79R14370 DLF-F
By: Thompson H.B. No. 3300
Substitute the following for H.B. No. 3300:
By: Thompson C.S.H.B. No. 3300
A BILL TO BE ENTITLED
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. 556.106. 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.