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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of damage waivers used by certain |
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vehicle rental companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 91, Business & Commerce |
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Code, is amended by adding Section 91.002 to read as follows: |
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Sec. 91.002. USE OF CERTAIN DAMAGE WAIVERS PROHIBITED. A |
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rental company may not sell or provide a damage waiver unless: |
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(1) the waiver is underwritten and delivered or issued |
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for delivery by an insurer to which Chapters 2251 and 2301, |
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Insurance Code, apply; |
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(2) the rate used to price the damage waiver is not |
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disapproved under Chapter 2251, Insurance Code; and |
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(3) the form of the damage waiver has been approved by |
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the commissioner of insurance under Chapter 2301, Insurance Code. |
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SECTION 2. Chapter 2251, Insurance Code, is amended by |
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adding Subchapter G to read as follows: |
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SUBCHAPTER G. DAMAGE WAIVERS USED BY VEHICLE RENTAL COMPANIES |
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Sec. 2251.301. DEFINITIONS. In this subchapter: |
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(1) "Damage waiver" has the meaning assigned by |
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Section 91.001, Business & Commerce Code. |
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(2) "Vehicle rental company" has the meaning assigned |
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to the term "rental company" by Section 91.001, Business & Commerce |
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Code. |
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Sec. 2251.302. RATES. (a) Notwithstanding any other |
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provision of this chapter, rates for pricing damage waivers sold or |
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provided by vehicle rental companies are governed by Subchapters B |
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and C in the same manner as rates for insurance policies described |
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by Section 2251.003(b). |
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(b) A vehicle rental company may not sell or provide a |
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damage waiver unless the rate used to price the damage waiver is |
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filed with the department by the insurer underwriting the waiver |
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and is not disapproved by the commissioner under Subchapter C. |
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Sec. 2251.303. RULES. The commissioner shall adopt rules |
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necessary to implement and enforce this subchapter. |
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SECTION 3. Chapter 2301, Insurance Code, is amended by |
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adding Subchapter C to read as follows: |
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SUBCHAPTER C. FORMS FOR DAMAGE WAIVERS USED BY VEHICLE RENTAL |
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COMPANIES |
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Sec. 2301.101. DEFINITIONS. In this subchapter: |
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(1) "Damage waiver" has the meaning assigned by |
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Section 91.001, Business & Commerce Code. |
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(2) "Vehicle rental company" has the meaning assigned |
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to the term "rental company" by Section 91.001, Business & Commerce |
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Code. |
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Sec. 2301.102. FILING AND APPROVAL OF WAIVERS. An insurer |
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may not deliver or issue for delivery in this state a damage waiver |
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for use by a vehicle rental company, and a vehicle rental company |
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may not sell or provide a damage waiver in this state, unless the |
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form of the waiver has been filed with and approved by the |
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commissioner in the same manner as an insurance policy described by |
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Section 2301.003(b). |
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Sec. 2301.103. RULES. The commissioner shall adopt rules |
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necessary to implement and enforce this chapter. |
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SECTION 4. This Act applies only to a damage waiver sold or |
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provided by a rental company subject to Chapter 91, Business & |
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Commerce Code, on or after January 1, 2012. |
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SECTION 5. This Act takes effect September 1, 2011. |