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A BILL TO BE ENTITLED
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AN ACT
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relating to regulation of persons holding a certificate of |
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self-insurance for establishment of financial responsibility for |
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operating a motor vehicle. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 601.124, Transportation Code, is amended |
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to read as follows: |
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Sec. 601.124. SELF-INSURANCE. (a) A person in whose name |
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more than 25 motor vehicles are registered may qualify as a |
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self-insurer by obtaining a certificate of self-insurance issued by |
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the Texas Department of Insurance [department] as provided by this |
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section. |
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(b) The Texas Department of Insurance [department] may |
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issue a certificate of self-insurance to a person if: |
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(1) the person applies for the certificate; and |
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(2) the commissioner of insurance [department] is |
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satisfied that the person has and will continue to have the ability |
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to pay judgments obtained against the person. |
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(c) The self-insurer must supplement the certificate with |
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an agreement that, for accidents occurring while the certificate is |
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in force, the self-insurer will pay the same judgments within the |
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time and in the same amounts as an insurer would be obligated to pay |
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under an owner's motor vehicle liability insurance policy issued to |
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the self-insurer if such policy were issued. The agreement may |
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include any other requirements that the commissioner of insurance |
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determines are appropriate for ensuring that the self-insurer pays |
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a legitimate claim timely. |
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(d) The Texas Department of Insurance [department] for |
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cause, including failure to pay a legitimate claim timely or |
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failure to comply with a requirement imposed by the commissioner of |
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insurance, may cancel a certificate of self-insurance after a |
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hearing. The self-insurer must receive at least five days' notice |
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of the hearing. Cause includes failure to pay a judgment before the |
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31st day after the date the judgment becomes final. |
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(e) The commissioner of insurance may adopt rules necessary |
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to implement this section. |
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SECTION 2. Section 601.124, Transportation Code, as amended |
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by this Act, applies only to a certificate of self-insurance issued |
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on or after January 1, 2018. A certificate of self-insurance issued |
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before January 1, 2018, is governed by the law applicable to the |
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certificate immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |