(a) Effective until December 31, 1992, each previous "no-prior insurance" applicant who was written in a higher-rated insurance company will be re-underwritten on the applicant's renewal date subject to the underwriting criteria of each company to which the applicant applies at each company's or group of companies' lowest applicable rate.
(b) Insurers may not use an applicant's lack of prior insurance in determining the appropriate rate for private passenger automobile liability insurance where such applicant has not been operating an uninsured motor vehicle in the state for more than 30 days during the 12 months immediately preceding the date of the application.
(c) Applicants for automobile liability insurance currently or previously insured in a higher-rated insurance company or through the Texas Automobile Insurance Plan (the assigned risk plan) will be underwritten without consideration of the applicant's prior insurance carrier.
(d) Insurers or agents who make a quote to an applicant with no prior insurance having no more than one accident and one violation within the past three years which quote equals or exceeds the premium available through the assigned risk plan must inform the applicant of the approximate cost of coverage available through the assigned risk plan.
(e) If any provision of this section or the application thereof to any person or circumstance is held invalid for any reason, the invalidity shall not affect the other provisions or any other application of said provisions which can be given effect without the invalid provision or application. To this end all provisions of this section are declared to be severable.

Source Note: The provisions of this §5.401 adopted to be effective April 8, 1992, 17 TexReg 2207; amended to be effective September 24, 1992, 17 TexReg 6275.