Texas House Bill HB4260

Texas 2009 - 81st Regular

Caption

Relating to coverage under an automobile insurance policy for certain family members.

Note

The bill stipulates that it applies only to actions commenced after its effective date and that existing laws will govern actions already in process, which helps mitigate the immediate impact of the changes on prior cases.

Impact

The legislation represents a significant shift in how automobile insurance policies treat family members of the insured. By mandating that coverage continue for spouses during separation periods, the bill aims to provide financial protection during a potentially vulnerable time for families. This may affect the terms under which insurance providers write policies, potentially leading to a reevaluation of coverage terms across the industry.

Summary

House Bill 4260 amends the Insurance Code, specifically Section 1952.056, to require personal automobile insurance policies to provide continuous coverage for certain family members. This includes coverage for spouses during periods of separation in contemplation of divorce, ensuring that they remain protected under the insured's policy. Furthermore, the bill states that other family members who are related by blood, adoption, or marriage, and who reside in the insured's household, cannot be excluded from coverage.

Contention

While the bill is generally viewed as a protective measure for families, there may be some contention surrounding the implications for insurance premiums. Insurance providers could argue that providing continued coverage during separations may lead to increased risk and higher costs for those policies. On the other hand, proponents of the bill argue that this is a necessary step to ensure that individuals who are going through family changes do not find themselves without necessary protections.