79R5972 AJA-D

By:  Leibowitz                                                    H.B. No. 1461



A BILL TO BE ENTITLED

AN ACT

relating to notice to consumers regarding personal injury insurance 
protection offered in connection with personal automobile 
insurance.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 5, Insurance Code, is 
amended by adding Article 5.06-3A to read as follows:
	Art. 5.06-3A.  NOTICE OF AVAILABILITY OF PERSONAL INJURY 
PROTECTION COVERAGE.  (a)  This article applies to any insurer that 
issues a personal automobile insurance policy, including a county 
mutual insurance company, a Lloyd's plan, and a reciprocal or 
interinsurance exchange.
	(b)  An insurer must provide to each applicant for personal 
automobile insurance, as part of the application for coverage, 
notice regarding the availability of personal injury protection 
coverage.  In addition to signing the application, the applicant 
must sign the notice.
	(c)  The commissioner by rule shall prescribe the form and 
contents of the required notice.  The notice must:
		(1)  notify the applicant that the applicant may 
purchase personal injury protection coverage;
		(2)  provide a clear explanation of the coverage; and                  
		(3)  except as provided by Subsection (d), list and 
specify the cost of each $2,500 increment of coverage up to $10,000 
and each $5,000 increment of coverage in excess of $10,000 up to 
$100,000 or the maximum amount of personal injury protection 
coverage available from the insurer.
	(d)  If the insurer does not offer coverage in the increments 
specified in Subsection (c)(3), the insurer may list and specify 
the cost of each increment of coverage that the insurer offers.
	SECTION 2.  The change in law made by this Act applies to an 
application for personal automobile insurance submitted to an 
insurer on or after January 1, 2006.  An application for personal 
automobile insurance submitted before January 1, 2006, is governed 
by the law in effect immediately before that date, and that law is 
continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.