Texas Attorneys Helping You Submit Your SR-22 Form

After a DWI, your license is suspended for a minimum of 30 days. If you wish to reinstate your license with the Texas Department of Public Safety, you will be required to pay a reinstatement fee and submit an SR-22 form.

What is it?

The SR-22 form, otherwise known as the Financial Responsibility Form, is an endorsement attached to an existing automobile insurance policy that provides the DPS with proof that you have the minimum required insurance to legally drive in Texas.

Why the DPS May Require an SR-22

For some, their ability to drive hinges on the DPS having an SR-22 on record.

The most common reasons the DPS could require you to get an SR-22 are:

• Conviction of a DWI
• Conviction of driving while under the influence of drugs
• Driving on a suspended license
• Multiple no-insurance tickets
• An unpaid judgment for a liability claim
• Excessive traffic violations

Jay Freeman of Concept-22 Insurance has provided this summary of the SR-22 insurance form:

One important element in obtaining an Occupational Driver’s License is that your client will be required to submit an SR-22 to the Texas Department of Public Safety. Without proper guidance, your client could easily take steps that may jeopardize not only their insurance coverage, but also your client’s financial well-being. This sec- tion will explain how this can happen and the advice you can give your client to help them avoid these problems. To begin, it is important to understand the basics as to what the form is and what it does. A Texas SR-22 (or Financial Responsibility Form) is not a stand-alone form; it is actually an endorsement that is attached to an auto- mobile insurance policy. This is why your client cannot purchase the SR-22 by itself; your client must actually purchase a policy, and the insurance company that provides the policy then issues the form. When an insurance company issues the SR-22, it is obligated to constantly monitor the policy status and notify DPS if that status changes. If the policy to which the SR-22 is attached cancels, then the insurance company is required to submit the second part of the SR-22 form (called the SR-26) to DPS, notifying the department that the SR-22 has been cancelled and is no longer valid.

Think of it like a light switch… when DPS receives the SR-22 from the insurance company, the light switch flips to “on” because the requirement has been met. When the policy cancels, the SR-26 is sent to DPS and then the switch flips to “off” because the SR-22 is no longer in force. If at that time, DPS no longer requires the driver to have an SR-22 on file, then everything just goes back to normal. If, however, DPS still requires that the driver maintain an SR-22, then DPS will begin the process to suspend the driver’s license.

Before 2010, the SR-22 was required to be pink; this requirement was removed when the DPS began allowing the forms to be submitted electronically. Many companies still issue the SR-22 on pink paper (probably because that’s the way it’s always been done) but it is not a DPS requirement.

There are a few more items about the physical SR-22 form that are helpful to understand. First, you might notice that there is an “Effective Date” but no “Ending Date.” This is because once the SR-22 is issued, it is active until the SR-26 is submitted to DPS. Next you might notice that the Case Number field is left blank. Sometimes insurance companies will try to avoid issuing the SR-22 by stating that they first need the court case number. The “Case Number” field is actually referring to the DPS Case Number, which is the Driver’s License number.

Finally, the form will be marked as either an “Owner’s Policy” or “Operator’s Policy.” If the owner’s box is marked, there will be information describing the vehicles listed on the policy in those fields. If the operator’s box is marked, those fields will be left blank. The difference between these two types of policies (and the advantages of one over the other) will be discussed later in this section.

There are many other reasons in addition to the Occupational Driver License that will require your client to maintain an SR-22 filing with the State of Texas. Here are just a few of those reasons:

• Multiple No-Insurance Tickets – the second such violation in the driver’s history will trigger the SR-22 requirement,
• An open judgment against the driver for an unpaid liability claim,
• Convictions for offenses of driving under the influence of alcohol,
• Convictions for drug-related offenses,
• Convictions for driving with a suspended or invalid license,
• Excessive traffic violations and more.

Even though the DPS regularly advises people to obtain the SR-22 form from their automobile insurance pro- vider, that is not always possible. Many insurance carriers consider the SR-22 to be an indicator of a “sub-standard” or “high-risk” driver; so, if a driver who is already insured with one of those companies requests an SR-22, this sends up warning flags to the company’s underwriters. An insurance company is required to file its underwriting

guideline with the Texas Department of Insurance, and then it must follow that guideline for all clients to avoid facing penalties. If the company your client is currently insured with provides coverage for “sub-standard” or “high-risk” drivers (people with multiple tickets or accidents on their driving record), then the best advice is for your client to talk to their current insurance agent about obtaining the SR-22.

However, if your client is currently insured with an automobile insurance carrier that specializes in providing coverage for “standard” or “preferred” drivers, then obtaining the SR-22 from their current company can become much more difficult, if not impossible. Here are some of the potential problems that often arise:

• If your client’s company does not want to provide the SR-22 and your client tries to force the issue, their policy will probably be flagged for non-renewal. In addition, many times the underwriters will use delaying tactics (e.g., requests for additional information or documentation) before issuing the SR-22. Many times the client will be under a strict timeline to provide the SR-22 and these delaying tactics will force the client to either voluntarily cancel their coverage or go somewhere else to obtain the SR-22.
• Another reason for the delaying tactic is this: once a policy has been in effect for 60 days, an insurance company can only cancel the policy for very specific reasons which are outlined in the Texas Personal Auto Policy. This is especially important if the SR-22 is required to obtain an Occupational or Essential Needs License (ODL). Although the ODL does give the client the right to drive, during the period of time it is required, the license status at DPS will show “Suspended”. This allows the insurance company the opportunity to cancel the policy with a written 10-day notice to the policy’s Named Insured at the address shown on the policy’s Declaration Page. So, by simply employing these delaying tactics in the issuance of the SR-22, many times the company can avoid issuing the form.
• Sometimes an insurance carrier might have several different tiers of companies available in which to place the coverage. These tiers might range from a Preferred Rate company to a Sub-Standard Rate company where the SR-22 could be issued. The agent might offer to move the insured’s policy to the Sub-Standard company in order to provide the SR-22; however, this move is often quite harmful to the policyholder. This move affects all drivers and vehicles on the policy, so suddenly the entire family is stuck paying these higher Sub-Standard rates. Even after the need for the SR-22 has passed, many times it takes years before the family is again eligible for a preferred rate.
• Finally, the need for an SR-22 can affect policies other than a family’s auto insurance. Many carriers offer very substantial multi-line policy discounts. For example, if your client has both home and automobile insurance with the same company, they are probably receiving a large discount in the premium on both of those policies. If the client is forced to move their auto coverage to a different company that can provide an SR-22; not only will they see an increase in the amount of money they are paying for their auto policy, but upon renewal they will also see a huge increase in their homeowner’s insurance because it no longer qualifies for the multi-line discount. Since homeowner’s insurance is often the most expensive policy a family purchases, this increase can be quite substantial.

Therefore, if your client currently has automobile insurance coverage through a “sub-standard” or “high-risk” company, they should talk to their agent about providing the SR-22. If, however, they are currently insured through a “standard” or “preferred” company, then it is usually a better option to obtain the SR-22 from a secondary, outside source. Nonetheless, if this is not done properly, it could create some problems that have the potential for financial devastation.

Many attorneys regularly instruct their clients to obtain the SR-22 from their insurance carrier without under- standing the many problems this can cause. Or worse, the attorney understands that there could be problems but only advises the client, “Don’t tell your insurance and get the SR-22 somewhere else.” On its face, this is generally good advice, but horribly incomplete. With only this guidance, many people will simply turn to the first insurance agency they see advertising SR-22s and ask to purchase the form as inexpensively as possible. The agency will then typically issue a minimum-limits liability-only Owner’s Policy (because this is the least expensive coverage required to issue the SR-22) on whatever vehicle the person happens to be driving that day. The agency is happy because they have sold a policy, and the person is happy because they have the form they need; the problem is that the person has now automatically terminated his current insurance coverage on that vehicle through their “preferred” carrier and replaced it with this minimum-limits liability-only policy.

Imagine the problems this could cause if there is an auto accident and the person discovers there is no longer coverage for the damage done to his vehicle, or coverage protecting the lienholder if the vehicle is financed, or any liability loss that exceeds the state minimum limits, or car rental, or towing coverage, etc.

The problem lies in the Texas Personal Auto Policy. A person can be listed on multiple policies as a driver, but a vehicle can only be listed on one policy at a time. Starting a new policy on a vehicle voids all prior coverage on that vehicle. This rule is in the policy to prevent someone from committing insurance fraud by purchasing multiple policies on a vehicle, then staging an accident and filing multiple claims for the same loss. This rule only applies to the single vehicle listed on the new policy and would have no effect on any additional vehicles listed on the original policy.

Although this might seem to present an insurmountable dilemma, this situation can be easily solved by purchasing the SR-22 attached to an Operator’s Policy (also commonly referred to as a “Non-Owner’s Policy”). Instead of providing coverage on a specific listed vehicle, this type of policy is written on the person as a driver. Because it does not provide duplicate coverage on a vehicle already insured on another policy, it completely avoids the Automatic Termination rule in the Texas Personal Auto Policy.

It is important to understand that the Operator’s Policy does not replace your client’s existing auto insurance coverage; it is simply an additional policy that allows an SR-22 to be issued without impacting or interfering with your client’s regular auto policy.

While this information is intended to assist you in providing your client with advice to help lessen the impact of the SR-22 on them and their family during the time they are required to carry an ODL, there is another SR-22 requirement area of which few are aware. The authority for this requirement can be found at 37 Texas Adminis- trative Code § 25.6 (d)(2)(2004) and is also addressed on the Texas Department of Public Safety website. While the wording in the Administrative Code might seem a bit confusing, there is absolutely no doubt as to the intent on the DPS website or on its FAQ page. Over the last few years DPS has moved this rule around on the website several times; however, at the time of this writing the wording can be found here:

1. From the TDPS homepage, first click on the Driver License & ID’s link at the top of the page.

2. Toward the bottom of this next page, click the tab titled Suspensions & Reinstatements.

3. On the Suspensions & Reinstatements page there is a list of blue links on the left side of the page. Click on the Suspension Notifications link.

4. Under the paragraph titled “Suspensions & Withdrawals,” are three tabs labeled:

• Driving While License is Invalid (DWLI) Suspension
• Alcohol-Related Offenses
• Drug-Related Offenses

5. Each of these three links contain essentially the same wording regarding SR-22 Insurance:

• Obtain a Financial Responsibility Insurance Certificate (SR-22) from an authorized insurance com- pany (an SR-22 must be maintained for two years from the date of conviction).

6. All of these tabs also contain links to the Frequently Asked Questions (FAQ) page. This requirement is covered in “Section 9: SR-22 (Proof of Financial Responsibility)” of the FAQ page.

I have also seen this requirement mentioned in the Order of Suspension letter that DPS sends to your client. Although this two-year requirement has been around since 2004, in the past it was seldom enforced (and then primarily on drug and DWLI cases). Recently there has been a marked step-up in enforcement relating to all these cases. Thus, it is imperative to advise your client of its existence and suggest that they maintain the SR-22 for two years following a conviction.

If the Texas DPS determines that your client does not have an SR-22 on file, it appears that DPS will imme- diately suspend the license without any additional notice to your client. If your client’s license is suspended under this requirement, they will not need to obtain another ODL; they will be able to reinstate their license by filing the SR-22 and paying any required fees to the Department. However, the true jeopardy your client faces in this circumstance is the risk of arrest and penalties they may have to deal with if charged with DWLI (and if convicted, the two-year requirement starts all over again).

Minimum Liability Amounts in Texas

Each state has a slightly different breakdown of minimum insurance liability coverage. In order to drive in Texas, your insurance policy must have the following minimum liability coverage:

• $30,000 limits for bodily Injuries per person
  • For example:
    • Person A is injured and has $45,000 in medical bills
    • Person B is injured with $10,000 in medical bills
    • Person C is injured with $15,000 in medical bills
    • Persona D is injured with $10,000 in medical bills
  • Under the $30,000 limit for bodily injuries, Person A would only be insured by the drivers’ insurance up to $30,000. The rest of the $15,000 in injuries would likely be covered by the other driver’s insurance that was involved in the crash.
• $60,000 limits for all bodily injuries to all persons in the vehicle.

Meaning, if 4 people are injured for a total of $100,000 in medical bills, the policy will only pay $60,000 of those.

• For example:
  • Using the breakdown above and assuming they filed claims in the order their names appeared, Person A would collect $30,000 from the driver’s insurance, and Person B could collect $10,000. Person C could collect $15,000 adding up to $55,000 total claimed. Finally, person D could only collect $5,000 because the driver’s policy will have reached its limits.

Let Our Texas Lawyers Guide You Through the SR-22 Process

If you’ve recently been convicted of a DWI, obtaining an SR-22 is another step along the path of moving forward. At Deandra Grant Law, we can help you manage your DWI case by providing you with top-notch legal services. Attorney Deandra Grant has devoted her practice to understanding the science behind the Intoxilyzer 5000, field sobriety tests, and blood alcohol concentration. When you’re facing a criminal conviction as serious as a DWI, don’t just hire any criminal attorney, call Deandra Grant Law or visit www.conceptsr22.com for more information on what defenses are available to you.