Bill Text: TX HB3059 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the regulation of damage waivers used by certain vehicle rental companies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-19 - Left pending in committee [HB3059 Detail]
Download: Texas-2011-HB3059-Introduced.html
82R10271 KCR-D | ||
By: Smithee | H.B. No. 3059 |
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relating to the regulation of damage waivers used by certain | ||
vehicle rental companies. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 91, Business & Commerce | ||
Code, is amended by adding Section 91.002 to read as follows: | ||
Sec. 91.002. USE OF CERTAIN DAMAGE WAIVERS PROHIBITED. A | ||
rental company may not sell or provide a damage waiver unless: | ||
(1) the waiver is underwritten and delivered or issued | ||
for delivery by an insurer to which Chapters 2251 and 2301, | ||
Insurance Code, apply; | ||
(2) the rate used to price the damage waiver is not | ||
disapproved under Chapter 2251, Insurance Code; and | ||
(3) the form of the damage waiver has been approved by | ||
the commissioner of insurance under Chapter 2301, Insurance Code. | ||
SECTION 2. Chapter 2251, Insurance Code, is amended by | ||
adding Subchapter G to read as follows: | ||
SUBCHAPTER G. DAMAGE WAIVERS USED BY VEHICLE RENTAL COMPANIES | ||
Sec. 2251.301. DEFINITIONS. In this subchapter: | ||
(1) "Damage waiver" has the meaning assigned by | ||
Section 91.001, Business & Commerce Code. | ||
(2) "Vehicle rental company" has the meaning assigned | ||
to the term "rental company" by Section 91.001, Business & Commerce | ||
Code. | ||
Sec. 2251.302. RATES. (a) Notwithstanding any other | ||
provision of this chapter, rates for pricing damage waivers sold or | ||
provided by vehicle rental companies are governed by Subchapters B | ||
and C in the same manner as rates for insurance policies described | ||
by Section 2251.003(b). | ||
(b) A vehicle rental company may not sell or provide a | ||
damage waiver unless the rate used to price the damage waiver is | ||
filed with the department by the insurer underwriting the waiver | ||
and is not disapproved by the commissioner under Subchapter C. | ||
Sec. 2251.303. RULES. The commissioner shall adopt rules | ||
necessary to implement and enforce this subchapter. | ||
SECTION 3. Chapter 2301, Insurance Code, is amended by | ||
adding Subchapter C to read as follows: | ||
SUBCHAPTER C. FORMS FOR DAMAGE WAIVERS USED BY VEHICLE RENTAL | ||
COMPANIES | ||
Sec. 2301.101. DEFINITIONS. In this subchapter: | ||
(1) "Damage waiver" has the meaning assigned by | ||
Section 91.001, Business & Commerce Code. | ||
(2) "Vehicle rental company" has the meaning assigned | ||
to the term "rental company" by Section 91.001, Business & Commerce | ||
Code. | ||
Sec. 2301.102. FILING AND APPROVAL OF WAIVERS. An insurer | ||
may not deliver or issue for delivery in this state a damage waiver | ||
for use by a vehicle rental company, and a vehicle rental company | ||
may not sell or provide a damage waiver in this state, unless the | ||
form of the waiver has been filed with and approved by the | ||
commissioner in the same manner as an insurance policy described by | ||
Section 2301.003(b). | ||
Sec. 2301.103. RULES. The commissioner shall adopt rules | ||
necessary to implement and enforce this chapter. | ||
SECTION 4. This Act applies only to a damage waiver sold or | ||
provided by a rental company subject to Chapter 91, Business & | ||
Commerce Code, on or after January 1, 2012. | ||
SECTION 5. This Act takes effect September 1, 2011. |