HBA-DMH S.B. 186 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 186 By: Truan Insurance 4/29/2001 Engrossed BACKGROUND AND PURPOSE Currently, automobile insurance discounts are not available to active duty military personnel with good driving records. Base commanders cited high automobile insurance rates as a vital issue to soldiers during an interim hearing held by the Senate Committee on Veterans and Miliary Installations. Senate Bill 186 authorizes the commissioner of insurance to establish rules for motor vehicle insurance discounts for eligible soldiers on active duty in the military and for their spouses. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the commissioner of insurance in SECTION 1 (Section 2, Article 5.03-6, Insurance Code) of this bill. ANALYSIS Senate Bill 186 amends the Insurance Code to authorize an insurer who delivers or issues for delivery a motor vehicle insurance policy, on receipt of written verification from the insured that the insured or a family member covered by the policy who meet specified eligibility requirements, to grant a discount in the amount set by the commissioner of insurance (commissioner) in the premiums charged for the liability, medical payments, personal injury protection, and collision coverage only for the motor vehicle designated to be driven by the eligible individual. The bill authorizes the commissioner by rule to establish additional requirements for receipt of a discount, requires the commissioner by rule to set the amount of the discount, and authorizes the commissioner to adopt other rules necessary for the implementation of these provisions. The bill provides that an individual may not continue to receive a discount after the first date on which the individual fails to satisfy specified requirements unless the individual reestablishes eligibility. The bill requires an insurer to revoke a discount if an applicant for the discount knowingly provides false information in or with the application. EFFECTIVE DATE September 1, 2001, and applies only to a motor vehicle insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2002.