HBA-JEK, CCH S.B. 693 77(R)BILL ANALYSIS


Office of House Bill AnalysisS.B. 693
By: Lucio
Insurance
4/26/2001
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Although the Texas Legislature has considered methods to increase the
compliance of Texas residents with the Texas Motor Vehicle Safety
Responsibility Act, little attention has been given to the impact of
uninsured motorists entering Texas along the Texas-Mexico border.  Any
reduction in the number of uninsured motorists on Texas highways and
roadways may yield benefits to all Texas residents.  Senate Bill 693
authorizes the commissioner of insurance to establish a program to provide
for the sale of short-term liability insurance to non-Texas resident
motorists visiting this state.    

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 5.01C, Insurance Code) of this bill. 

ANALYSIS

Senate Bill 693 amends the Insurance Code to authorize the commissioner of
insurance (commissioner) by rule to establish a program to provide for the
sale of short-term liability insurance policies to non-Texas resident
motorists visiting this state.  The bill authorizes the commissioner to
negotiate an agreement with any insurer to sell short-term liability
polices, and provides that a person representing an insurer in selling the
policies must be licensed.  The bill also provides that an insurer must use
the policy forms adopted by the commissioner unless the insurer is exempt
from using those forms. 

EFFECTIVE DATE

September 1, 2001.

EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 expands the definition of "short-term liability
insurance policy" to mean an insurance policy that is not insurance
assigned to an authorized insurance company by the Texas Automobile
Insurance Plan Association for a person required by the Texas Motor Vehicle
SafetyResponsibility Act to show proof of financial responsibility for the
future.