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