Texas 2009 - 81st Regular

Texas House Bill HB1327 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R6482 KCR-F
2	2	By: McClendon H.B. No. 1327
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a mile-based rating plan for personal automobile
8	8	insurance.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 2251, Insurance Code, is amended by
11	11	adding Subchapter G to read as follows:
12	12	SUBCHAPTER G. MILE-BASED AUTOMOBILE INSURANCE RATING PLANS
13	13	Sec. 2251.301. DEFINITION. In this subchapter, "mile-based
14	14	automobile insurance" means personal automobile insurance that is
15	15	rated using a rating plan for which a unit of exposure is one mile
16	16	driven by the insured.
17	17	Sec. 2251.302. APPLICABILITY OF OTHER LAW. (a)
18	18	Subchapters A, B, and C apply to mile-based automobile insurance
19	19	written under this subchapter.
20	20	(b) An insurer shall make separate filings under Subchapter
21	21	B for mile-based automobile insurance written under this subchapter
22	22	and other automobile insurance written in this state.
23	23	Sec. 2251.303. MILE-BASED AUTOMOBILE INSURANCE AUTHORIZED.
24	24	(a) An insurer authorized to write personal automobile insurance
25	25	in this state may write mile-based automobile insurance in this
26	26	state.
27	27	(b) An insurer that writes mile-based automobile insurance
28	28	in this state must also write personal automobile insurance in this
29	29	state using a rating plan for which a unit of exposure is a unit
30	30	other than the number of miles driven by the insured and that
31	31	complies with this chapter.
32	32	(c) An insurer may require a person purchasing personal
33	33	automobile insurance to use the same type of rating plan for all
34	34	vehicles covered under the person's personal automobile insurance
35	35	policy.
36	36	Sec. 2251.304. COMMISSIONER POWERS AND DUTIES; RULES.
37	37	(a) The commissioner shall:
38	38	(1) compile information regarding:
39	39	(A) the number of insurers writing mile-based
40	40	automobile insurance in this state;
41	41	(B) the geographic areas of this state in which
42	42	mile-based automobile insurance is written; and
43	43	(C) the premium rates for mile-based automobile
44	44	insurance compared to personal automobile insurance rated on
45	45	another basis; and
46	46	(2) analyze the effect of mile-based rating on:
47	47	(A) premium rates offered for automobile
48	48	insurance in this state; and
49	49	(B) the number of uninsured motorists in this
50	50	state.
51	51	(b) The commissioner shall adopt rules as necessary or
52	52	appropriate to govern the use of mile-based automobile insurance
53	53	under this subchapter, including rules regarding:
54	54	(1) prepayment arrangements;
55	55	(2) proof of financial responsibility;
56	56	(3) auditing of the odometer of a vehicle for the
57	57	purpose of determining coverage and number of miles driven; and
58	58	(4) policy forms.
59	59	SECTION 2. Section 1952.054, Insurance Code, is amended to
60	60	read as follows:
61	61	Sec. 1952.054. REQUIRED DISCLOSURES REGARDING SHORT-TERM
62	62	POLICIES. (a) An insurance policy or other document evidencing
63	63	proof of purchase of a personal automobile insurance policy, other
64	64	than a mile-based automobile insurance policy written under
65	65	Subchapter G, Chapter 2251, that is written for a term of less than
66	66	30 days or a mile-based automobile insurance policy written under
67	67	Subchapter G, Chapter 2251, that is written for fewer than 1,000
68	68	miles may not be used to obtain an original or renewal driver's
69	69	license, an automobile registration or license plates, or a motor
70	70	vehicle inspection certificate. An insurance policy or other
71	71	document described by this subsection must contain the following
72	72	statement:
73	73	TEXAS LAW PROHIBITS USE OF THIS DOCUMENT TO OBTAIN A
74	74	MOTOR VEHICLE INSPECTION CERTIFICATE, AN ORIGINAL OR
75	75	RENEWAL DRIVER'S LICENSE, OR AN AUTOMOBILE
76	76	REGISTRATION OR LICENSE PLATES.
77	77	(b) Before accepting any premium or fee for a personal
78	78	automobile insurance policy or binder for a term of less than 30
79	79	days, other than a policy or binder for a mile-based automobile
80	80	insurance policy written under Subchapter G, Chapter 2251, or any
81	81	premium or fee for a mile-based automobile insurance policy written
82	82	under Subchapter G, Chapter 2251, that is written for fewer than
83	83	1,000 miles, an agent or insurer must make the following written
84	84	disclosure to the applicant or insured:
85	85	TEXAS LAW PROHIBITS USE OF THIS POLICY OR BINDER TO
86	86	OBTAIN A MOTOR VEHICLE INSPECTION CERTIFICATE, AN
87	87	ORIGINAL OR RENEWAL DRIVER'S LICENSE, OR AN AUTOMOBILE
88	88	REGISTRATION OR LICENSE PLATES.
89	89	SECTION 3. Section 2251.001, Insurance Code, is amended to
90	90	read as follows:
91	91	Sec. 2251.001. PURPOSE. The purposes of this subchapter
92	92	and Subchapters B, C, D, [and] E, and G are to:
93	93	(1) promote the public welfare by regulating insurance
94	94	rates to prohibit excessive, inadequate, or unfairly
95	95	discriminatory rates;
96	96	(2) promote the availability of insurance;
97	97	(3) promote price competition among insurers to
98	98	provide rates and premiums that are responsive to competitive
99	99	market conditions;
100	100	(4) prohibit price-fixing agreements and other
101	101	anticompetitive behavior by insurers; and
102	102	(5) provide regulatory procedures for the maintenance
103	103	of appropriate information reporting systems.
104	104	SECTION 4. Sections 2251.003(a) and (b), Insurance Code,
105	105	are amended to read as follows:
106	106	(a) This subchapter and Subchapters B, C, D, [and] E, and G
107	107	apply to:
108	108	(1) an insurer to which Article 5.13 applies, other
109	109	than the Texas Windstorm Insurance Association, the FAIR Plan
110	110	Association, and the Texas Automobile Insurance Plan Association;
111	111	and
112	112	(2) except as provided by Subsection (c), a Lloyd's
113	113	plan, reciprocal or interinsurance exchange, and county mutual
114	114	insurance company with respect to the lines of insurance described
115	115	by Subsection (b).
116	116	(b) This subchapter and Subchapters B, C, D, [and] E, and G
117	117	apply to all lines of the following kinds of insurance written under
118	118	an insurance policy or contract issued by an insurer authorized to
119	119	engage in the business of insurance in this state:
120	120	(1) general liability insurance;
121	121	(2) residential and commercial property insurance,
122	122	including farm and ranch insurance and farm and ranch owners
123	123	insurance;
124	124	(3) personal and commercial casualty insurance,
125	125	except as provided by Section 2251.004;
126	126	(4) medical professional liability insurance;
127	127	(5) fidelity, guaranty, and surety bonds other than
128	128	criminal court appearance bonds;
129	129	(6) personal umbrella insurance;
130	130	(7) personal liability insurance;
131	131	(8) guaranteed auto protection (GAP) insurance;
132	132	(9) involuntary unemployment insurance;
133	133	(10) financial guaranty insurance;
134	134	(11) inland marine insurance;
135	135	(12) rain insurance;
136	136	(13) hail insurance on farm crops;
137	137	(14) personal and commercial automobile insurance;
138	138	(15) multi-peril insurance; and
139	139	(16) identity theft insurance issued under Chapter
140	140	706.
141	141	SECTION 5. Section 2251.008, Insurance Code, is amended by
142	142	adding Subsection (f) to read as follows:
143	143	(f) The commissioner shall include in the report described
144	144	by Subsection (b) information compiled and analyzed by the
145	145	commissioner under Section 2251.304 concerning mile-based
146	146	automobile insurance policies written under Subchapter G.
147	147	SECTION 6. The change in law made by this Act applies only
148	148	to a personal automobile insurance policy that is delivered, issued
149	149	for delivery, or renewed on or after January 1, 2010. An insurance
150	150	policy that is delivered, issued for delivery, or renewed before
151	151	January 1, 2010, is covered by the law in effect at the time the
152	152	policy was delivered, issued for delivery, or renewed, and that law
153	153	is continued in effect for that purpose.
154	154	SECTION 7. This Act takes effect September 1, 2009.