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.