| 1 | 1 | | 85R12792 SCL-D |
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| 2 | 2 | | By: Isaac H.B. No. 3616 |
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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 regulation of persons holding a certificate of |
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| 8 | 8 | | self-insurance for establishment of financial responsibility for |
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| 9 | 9 | | operating a motor vehicle. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 601.124, Transportation Code, is amended |
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| 12 | 12 | | to read as follows: |
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| 13 | 13 | | Sec. 601.124. SELF-INSURANCE. (a) A person in whose name |
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| 14 | 14 | | more than 25 motor vehicles are registered may qualify as a |
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| 15 | 15 | | self-insurer by obtaining a certificate of self-insurance issued by |
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| 16 | 16 | | the Texas Department of Insurance [department] as provided by this |
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| 17 | 17 | | section. |
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| 18 | 18 | | (b) The Texas Department of Insurance [department] may |
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| 19 | 19 | | issue a certificate of self-insurance to a person if: |
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| 20 | 20 | | (1) the person applies for the certificate; and |
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| 21 | 21 | | (2) the commissioner of insurance [department] is |
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| 22 | 22 | | satisfied that the person has and will continue to have the ability |
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| 23 | 23 | | to pay judgments obtained against the person. |
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| 24 | 24 | | (c) The self-insurer must supplement the certificate with |
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| 25 | 25 | | an agreement that, for accidents occurring while the certificate is |
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| 26 | 26 | | in force, the self-insurer will pay the same judgments within the |
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| 27 | 27 | | time and in the same amounts as an insurer would be obligated to pay |
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| 28 | 28 | | under an owner's motor vehicle liability insurance policy issued to |
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| 29 | 29 | | the self-insurer if such policy were issued. The agreement may |
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| 30 | 30 | | include any other requirements that the commissioner of insurance |
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| 31 | 31 | | determines are appropriate for ensuring that the self-insurer pays |
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| 32 | 32 | | a legitimate claim timely. |
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| 33 | 33 | | (d) The Texas Department of Insurance [department] for |
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| 34 | 34 | | cause, including failure to pay a legitimate claim timely or |
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| 35 | 35 | | failure to comply with a requirement imposed by the commissioner of |
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| 36 | 36 | | insurance, may cancel a certificate of self-insurance after a |
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| 37 | 37 | | hearing. The self-insurer must receive at least five days' notice |
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| 38 | 38 | | of the hearing. Cause includes failure to pay a judgment before the |
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| 39 | 39 | | 31st day after the date the judgment becomes final. |
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| 40 | 40 | | (e) The commissioner of insurance may adopt rules necessary |
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| 41 | 41 | | to implement this section. |
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| 42 | 42 | | SECTION 2. Section 601.124, Transportation Code, as amended |
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| 43 | 43 | | by this Act, applies only to a certificate of self-insurance issued |
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| 44 | 44 | | on or after January 1, 2018. A certificate of self-insurance issued |
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| 45 | 45 | | before January 1, 2018, is governed by the law applicable to the |
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| 46 | 46 | | certificate immediately before the effective date of this Act, and |
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| 47 | 47 | | that law is continued in effect for that purpose. |
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| 48 | 48 | | SECTION 3. This Act takes effect September 1, 2017. |
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