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.