81R10027 TJS-F
By: Paxton H.B. No. 2907
A BILL TO BE ENTITLED
AN ACT
relating to the potential effect of certain convictions on
automobile insurance rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1953.051, Insurance Code, as effective
April 1, 2009, is amended to read as follows:
Sec. 1953.051. CERTAIN RATING PLANS PROHIBITED. (a) A
rating plan regarding the writing of automobile insurance, other
than insurance written under Chapter 2151, may [not]:
(1) assign a rate consequence to a [charge or]
conviction for a violation of Subtitle C, Title 7, Transportation
Code; or
(2) [otherwise] cause premiums for automobile
insurance to be increased because of a [charge or] conviction
described by Subdivision (1).
(b) The application of Subsection (a) may not result in an
adverse rate consequence being assigned to or otherwise cause
premiums for automobile insurance to be increased for an insured
who does not have a conviction for a violation of Subtitle C, Title
7, Transportation Code.
SECTION 2. The change in law made by this Act applies only
to an automobile insurance policy that is delivered, issued for
delivery, or renewed on or after the effective date of this Act. An
automobile insurance policy that is delivered, issued for delivery,
or renewed before the effective date of this Act is covered by the
law in effect at the time the policy was delivered, issued for
delivery, or renewed, and that law is continued in effect for that
purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.