H.B. No. 3300




AN ACT

relating to reinstatement of a personal automobile insurance 
policy.        
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading of Section 551.106, Insurance Code, 
is amended to read as follows:
	Sec. 551.106.  RENEWAL AND REINSTATEMENT OF PERSONAL 
AUTOMOBILE INSURANCE POLICIES.
	SECTION 2.  Section 551.106, Insurance Code, is amended by 
adding Subsection (c) to read as follows:
	(c)  An insurer may reinstate a personal automobile 
insurance policy canceled for nonpayment of premium if the premium 
owed is paid not later than the 60th day after date of cancellation. 
Coverage under the policy lapses on the date of cancellation and is 
not again effective until the date the payment is received by the 
insurer.  Premium is not owed for any period in which the policy is 
not in effect.
	SECTION 3.  Section (1), Article 5.06-1, Insurance Code, is 
amended to read as follows:
	(1)  No automobile liability insurance (including insurance 
issued pursuant to an Assigned Risk Plan established under 
authority of Section 35 of the Texas Motor Vehicle 
Safety-Responsibility Act), covering liability arising out of the 
ownership, maintenance, or use of any motor vehicle shall be 
delivered or issued for delivery in this state unless coverage is 
provided therein or supplemental thereto, in at least the limits 
described in the Texas Motor Vehicle Safety-Responsibility Act, 
under provisions prescribed by the Board, for the protection of 
persons insured thereunder who are legally entitled to recover 
damages from owners or operators of uninsured or underinsured motor 
vehicles because of bodily injury, sickness, or disease, including 
death, or property damage resulting therefrom.  The coverages 
required under this Article shall not be applicable where any 
insured named in the policy shall reject the coverage in writing; 
provided that unless the named insured thereafter requests such 
coverage in writing, such coverage need not be provided in or 
supplemental to a reinstated policy or renewal policy where the 
named insured has rejected the coverage in connection with that 
policy or a policy previously issued to him by the same insurer or 
by an affiliated insurer.
	SECTION 4.  Article 5.06-3(a), Insurance Code, is amended to 
read as follows:
	(a)  No automobile liability insurance policy, including 
insurance issued pursuant to an assigned risk plan established 
under authority of Section 35 of the Texas Motor Vehicle 
Safety-Responsibility Act, covering liability arising out of the 
ownership, maintenance, or use of any motor vehicle shall be 
delivered or issued for delivery in this state unless personal 
injury protection coverage is provided therein or supplemental 
thereto.  The coverage required by this article shall not be 
applicable if any insured named in the policy shall reject the 
coverage in writing; provided, unless the named insured thereafter 
requests such coverage in writing, such coverage need not be 
provided in or supplemental to a reinstated policy or renewal 
policy if the named insured has rejected the coverage in connection 
with that policy or a policy previously issued to him by the same 
insurer or by an affiliated insurer.
	SECTION 5.  This Act applies only to an insurance policy that 
is delivered, issued for delivery, or renewed on or after the 
effective date of this Act. A policy that is delivered, issued for 
delivery, or renewed before the effective date of this Act is 
governed by the law as it existed immediately before that, and that 
law is continued in effect for this purpose.
	SECTION 6.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 3300 was passed by the House on May 
13, 2005, by the following vote:  Yeas 142, Nays 0, 2 present, not 
voting.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 3300 was passed by the Senate on May 
25, 2005, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor