Georgia
In January 2003, state legislators in Georgia introduced
HB
201, which would enable insurers in the state to offer
consumers a choice between mileage-based insurance and traditional,
time-based premiums. The proposed legislation requires that
consumers pre-purchase at least 2,000 miles of coverage
and requires insurers to file separate reports on their
experience with mileage-based versus time-based premiums.
Using these reports, the insurance commissioner would annually
compile the number of insurers issuing mileage-based premium
plans, record the locations in Georgia where mileage-based
premiums are being used, and analyze the impact of mileage-based
premiums on traditional, time-based premiums. The bill was
referred to committee after introduction.
Oregon
On July 3, 2003, Oregon Governor Ted Kulongoski signed off
on HB
2043, which provides tax credits for insurance companies
that offer mileage-based policies. The law provides a corporate
income tax credit of $100 per vehicle and $300 per policy
for insurance companies offering mileage-based insurance
rates. The credit program begins in 2005 and will run through
2010.
Texas
In 2001, the Texas legislature passed HB
45, which gives insurance companies the authority to
offer mileage-based insurance policies. HB 45 also requires
insurance companies to track and report claim losses and
premium revenues from mileage-based policies separate from
time-based policies. In January 2002, Texas’ state insurance
commissioner approved rules
regarding mileage-based insurance rates. The Texas law allows
insurance companies to offer PAYD to whomever they wish,
but unlike the Oregon bill detailed below, does not include
any tax-breaks for insurance companies providing PAYD policies.
That may be why insurance companies have yet to offer PAYD
insurance in Texas.
Status: To House Committee on Insurance, 1/30/03. |
