83R2367 PMO-D
By: N. Gonzalez of El Paso H.B. No. 1111
A BILL TO BE ENTITLED
AN ACT
relating to establishing a personal automobile insurance program
for certain low-income individuals; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle G, Title 10, Insurance Code, is amended
by adding Chapter 2155 to read as follows:
CHAPTER 2155. PERSONAL AUTOMOBILE INSURANCE FOR LOW-INCOME
INDIVIDUALS
Sec. 2155.001. DEFINITION. In this chapter, "motor
vehicle" means a self-propelled private passenger vehicle for use
on a highway.
Sec. 2155.002. ESTABLISHMENT OF PROGRAM. (a) The
commissioner by rule shall establish a program under this chapter
to provide to low-income individuals financial responsibility
coverage required by Subchapter D, Chapter 601, Transportation
Code.
(b) An insurer writing automobile insurance in this state,
including an insurance company, reciprocal or interinsurance
exchange, mutual insurance company, capital stock company, county
mutual insurance company, Lloyd's plan insurer, or other entity,
shall provide coverage under the program as required by rules
adopted by the commissioner.
Sec. 2155.003. COVERAGE PROVIDED. The program established
under this chapter may only provide personal automobile insurance
in the minimum coverage amounts required by Subchapter D, Chapter
601, Transportation Code.
Sec. 2155.004. COVERED INDIVIDUALS. (a) Subject to
Subsection (b), coverage under this chapter may be made available
only to an individual who:
(1) is a licensed driver with not less than three years
of driving experience; and
(2) qualifies as a good driver as defined by rules
adopted by the commissioner based on factors the commissioner
considers appropriate.
(b) Coverage may be made available only to an individual
described by Subsection (a) who:
(1) has a household income that is less than or equal
to 250 percent of the federal poverty guidelines as determined by
the United States Department of Health and Human Services; or
(2) after diligent efforts, obtained from an insurer
writing automobile insurance in this state not fewer than two
offers of coverage for a premium amount that is more than 10 percent
of the applicant's gross income.
(c) Notwithstanding Subsection (b), an applicant is not
eligible for coverage if the applicant is claimed during the
coverage period as a dependent for federal income tax purposes
unless:
(1) the person who claims the applicant as a dependent
has a household income that is less than or equal to 250 percent of
the federal poverty guidelines as determined by the United States
Department of Health and Human Services; or
(2) the applicant, after diligent efforts, obtained
from an insurer writing automobile insurance in this state not
fewer than two offers of coverage for the applicant for a premium
amount that is more than 10 percent of the gross income of the
person who claims the applicant as a dependent.
Sec. 2155.005. COVERED MOTOR VEHICLES. (a) Except as
provided by Subsection (b), coverage shall be available only for an
insurable motor vehicle registered in this state and valued at not
more than $20,000.
(b) Coverage may be made available for an insurable motor
vehicle not registered in this state and valued at not more than
$20,000 if the motor vehicle is registered in this state not later
than the 30th day after the date coverage is issued. The coverage
terminates on the 31st day after the date coverage is issued if the
motor vehicle is not registered in this state before that date.
Sec. 2155.006. RATE STANDARDS. (a) Rates for insurance
provided under this chapter must be just, reasonable, not
excessive, not confiscatory, and not unfairly discriminatory for
the risks to which the rates apply.
(b) The program shall offer premiums:
(1) on a sliding scale, based on financial need
determined by the applicant's household income and living
expenses; or
(2) based on past and prospective experience and other
factors the commissioner considers relevant, including the varying
conditions and hazards and the cost of living, in the county in
which the motor vehicle is registered.
(c) The program may not offer coverage without requiring
payment of premium.
Sec. 2155.007. APPEALS PROCESS. The commissioner shall
establish by rule a process by which an applicant may appeal the
denial of an application for coverage under this chapter.
Sec. 2155.008. TRAINING AND PUBLIC EDUCATION. (a) The
commissioner shall establish a voluntary training program about the
program established under this chapter for insurers writing
automobile insurance in this state. The commissioner may charge
each insurer participating in the training program a fee for
expenses incurred by the department in implementing the training
program.
(b) An insurer writing automobile insurance in this state
shall inform a prospective policyholder who seeks coverage under
Subchapter D, Chapter 601, Transportation Code, of the program
established under this chapter.
Sec. 2155.009. RULES. The commissioner shall adopt rules
necessary to implement and enforce this chapter.
SECTION 2. The commissioner of insurance shall ensure that
the program established under Chapter 2155, Insurance Code, as
added by this Act, is fully operational in a manner that requires
insurers writing automobile insurance in this state to provide
coverage under the program not later than January 1, 2014.
SECTION 3. This Act takes effect September 1, 2013.