HBA-DMH C.S.H.B. 2932 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2932
By: Lewis, Glenn
Insurance
4/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, an insurance company may charge a surcharge on premiums
for vehicle insurance if the insured has been convicted of driving while
intoxicated, intoxication assault, or intoxication manslaughter. C.S.H.B.
2932 authorizes an insurer to reduce the premium surcharge by up to 50
percent for an insured convicted of such an offense whose insured motor
vehicle is equipped with a motor vehicle ignition interlock device. 

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. 

ANALYSIS

C.S.H.B. 2932 amends the Insurance Code to authorize an insurer to reduce
the premium surcharge by up to 50 percent for an insured whose insured
motor vehicle is equipped with a motor vehicle ignition interlock device as
required by a court order following the insured's conviction of driving
while intoxicated, intoxication assault, or intoxication manslaughter.  The
insured is entitled to the discount only for the period that the vehicle is
equipped with the device.  The bill authorizes an insurer to endorse a
policy to restrict coverage under the policy to the motor vehicle that is
equipped with a motor vehicle ignition interlock device. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2932 differs from the original bill by removing the rulemaking
authority granted to the commissioner of insurance to reduce the premium
surcharge for an insured whose motor vehicle is equipped with a motor
vehicle ignition interlock device.  The substitute adds provisions
authorizing an insurer to endorse a policy to restrict coverage under the
policy to the motor vehicle that is equipped with a motor vehicle ignition
interlock device and authorizing an insurer to reduce the premium surcharge
by up to 50 percent.