HBA-CCH H.B. 1700 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1700
By: Gutierrez
Insurance
2/23/2001
Introduced



BACKGROUND AND PURPOSE 

While 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.  House Bill 1700
authorizes the commissioner of insurance to establish a program to provide
for the sale of short-term liability insurance to motorists entering Texas
from Mexico.    

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

House Bill 1700 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 motorists entering
Texas at the Texas-Mexico border crossings and to increase the availability
of the policies.  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.