Texas 2009 - 81st Regular

Texas Senate Bill SB1843

Filed
 
Out of Senate Committee
4/9/09  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to coverage of drivers under a personal automobile insurance policy.

Impact

The introduction of this requirement is expected to have significant implications on insurance practices statewide. Policies issued or renewed from January 1, 2010, onwards will have to align with this new provision, thereby creating a more inclusive coverage landscape for drivers in Texas. This change could help reduce instances of uninsured driving and the associated risks and liabilities for both insured drivers and insurance companies. The requirement offers a framework for better coverage, reflecting a shift in state law to accommodate a broader range of driving situations.

Summary

SB1843 proposes amendments to Chapter 1952 of the Texas Insurance Code with a focus on personal automobile insurance policies. Specifically, the bill mandates that these policies must include coverage for unnamed drivers, meaning any driver who believes they are permitted to use the insured vehicle will be granted liability coverage under the policy. This change aims to enhance protection for drivers who may not be explicitly named in the policy yet operate the vehicle with reasonable belief of entitlement.

Conclusion

Ultimately, SB1843 seeks to adapt the state's insurance policies to contemporary driving realities and ensure that more drivers are protected under personal automobile insurance. The balance between providing adequate protection for drivers and managing the potential financial impact on insurers presents a central challenge for lawmakers and stakeholders as discussions around this bill progress.

Contention

Notably, while the bill might be seen as a positive step towards consumer protection, it may also raise concerns among insurance providers regarding potential increases in claims. Insurers may argue that including unnamed drivers could lead to higher premiums, as the risk of liability would be distributed among a larger pool of insured drivers. Furthermore, the bill allows named insured individuals to exclude specific persons from coverage, which could result in disputes over liability in the event of an accident involving an unnamed driver.

Companion Bills

No companion bills found.

Previously Filed As

TX SB554

Relating to an appraisal procedure for disputed losses under personal automobile insurance policies.

TX HB4194

Relating to an appraisal process for disputed losses under personal automobile or residential property insurance policies.

TX HB1352

Relating to the provision of uninsured or underinsured motorist coverage in automobile liability insurance policies.

TX HB1437

Relating to an appraisal process for disputed losses under personal automobile or residential property insurance policies.

TX HB1656

Relating to the payment of deductibles under automobile insurance policies.

TX HB2039

Relating to automobile liability insurance for digital network company drivers.

TX SB167

Relating to a pool for certain individuals with claims against persons excluded from coverage by certain automobile insurance policies; authorizing an assessment.

TX SB153

Relating to proof of insurance and database requirements for operator's and certain exclusionary automobile insurance policies.

TX HB1039

Relating to coverage of additional living expenses under a residential property insurance policy.

TX SB1083

Relating to insurer restrictions and duties regarding repair of a motor vehicle covered under an insurance policy.

Similar Bills

NJ A4054

Prohibits motor vehicle liability insurance policy from restricting full payment of recovery amounts under covered person's policy.

MS SB2222

Vehicle data; prevent an insurer from using insured's data to determine rates to renew policy unless insured consents.

CT SB00089

An Act Concerning Travel Insurance And Suicide.

CT SB00205

An Act Concerning Travel Insurance And Suicide.

TX HB3420

Relating to liability coverage for certain vehicles provided by certain automobile repair facilities.

NJ A1761

Prohibits motor vehicle liability insurance policy from restricting full payment of recovery amounts under covered person's policy.

TX SB1095

Relating to required disclosures regarding named driver automobile insurance policies.

TX HB3203

Relating to a named driver policy.