By: Van de Putte S.B. No. 1843
(In the Senate - Filed March 11, 2009; March 20, 2009, read
first time and referred to Committee on Business and Commerce;
April 9, 2009, reported favorably by the following vote: Yeas 9,
Nays 0; April 9, 2009, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to coverage of drivers under a personal automobile
insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is
amended by adding Section 1952.059 to read as follows:
Sec. 1952.059. REQUIRED PROVISION: COVERAGE FOR UNNAMED
DRIVERS. (a) A personal automobile insurance policy that covers
liability arising out of ownership, maintenance, or use of a motor
vehicle by a named insured must contain a provision to extend
liability coverage to each driver who has a reasonable belief that
the driver is entitled to use the covered motor vehicle.
(b) This section does not prohibit the named insured from
excluding specific persons from coverage under the policy. An
exclusion under this section must be in writing and must:
(1) include the name of the person excluded from
coverage;
(2) be signed by the named insured; and
(3) be attached to the policy.
SECTION 2. The change in law made by this Act applies only
to an insurance policy delivered, issued for delivery, or renewed
on or after January 1, 2010. A policy delivered, issued for
delivery, or renewed before January 1, 2010, is governed by the law
in effect immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.
* * * * *