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.