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AN ACT
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relating to coverage of certain persons under an automobile |
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insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is |
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amended by adding Sections 1952.0515 and 1952.0545 to read as |
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follows: |
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Sec. 1952.0515. REQUIRED COVERAGE. An agent or insurer, |
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including a county mutual insurance company, may not deliver or |
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issue for delivery in this state a personal automobile insurance |
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policy unless the policy provides at least the minimum coverage |
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specified by Subchapter D, Chapter 601, Transportation Code. |
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Sec. 1952.0545. REQUIRED DISCLOSURE REGARDING NAMED DRIVER |
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POLICIES; PERSONS IN INSURED'S HOUSEHOLD. (a) In this section, |
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"named driver policy" means an automobile insurance policy that |
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does not provide coverage for an individual residing in a named |
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insured's household specifically unless the individual is named on |
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the policy. The term includes an automobile insurance policy that |
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has been endorsed to provide coverage only for drivers specifically |
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named on the policy. |
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(b) Before accepting any premium or fee for a named driver |
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policy, an agent or insurer, including a county mutual insurance |
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company, must make the following disclosure, orally and in writing, |
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to the applicant or insured: |
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WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE |
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COVERAGE FOR INDIVIDUALS RESIDING IN THE INSURED'S |
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HOUSEHOLD THAT ARE NOT NAMED ON THE POLICY. |
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(c) Before accepting any premium or fee for a named driver |
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policy, an agent or insurer, including a county mutual insurance |
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company, must receive a copy of the disclosure described by |
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Subsection (b) that is signed by the applicant or insured. |
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(d) An agent or insurer, including a county mutual insurance |
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company, that delivers or issues for delivery a named driver policy |
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in this state shall specifically include in the policy and |
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conspicuously identify on the front of any proof of insurance |
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document issued to the insured the required disclosure under |
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Subsection (b). |
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(e) The agent or insurer shall require the applicant or |
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insured to confirm contemporaneously in writing the provision of |
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oral disclosure pursuant to Subsection (b). |
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SECTION 2. Section 601.081, Transportation Code, is amended |
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to read as follows: |
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Sec. 601.081. STANDARD PROOF OF MOTOR VEHICLE LIABILITY |
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INSURANCE FORM. (a) In this section, "named driver policy" has |
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the meaning assigned by Section 1952.0545, Insurance Code. |
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(b) A standard proof of motor vehicle liability insurance |
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form prescribed by the Texas Department of Insurance must include: |
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(1) the name of the insurer; |
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(2) the insurance policy number; |
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(3) the policy period; |
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(4) the name and address of each insured; |
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(5) the policy limits or a statement that the coverage |
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of the policy complies with the minimum amounts of motor vehicle |
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liability insurance required by this chapter; [and] |
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(6) the make and model of each covered vehicle; and |
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(7) for a named driver policy, the required disclosure |
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under Section 1952.0545, Insurance Code. |
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SECTION 3. This Act applies only to an insurance policy that |
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is delivered, issued for delivery, or renewed on or after January 1, |
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2014. A policy delivered, issued for delivery, or renewed before |
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January 1, 2014, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2013. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1567 passed the Senate on |
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May 6, 2013, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1567 passed the House on |
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May 22, 2013, by the following vote: Yeas 143, Nays 2, three |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |