HBA-RBT C.S.H.B. 203 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 203 By: Burnam Insurance 4/1/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, an insurance company may cancel a personal automobile policy if it has been in effect for less than 60 days. C.S.H.B. 203 prohibits an insurance company from canceling a personal automobile policy because a claim is brought under the policy or an accident occurs on or after the first day the policy is in effect, unless the insured is charged with specified alcohol-related offenses in connection with an accident. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 4, Article 21.49-2B, Insurance Code, by amending Subsection (i), and adding Subsection (j), as follows: (i) Authorizes an insurance company to cancel a personal automobile policy if it has been in effect less than sixty days. Provides an exception. (j) Prohibits an insurer from canceling a personal automobile policy because a claim is brought or an accident occurs on or after the first day the policy was in effect, regardless of whether the policyholder files a claim under the policy, unless the insured driver is charged under Section 49.03 (Consumption or Possession of Alcoholic Beverage in Motor Vehicle), 49.04 (Driving While Intoxicated), 49.07 (Intoxication Assault), or 49.08 (Intoxication Manslaughter), Penal Code, in connection with the accident. SECTION 2. Makes application of this Act prospective beginning January 1, 2000. SECTION 3. Emergency clause. Effective date: 90 days after adjournment. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 203 modifies the original bill by removing all references to homeowner's, farm owner's, and ranch owner's insurance policies, and to make conforming changes. The substitute modifies the original by reinstating the 60-day limit, instead of the proposed 30-day limit, for insurance companies to cancel personal automobile policies.