| 1 | 1 | | 81R5882 PB-D |
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| 2 | 2 | | By: West S.B. No. 565 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to premium discounts for certain vehicles equipped with a |
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| 8 | 8 | | tracking system. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle C, Title 10, Insurance Code, is amended |
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| 11 | 11 | | by adding Chapter 1954 to read as follows: |
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| 12 | 12 | | CHAPTER 1954. PREMIUM DISCOUNTS FOR AUTOMOBILE INSURANCE COVERAGE |
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| 13 | 13 | | Sec. 1954.001. DEFINITIONS. In this chapter: |
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| 14 | 14 | | (1) "Applicant" includes: |
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| 15 | 15 | | (A) an applicant for new insurance coverage; and |
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| 16 | 16 | | (B) a policyholder renewing insurance coverage. |
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| 17 | 17 | | (2) "Comprehensive coverage" means automobile |
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| 18 | 18 | | insurance coverage that covers the cost of replacing or repairing a |
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| 19 | 19 | | motor vehicle if the vehicle is stolen or damaged by fire, |
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| 20 | 20 | | vandalism, hail, or a cause other than a collision. |
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| 21 | 21 | | (3) "Insurer" means an insurance company, reciprocal |
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| 22 | 22 | | or interinsurance exchange, mutual insurance company, capital |
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| 23 | 23 | | stock insurance company, county mutual insurance company, Lloyd's |
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| 24 | 24 | | plan, or other legal entity authorized to write automobile |
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| 25 | 25 | | insurance in this state. The term includes an affiliate, as |
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| 26 | 26 | | described by this code, that is authorized to write and is writing |
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| 27 | 27 | | automobile insurance in this state. |
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| 28 | 28 | | (4) "Tracking system" means an electronic monitoring |
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| 29 | 29 | | system, global positioning satellite system, or other appropriate |
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| 30 | 30 | | technological system that is designed to track the location of a |
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| 31 | 31 | | motor vehicle. |
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| 32 | 32 | | Sec. 1954.002. REQUIRED PREMIUM DISCOUNT. (a) In |
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| 33 | 33 | | accordance with the rules adopted by the commissioner under this |
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| 34 | 34 | | chapter, an insurer shall grant to an applicant a discount in the |
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| 35 | 35 | | applicant's automobile insurance premiums for comprehensive |
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| 36 | 36 | | coverage for a motor vehicle equipped with a tracking system that is |
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| 37 | 37 | | designed to assist in the recovery of stolen vehicles. The insurer |
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| 38 | 38 | | shall grant the discount on receipt of written verification from |
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| 39 | 39 | | the applicant that the vehicle is equipped with such a system. |
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| 40 | 40 | | (b) The commissioner by rule shall prescribe the |
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| 41 | 41 | | requirements for determining that a motor vehicle is equipped with |
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| 42 | 42 | | an appropriate tracking system. |
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| 43 | 43 | | (c) Verification under this section must comply with the |
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| 44 | 44 | | requirements prescribed by the commissioner. |
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| 45 | 45 | | Sec. 1954.003. VEHICLE INSPECTION. (a) If determined |
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| 46 | 46 | | necessary by the commissioner, the rules adopted under this chapter |
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| 47 | 47 | | may require an inspection of the vehicle to be insured to ensure |
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| 48 | 48 | | that the vehicle is equipped with an appropriate tracking system. |
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| 49 | 49 | | (b) The applicant shall pay the costs of an inspection |
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| 50 | 50 | | required under this section. |
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| 51 | 51 | | Sec. 1954.004. PREMIUM DISCOUNT; EXCEPTION. (a) The |
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| 52 | 52 | | commissioner by rule shall establish the premium discount under |
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| 53 | 53 | | this chapter based on sound actuarial principles. |
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| 54 | 54 | | (b) The commissioner may approve a premium discount greater |
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| 55 | 55 | | or less than the discount established by rule under Subsection (a) |
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| 56 | 56 | | if: |
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| 57 | 57 | | (1) the insurer files the proposed discount with the |
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| 58 | 58 | | department; and |
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| 59 | 59 | | (2) the commissioner determines that the proposed |
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| 60 | 60 | | discount is actuarially justified. |
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| 61 | 61 | | Sec. 1954.005. GENERAL RULEMAKING AUTHORITY. The |
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| 62 | 62 | | commissioner may adopt rules as necessary to implement this chapter |
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| 63 | 63 | | in addition to other rules specifically required to be adopted |
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| 64 | 64 | | under this chapter. |
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| 65 | 65 | | SECTION 2. The commissioner of insurance shall adopt rules |
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| 66 | 66 | | as required by Chapter 1954, Insurance Code, as added by this Act, |
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| 67 | 67 | | not later than December 1, 2009. |
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| 68 | 68 | | SECTION 3. This Act applies only to an automobile insurance |
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| 69 | 69 | | policy delivered, issued for delivery, or renewed on or after |
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| 70 | 70 | | January 1, 2010. A policy delivered, issued for delivery, or |
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| 71 | 71 | | renewed before January 1, 2010, is governed by the law as it existed |
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| 72 | 72 | | immediately before the effective date of this Act, and that law is |
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| 73 | 73 | | continued in effect for that purpose. |
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| 74 | 74 | | SECTION 4. This Act takes effect September 1, 2009. |
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