limits of liability for bodily injury, sickness, or
disease, including death, shall be offered to the insured in
amounts not less than those prescribed in Chapter 601,
Transportation Code, [the Texas Motor Vehicle
Safety-Responsibility Act] and such higher available limits as may
be desired by the insured, but not greater than the limits of
liability specified in the bodily injury liability provisions of
the insured's policy.
(f) The named insured may elect to waive coverage under this
article for recovery of noneconomic and exemplary damages resulting
from bodily injury, sickness, or disease, including death. If an
insured elects to waive coverage under this subsection, Subsection
(e) of this article does not apply to the limits of liability that
are applicable to the coverage provided under the policy issued to
the insured for damages resulting from bodily injury, sickness, or
disease, including death. The commissioner by rule may adopt
minimum limits of liability applicable to those damages. Waiver of
coverage under this subsection does not affect the insured's right
to bring an action for noneconomic and exemplary damages against a
responsible party. A written rejection of coverage for noneconomic
and exemplary damages is not effective unless the insurer provides
the insured with a written notice, acknowledged in writing by the
insured at the time of the rejection, disclosing the amount of
potential coverage that is available, the types of damages that
would be covered, and the amount of premium saved because the
coverage is rejected.
(g) [(4)(a)] Coverage for property damage shall be offered
to the insured in amounts not less than those prescribed in Chapter
601, Transportation Code, [the Texas Motor Vehicle
Safety-Responsibility Act] and such higher available limits as may
be desired by the insured, but not greater than limits of liability
specified in the property damage liability provisions of the
insured's policy, subject to a deductible amount of $250.
(h) [(b)] If the insured has collision coverage and
uninsured or underinsured property damage liability coverage, the
insured may recover under the policy coverage chosen by the
insured. In the event neither coverage is sufficient alone to cover
all damage resulting from a single occurrence, the insured may
recover under both coverages. When recovering under both
coverages, the insured shall designate one coverage as the primary
coverage and pay the deductible applicable to that coverage. The
primary coverage must be exhausted before any recovery is made
under the secondary coverage. If both coverages are utilized in the
payment of damages from a single occurrence, the insured shall not
be required to pay the deductible applicable to the secondary
coverage when the amount of the deductible otherwise applicable to
the secondary coverage is the same as or less than the amount of the
deductible applicable to the primary coverage. If both coverages
are utilized in the payment of damages from a single occurrence and
the amount of the deductible otherwise applicable to the secondary
coverage is greater than the amount of the deductible applicable to
the primary coverage, the insured shall be required to pay in
respect of the secondary coverage only the difference between the
amount of the two deductibles. In no event shall the insured
recover under both coverages more than the actual damages suffered.
(i) [(5)] The underinsured motorist coverage shall provide
for payment to the insured of all sums which the insured [he] shall
be legally entitled to recover as damages from owners or operators
of underinsured motor vehicles because of bodily injury or property
damage in an amount up to the limit specified in the policy, reduced
by the amount recovered or recoverable from the insurer of the
underinsured motor vehicle. If the named insured has waived
coverage under Subsection (f) of this article for recovery of
noneconomic and exemplary damages, the amount paid to the insured
may not include any amount attributable to noneconomic and
exemplary damages.
(j) [(6)] In the event of payment to any person under any
coverage required by this article [Section] and subject to the
terms and conditions of such coverage, the insurer making such
payment shall, to the extent thereof, be entitled to the proceeds of
any settlement or judgment resulting from the exercise of any
rights of recovery of such person against any person or
organization legally responsible for the bodily injury, sickness or
disease, or death for which such payment is made, including the
proceeds recoverable from the assets of the insolvent insurer;
provided, however, whenever an insurer shall make payment under a
policy of insurance issued pursuant to this article [Act], which
payment is occasioned by the insolvency of an insurer, the insured
of said insolvent insurer shall be given credit in any judgment
obtained against the insured [him], with respect to the insured's
[his] legal liability for such damages, to the extent of such
payment, but, subject to Section 12 of Article 21.28-C of this code,
such paying insurer shall have the right to proceed directly
against the insolvent insurer or its receiver, and in pursuance of
such right such paying insurer shall possess any rights which the
insured of the insolvent company might otherwise have had if the
insured of the insolvent insurer had made the payment.
(k) [(7)] If a dispute exists as to whether a motor vehicle
is uninsured, the burden of proof as to that issue shall be upon the
insurer.
(l) [(8)] Notwithstanding Section 15.032, Civil Practice
and Remedies Code, an action against an insurer in relation to the
coverage provided under this article, including an action to
enforce that coverage, may be brought only:
(1) [(a)] in the county in which the policyholder or
beneficiary instituting the suit resided at the time of the
accident; or
(2) [(b)] in the county in which the accident
involving the uninsured or underinsured motor vehicle occurred.
ARTICLE 3. PROOF OF INSURANCE CARDS
SECTION 3.01. Subchapter A, Chapter 5, Insurance Code, is
amended by adding Article 5.06-7 to read as follows:
Art. 5.06-7. FORM AND APPEARANCE OF PROOF OF MOTOR VEHICLE
LIABILITY INSURANCE. (a) The commissioner shall prescribe by rule
a standard appearance and form for a card issued by an insurer as
proof of motor vehicle liability insurance prescribed by Section
601.081, Transportation Code.
(b) In prescribing the appearance of a proof of motor
vehicle liability insurance card under Subsection (a) of this
article, the commissioner shall require an appearance that is:
(1) difficult to alter, duplicate, or counterfeit; and
(2) not cost-prohibitive for consumers.
ARTICLE 4. REPEALER
SECTION 4.01. Section 601.193, Transportation Code, is
repealed.
ARTICLE 5. TRANSITION; EFFECTIVE DATE
SECTION 5.01. The change in law made by this Act to Chapter
601, Transportation Code, applies only to punishment for an offense
committed on or after the effective date of this Act. For purposes
of this section, an offense is committed before the effective date
of this Act if any element of the offense occurs before that date.
SECTION 5.02. Article 5.06-1, Insurance Code, as amended by
this Act, applies only to a motor vehicle liability 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 5.03. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2003.
(b) Article 1 of this Act takes effect January 1, 2005.