By:  Averitt                                                      S.B. No. 1431


A BILL TO BE ENTITLED

AN ACT

relating to insurance requirements for commercial motor vehicles.             
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 643.101, Transportation Code, is amended 
by adding Subsection (d) to read as follows:
	(d)  Any insurance required for a commercial motor vehicle 
must be obtained from a reliable insurance company authorized to do 
business in this state unless state law permits the vehicle to be 
self-insured.  An insurance company is deemed reliable under this 
subsection if it has 100 percent reinsurance for the portion of 
insurance required for a commercial motor vehicle in excess of 10 
percent of the insurance company's capital and surplus and if 
credit is allowed for such reinsurance under Article 5.75–1, 
Insurance Code.
	SECTION 2.  This Act takes effect September 1, 2003.