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A BILL TO BE ENTITLED
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AN ACT
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relating to the provision of notice by an insurer to the Department |
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of Public Safety that a motor vehicle liability insurance policy is |
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no longer in effect and related driver's license suspensions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 601.086, Transportation Code, is amended |
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to read as follows: |
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Sec. 601.086. [RESPONSE OF] INSURANCE COMPANY NOTICE IF |
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POLICY NOT IN EFFECT. Not later than the seventh day after the date |
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a motor vehicle liability insurance policy expires or is |
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terminated, the [An] insurance company that issued the policy [is
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notified by the department of an accident in connection with which
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an owner or operator has reported a motor vehicle liability
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insurance policy with the company] shall advise the department of |
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the date on which the [if a] policy expired or was terminated [is
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not in effect as reported]. |
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SECTION 2. Section 601.231, Transportation Code, is amended |
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by adding Subsections (c), (d), and (e) to read as follows: |
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(c) Except as provided by Subsection (d), on the 14th day |
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after the date an individual's motor vehicle liability insurance |
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policy terminates, as indicated in a notice provided to the |
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department by an insurance company under Section 601.086, the |
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individual's driver's license is suspended. |
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(d) An individual's license is not suspended under |
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Subsection (c) if the individual has provided the department with |
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evidence of financial responsibility from a source other than the |
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insurance policy referenced by the notice before the suspension |
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date prescribed by Subsection (c) or establishes that the |
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individual is not required to maintain financial responsibility. |
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(e) The department shall reinstate a license suspended |
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under Subsection (c) once the individual whose license was |
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suspended provides the department with evidence of financial |
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responsibility or establishes that the individual is not required |
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to maintain financial responsibility. |
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SECTION 3. This Act takes effect September 1, 2011. |