Texas 2019 - 86th Regular

Texas House Bill HB4278 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R7402 SCL-D
2	2	By: Vo H.B. No. 4278
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to regulation of persons holding a certificate of
8	8	self-insurance for establishment of financial responsibility for
9	9	operating a motor vehicle.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 601.124, Transportation Code, is amended
12	12	to read as follows:
13	13	Sec. 601.124. SELF-INSURANCE. (a) A person in whose name
14	14	more than 25 motor vehicles are registered may qualify as a
15	15	self-insurer by obtaining a certificate of self-insurance issued by
16	16	the Texas Department of Insurance [department] as provided by this
17	17	section.
18	18	(b) The Texas Department of Insurance [department] may
19	19	issue a certificate of self-insurance to a person if:
20	20	(1) the person applies for the certificate; [and]
21	21	(2) the person files with the Texas Department of
22	22	Insurance a bond:
23	23	(A) in the amount of $10,000;
24	24	(B) conditioned for payment:
25	25	(i) in the amounts and under the same
26	26	circumstances as required under a motor vehicle liability insurance
27	27	policy; and
28	28	(ii) in accordance with the claims review
29	29	procedure under Subsection (c-1) or a court order;
30	30	(C) that is not cancelable before the sixth day
31	31	after the date the Texas Department of Insurance receives written
32	32	notice of the cancellation; and
33	33	(D) approved by the Texas Department of
34	34	Insurance; and
35	35	(3) the commissioner of insurance [department] is
36	36	satisfied that the person has and will continue to have the ability
37	37	to pay judgments obtained against the person.
38	38	(c) The self-insurer must supplement the certificate with
39	39	an agreement that, for accidents occurring while the certificate is
40	40	in force, the self-insurer will pay the same judgments within the
41	41	time and in the same amounts as an insurer would be obligated to pay
42	42	under an owner's motor vehicle liability insurance policy issued to
43	43	the self-insurer if such policy were issued. The agreement may
44	44	include any other requirements that the commissioner of insurance
45	45	determines are appropriate for ensuring that the self-insurer pays
46	46	a legitimate claim timely.
47	47	(c-1) The commissioner of insurance by rule shall establish
48	48	a claims review procedure under which a claimant may file a motor
49	49	vehicle collision claim against the self-insurer with the Texas
50	50	Department of Insurance. If the claimant prevails, the claimant
51	51	may recover the awarded amount from the bond filed by the
52	52	self-insurer and the self-insurer shall replenish the bond as
53	53	necessary for the bond to be in the amount described by Subsection
54	54	(b)(2)(A). A claim under the procedure is a contested case under
55	55	Chapter 2001, Government Code.
56	56	(c-2) Notwithstanding any other law, a person may file suit
57	57	against the self-insurer by using the self-insurer's assumed name
58	58	stated on a certificate filed under Chapter 71, Business & Commerce
59	59	Code, for a cause of action:
60	60	(1) provided by other law; and
61	61	(2) arising from a motor vehicle collision:
62	62	(A) occurring while the certificate is in effect;
63	63	and
64	64	(B) in which a motor vehicle registered by the
65	65	self-insurer is involved.
66	66	(d) The Texas Department of Insurance [department] for
67	67	cause, including failure to pay a legitimate claim timely or
68	68	failure to comply with a requirement imposed by the commissioner of
69	69	insurance, may cancel a certificate of self-insurance after a
70	70	hearing. Cause includes failure to pay a judgment before the 31st
71	71	day after the date the judgment becomes final.
72	72	(e) A self-insurer must receive at least five days' notice
73	73	of a hearing held under Subsection (d). The Texas Department of
74	74	Insurance [department] shall send notice of the hearing to the
75	75	self-insurer by:
76	76	(1) first class mail; or
77	77	(2) e-mail if the self-insurer has provided an e-mail
78	78	address to the Texas Department of Insurance [department] and has
79	79	elected to receive notice electronically.
80	80	(f) The Texas Department of Insurance shall suspend a
81	81	certificate under Subsection (d) for six months if the self-insurer
82	82	fails to pay a legitimate claim timely. If the self-insurer
83	83	subsequently fails to pay a legitimate claim timely, the Texas
84	84	Department of Insurance shall cancel the certificate.
85	85	(g) The commissioner of insurance may adopt rules necessary
86	86	to implement this section.
87	87	SECTION 2. Section 601.124, Transportation Code, as amended
88	88	by this Act, applies only to a certificate of self-insurance issued
89	89	on or after January 1, 2020. A certificate of self-insurance issued
90	90	before January 1, 2020, is governed by the law applicable to the
91	91	certificate immediately before the effective date of this Act, and
92	92	that law is continued in effect for that purpose.
93	93	SECTION 3. This Act takes effect September 1, 2019.