78R4863 KCR-D
By: Taylor H.B. No. 2739
A BILL TO BE ENTITLED
AN ACT
relating to authorizing premium discounts for certain motor vehicle
insurance policies.
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 CERTAIN SAFETY BELT
WARNING SYSTEMS
Sec. 1. DEFINITIONS. In this article:
(1) "Insurer" means an insurance company, reciprocal
or interinsurance exchange, mutual, capital stock company,
fraternal benefit society, local mutual aid association, county
mutual insurance company, association, Lloyd's plan, or other
entity writing motor vehicle insurance in this state. The term
includes a company affiliated with an insurer.
(2) "Motor vehicle" means any private passenger or
commercial motor vehicle that:
(A) is registered in this state; and
(B) has a gross weight of 25,000 pounds or less.
(3) "Safety belt warning system" means any device
installed in a motor vehicle that:
(A) is activated when a passenger in the motor
vehicle is not secured by the passenger's safety belt;
(B) cannot be deactivated unless all passengers
in the motor vehicle are secured by a safety belt; and
(C) warns the driver of the motor vehicle that a
passenger in the vehicle is not secured by the passenger's safety
belt by:
(i) making a distinct audible sound or
noise;
(ii) preventing the motor vehicle from
starting; or
(iii) disabling an electronic component of
the motor vehicle.
Sec. 2. DISCOUNT AUTHORIZED. (a) An insurer who delivers
or issues for delivery in this state a motor vehicle insurance
policy may grant a discount in the amount provided by Subsection (c)
in the premiums charged for the liability, medical payments, and
personal injury protection coverage for a motor vehicle equipped
with a safety belt warning system.
(b) To be eligible for a discount under this article, an
applicant for a discount must file with the insurer a written
document that presents evidence satisfactory to establish that the
motor vehicle is equipped with a safety belt warning system.
Acceptable documents for filing include:
(1) a copy of that section of the owner's manual for
the motor vehicle that describes the safety belt warning system and
how the safety belt warning system operates;
(2) a copy of the owner's manual for a safety belt
warning system purchased separately from the motor vehicle
accompanied by a receipt or invoice reflecting installation of the
safety belt warning system; or
(3) any other written document that establishes that
the motor vehicle is equipped with a safety belt warning system.
(c) The commissioner by rule shall set the amount of the
discounts applicable under this article and may adopt other rules
necessary for the implementation of this article.
Sec. 3. INELIGIBILITY; REVOCATION OF DISCOUNT. (a) A
person may not continue to receive a discount under this article
after the person is convicted of an offense under Section 545.412 or
545.413, Transportation Code.
(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 for the discount.
SECTION 2. This Act takes effect September 1, 2003, and
applies only to a motor vehicle insurance policy that is delivered,
issued for delivery, or renewed after January 1, 2004. A motor
vehicle insurance 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 the former
law is continued in effect for that purpose.