81R5882 PB-D
By: West S.B. No. 565
A BILL TO BE ENTITLED
AN ACT
relating to premium discounts for certain vehicles equipped with a
tracking system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 10, Insurance Code, is amended
by adding Chapter 1954 to read as follows:
CHAPTER 1954. PREMIUM DISCOUNTS FOR AUTOMOBILE INSURANCE COVERAGE
Sec. 1954.001. DEFINITIONS. In this chapter:
(1) "Applicant" includes:
(A) an applicant for new insurance coverage; and
(B) a policyholder renewing insurance coverage.
(2) "Comprehensive coverage" means automobile
insurance coverage that covers the cost of replacing or repairing a
motor vehicle if the vehicle is stolen or damaged by fire,
vandalism, hail, or a cause other than a collision.
(3) "Insurer" means an insurance company, reciprocal
or interinsurance exchange, mutual insurance company, capital
stock insurance company, county mutual insurance company, Lloyd's
plan, or other legal entity authorized to write automobile
insurance in this state. The term includes an affiliate, as
described by this code, that is authorized to write and is writing
automobile insurance in this state.
(4) "Tracking system" means an electronic monitoring
system, global positioning satellite system, or other appropriate
technological system that is designed to track the location of a
motor vehicle.
Sec. 1954.002. REQUIRED PREMIUM DISCOUNT. (a) In
accordance with the rules adopted by the commissioner under this
chapter, an insurer shall grant to an applicant a discount in the
applicant's automobile insurance premiums for comprehensive
coverage for a motor vehicle equipped with a tracking system that is
designed to assist in the recovery of stolen vehicles. The insurer
shall grant the discount on receipt of written verification from
the applicant that the vehicle is equipped with such a system.
(b) The commissioner by rule shall prescribe the
requirements for determining that a motor vehicle is equipped with
an appropriate tracking system.
(c) Verification under this section must comply with the
requirements prescribed by the commissioner.
Sec. 1954.003. VEHICLE INSPECTION. (a) If determined
necessary by the commissioner, the rules adopted under this chapter
may require an inspection of the vehicle to be insured to ensure
that the vehicle is equipped with an appropriate tracking system.
(b) The applicant shall pay the costs of an inspection
required under this section.
Sec. 1954.004. PREMIUM DISCOUNT; EXCEPTION. (a) The
commissioner by rule shall establish the premium discount under
this chapter based on sound actuarial principles.
(b) The commissioner may approve a premium discount greater
or less than the discount established by rule under Subsection (a)
if:
(1) the insurer files the proposed discount with the
department; and
(2) the commissioner determines that the proposed
discount is actuarially justified.
Sec. 1954.005. GENERAL RULEMAKING AUTHORITY. The
commissioner may adopt rules as necessary to implement this chapter
in addition to other rules specifically required to be adopted
under this chapter.
SECTION 2. The commissioner of insurance shall adopt rules
as required by Chapter 1954, Insurance Code, as added by this Act,
not later than December 1, 2009.
SECTION 3. This Act applies only to an automobile insurance
policy delivered, issued for delivery, or renewed on or after
January 1, 2010. A policy delivered, issued for delivery, or
renewed before January 1, 2010, is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2009.