Texas House Bill HB3616

Texas 2017 - 85th Regular

Caption

Relating to regulation of persons holding a certificate of self-insurance for establishment of financial responsibility for operating a motor vehicle.

Impact

The bill mandates that self-insurers must agree to fulfill obligations similar to those of traditional insurance providers, including timely payment of judgments arising from vehicular incidents. This regulation is intended to enhance accountability among self-insurers and ensure consistent financial responsibility in the event of accidents. By clarifying the rules surrounding self-insurance, the bill might encourage more individuals and entities to consider this option, potentially altering the landscape of motor vehicle insurance in Texas.

Summary

House Bill 3616 addresses the regulation of individuals and entities seeking to hold a certificate of self-insurance for motor vehicles in Texas. It specifically aims to amend the Transportation Code to streamline the process under which a person with more than 25 registered vehicles can qualify as a self-insurer. The bill outlines the requirements for obtaining this certification, the obligations of self-insurers, and the circumstances under which a certificate may be canceled by the Texas Department of Insurance.

Contention

While the amendments aim to improve the self-insurance framework, there may be points of contention surrounding the enforcement provisions and the authority granted to the Texas Department of Insurance. Opponents might argue that the regulations could overly restrict potential self-insurers or create challenges in maintaining financial responsibility due to strict compliance expectations. Additionally, the focus on self-insurance may raise concerns among traditional insurers about competitive impacts in the motor vehicle insurance market in Texas.