82R10271 KCR-D
By: Smithee H.B. No. 3059
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of damage waivers used by certain
vehicle rental companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 91, Business & Commerce
Code, is amended by adding Section 91.002 to read as follows:
Sec. 91.002. USE OF CERTAIN DAMAGE WAIVERS PROHIBITED. A
rental company may not sell or provide a damage waiver unless:
(1) the waiver is underwritten and delivered or issued
for delivery by an insurer to which Chapters 2251 and 2301,
Insurance Code, apply;
(2) the rate used to price the damage waiver is not
disapproved under Chapter 2251, Insurance Code; and
(3) the form of the damage waiver has been approved by
the commissioner of insurance under Chapter 2301, Insurance Code.
SECTION 2. Chapter 2251, Insurance Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G. DAMAGE WAIVERS USED BY VEHICLE RENTAL COMPANIES
Sec. 2251.301. DEFINITIONS. In this subchapter:
(1) "Damage waiver" has the meaning assigned by
Section 91.001, Business & Commerce Code.
(2) "Vehicle rental company" has the meaning assigned
to the term "rental company" by Section 91.001, Business & Commerce
Code.
Sec. 2251.302. RATES. (a) Notwithstanding any other
provision of this chapter, rates for pricing damage waivers sold or
provided by vehicle rental companies are governed by Subchapters B
and C in the same manner as rates for insurance policies described
by Section 2251.003(b).
(b) A vehicle rental company may not sell or provide a
damage waiver unless the rate used to price the damage waiver is
filed with the department by the insurer underwriting the waiver
and is not disapproved by the commissioner under Subchapter C.
Sec. 2251.303. RULES. The commissioner shall adopt rules
necessary to implement and enforce this subchapter.
SECTION 3. Chapter 2301, Insurance Code, is amended by
adding Subchapter C to read as follows:
SUBCHAPTER C. FORMS FOR DAMAGE WAIVERS USED BY VEHICLE RENTAL
COMPANIES
Sec. 2301.101. DEFINITIONS. In this subchapter:
(1) "Damage waiver" has the meaning assigned by
Section 91.001, Business & Commerce Code.
(2) "Vehicle rental company" has the meaning assigned
to the term "rental company" by Section 91.001, Business & Commerce
Code.
Sec. 2301.102. FILING AND APPROVAL OF WAIVERS. An insurer
may not deliver or issue for delivery in this state a damage waiver
for use by a vehicle rental company, and a vehicle rental company
may not sell or provide a damage waiver in this state, unless the
form of the waiver has been filed with and approved by the
commissioner in the same manner as an insurance policy described by
Section 2301.003(b).
Sec. 2301.103. RULES. The commissioner shall adopt rules
necessary to implement and enforce this chapter.
SECTION 4. This Act applies only to a damage waiver sold or
provided by a rental company subject to Chapter 91, Business &
Commerce Code, on or after January 1, 2012.
SECTION 5. This Act takes effect September 1, 2011.