By: Thompson H.B. No. 3300
A BILL TO BE ENTITLED
AN ACT
relating to certain coverages under an automobile insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 renewal policy where the named insured has
rejected the coverage in connection with a policy previously issued
to him by the same insurer or by an affiliated insurer. For
purposes of this coverage, reinstatement of a cancelled policy with
a lapse of coverage of thirty (30) days or less will be deemed to be
a renewal of the policy.
SECTION 2. Section (A), Article 5.06-3, 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 renewal policy if the named insured
has rejected the coverage in connection with a policy previously
issued to him by the same insurer or by an affiliated insurer. For
purposes of this coverage, reinstatement of a cancelled policy with
a lapse of coverage of thirty (30) days or less will be deemed to be
a renewal of the policy.
SECTION 3. The changes in law made by this Act apply only to
an insurance policy that is delivered, issued for delivery, or
renewed on or after the effective date of this Act. An insurance
policy that is delivered, issued for delivery, or renewed before
the effective date of this Act is covered by the law in effect at the
time the policy was delivered, issued for delivery, or renewed, and
that law is continued in effect for that purpose.
SECTION 4. 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.