Untitled Texas Attorney General Opinion ( 1985 )

The Attorney General of Texas
JIM MAllOX Hay 10, 1985
Attorney General
Supreme Court Bullding Bonorablc Bill Memer Opinion No. JM-315
P. 0. Box 12545 Cheirmsn
Aurtln. TX. 75711.2545 Calendars Cosmittelz Re: Effect on existing policies
5121475.2501
Texas House of Rep,cesentatives of January 1, 1984, increase in
Talax Olw57C1357
lrlecopler 5121475.0255
P. 0. Box 2910 required Proof of Financial Re-
Austin, Texas 78,169 aponsibility under article
6701h. V.T.C.S.
It4 JBckwn, Suite 700
OBIIBB, TX. 75202.4505
Dear Representative Messer:
214l7425944
You have asked whether automobile liability insurance policies In
4S24 Alberta Ave.. Suite 150 effect at the time Senate Bill No. 538 (Sixty-eighth Legislature,
El P1B.a. TX. 799c52793 Regular Session) became law on January 1, 1984, must be read there-
915633-34w after to provide e.t least fifteen thousand dollars ($15,000) coverage
against liability regardless of the stated policy limits.
1001 Texas. SUICO700
Houston. TX. 77002.3111 The legislati~cn, Acts 1983, 68th Leg., ch. 535 at 3122. amended
713/223-5886 article 6701h. V.T.C.S., the Safety Responsibility Law. Basically.
the bill changed the deffnitioa of “Proof of Financial Responsi-
bility,” which had prevfously required motorists to shov
505 Broadway. Suite 312
Lubbock. TX. 7940%3479
5W747-5235 [p] roof of
ability to respond in damages for
liability, on account of accidents occurring
BubBequeM to the effective date of said proof.
1309 N. Tmth. Sulle S
McAllan. TX. 755ol.lBB5
arising out of the ownership, maintenance or use
5121B52.4547 of a motor vehicle. in the amount of Ten Thousand
Dollars 1:$10,000) because of bodily Injury to or
death of’ one person in any one accident. , . .
100 Win PluB. SuitB 400
SB~ Antonio. TX. 72205.2797
5lZ225+lSl
and in amounts of $20,000 and $5,000. respectively, for Injuries to
more than one person and for property damage. See
- Acts 1963, 58th
Leg., ch. 506, $1, st 1320. Under the new provisions, those minimum
An Equal Opportunity/ amounts have beer, raised to $15,000, $30.000, and $15,000. respec-
AffirmalIve Action Employer t ively , effective, January 1, 1984, and to $20,000, $40,000, and
$15,000, effectivtr January 1, 1986. V.T.C.S. art. 6701h, fl.
Section 7 of Senate Bfll No. 538 stated:
This Act takes effect January 1, 1984, provided
that arf insurance policies Issued prior to
January 11, 1984, which proved financial responsi-
bility prior to that date shall continue to be
p. 1445
Ronorable Bill flerrcr - Page 2 (J?t-315)
adequrte proof offinancial responsibility until
it [s$cl terminates DC one year from its issuance.
whichever Is sooner?, snd sny insurance policy
dssued in 1985 chic?, proved financisl responri-
bllity prior to January-l. 1986, shall continue to
be adequate proof of finsncial responsibility
until it terminates or one year from its issuance,
vhlchever is sooner. (Emphasis added).
The Safety Responsibility Law does not affect the actual amount
of damages for which a motorist may be held liable by an Injured party
in court; It Is a regulatorg measure that denies the privilege of
uslnn Texas hiuhwavs to a motorist unless the motorist can show
fir&cial respo&ibillty In rmlounts specified by lam. See Gillas le
v. Department of Public SafEz, 259 S.W.2d 177 (Tex. 1953
---K-e
denied. 347 U.S. 933 (19541. Thus. a failure to furnish evidence
proof of financial responsibility boes not insulate a motorist from
financlsl responsibility for any damages his use of Texas highways may
occasion, but such a failure can cause the offending motorist to lose
his driving pr%vileges and v:ilLl make him subject to criminal penalty.
V.T.C.S. art. 6701h. lSlC, 1E.
In our opinion, the leglslature has clearly indicated its intent
that no motorist should lose his driving privileges or be subject to
criminal penBlty for failure to provide “Proof of Financial ReBpOnBi-
bility” if he remained insured after January 1. 1984, under an in-
surance policy that was adequate on December 31, 1983. to prove BuCh
financial responsibility undlx article 6701h as It then read; and that
such policy would thereafter continue to furnish adequate proof of
financial responsibility urder the statute until the policy ter-
minated, or until the expiration of~one year from Its Issuance, which- _
ever occurred first.
No part of the act bacame law before January 1, 1984, and
inasmuch as an act speaks at3 of the time at which It takes effect, no
one was required to take rwtice of It before that time. Popham v.
Patterson, 51 S.P.2d 680 (Tex. 1932). The fact that an insurance
polfcy reflecting policy limits of only $10,080 vas first written
after Senate Bill No. 538 va.8 passed in 1983 is unimportant, so long
as it vss written prior to January 1, 1984 and remained in effect on
that date, not having been i,ssued as much as a full year earlier. A
provision effective January 1, 1986 will again raise minimum required
amounts. Cur conclusion ‘31th respect to the provision effective
January 1. 1984, also applil?rr to the 1986 changes because of the clear
legislative intent. -Cf. Attorney General Opinion B-752 (1975).
The effect of Senate Dill No. 538 becoming lav was not to auto-
matically increase such wlicy limits, but, rather. to obviate the
need to increase them befxe a later time. See
-- Norton v. Kleberg
County, 231 S.W.2d 716 (Tex. 1950).
p. 1446
Aonorsbla Bill Hcrrer - PaSo 3 (JH-313)
The effect of Senate Bill No. 538. Sixty-
- eighth Legislature, Rcpulat Session, vas not to
sutosstically incwase thc~ limits of existing
automoblle liabilj (,y policies to s ~lniram of
$15.000 on January 1, 1984, but rather vas to
obviste the need to immediately increase such
limits in order to satisfy the financial respon-
sibility requireme:>ts of article 6701h. V.T.C.S.
Very truly your
I r( /
J IW MATTOX
Attorney General of Texas
TOM GREFiN
First Assistant Attorney Ger.eral
DAVID R. RICBARDS
Executive Assistant Attorney General
ROBERTGRAY
Special Assistant Attorney General
ltICX GILPIN
Chairman, Opinion Committee
Prepared by Bruce Youngbloosi
Assistant Attorney General
APPROVED:
OPlNION COMMITTEE
Rick Gllpin, Chairman
Jon Bible
Colln Cerl
Susan Garrison
Tony Guillory
Jim Hoellinger
Jennifer RigSs
Nancy Sutton
Bruce Youngblood
p. 1447