Insurance Committee Tackles Tough Issues at Initial Hearing

The Texas House of Represen-tatives’ Committee on Insurance kicked off its first meeting of the 77th Legislative Session Feb. 12 by reviewing 10 of 12 bills brought before it. An underlying theme of discrimination permeated the committee’s discussions.

The first order of business for the committee was House Bill 162 introduced by Joseph Pickett, D-El Paso, which seeks to impound the vehicles of uninsured drivers involved in crashes.

Pickett told the committee he seeks only to impound vehicles involved in accidents, not those involved in traffic stops. By so doing, he believes that those who are financially capable of purchasing insurance but who choose not to “for the simple reason that they can get away with it” may be persuaded to insure their vehicles.

“Too many people in our state are driving without insurance,” Pickett told the committee, citing estimates that indicate at least three million drivers in Texas are uninsured. “It’s already the law, but what are we doing to uphold the law?

Testifying on behalf of Pickett’s bill was DeSoto Police Chief Mike Brodnax, who told the committee the city has been conducting impounds very similar to those proposed under Pickett’s bill for the last two years, except impounds occur from routine traffic stops not involving a crash. The result, he said, has been a reduction in accidents involving uninsured motorists.

In DeSoto, officers verify insurance by calling the insurance company or agent. And if a driver is found to have insurance after his or her vehicle has been impounded, the police department foots the bill. Brodnax told the committee the department was initially impounding one of every four cars stopped because of the driver’s failure to produce valid and current insurance information.

No one voiced opposition to the bill during the hearing.

One bill that did receive some industry opposition, however, was House Bill 45, introduced by Rep. Ruth McClendon, D-San Antonio, which calls for a per-mile auto insurance policy option for Texas drivers. McClendon is working with insurers to determine the most feasible way for some insurers to take part in such a plan. McClendon plans for the coverage to be offered only by those companies who wish to take part in such a program.

Progressive County Mutual, which already offers such a program, but currently only on a renewal basis, supported the notion at the hearing. However, other company representatives said they would only support such a measure on an optional basis.

Another bill of burgeoning interest to the industry is House Bill 530 introduced by Miguel Wise, D-Weslaco, which proposes the elimination of credit scoring because it unfairly and adversely affects low income and minority individuals.

The committee determined these and other bill pending, and will take them up at the next hearing. Two bills introduced by Lon Burnam, D-Fort Worth, were postponed until March 5.