Texas 2009 - 81st Regular

Texas Senate Bill SB1843 Compare Versions

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1	1	By: Van de Putte S.B. No. 1843
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to coverage of drivers under a personal automobile
7	7	insurance policy.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is
10	10	amended by adding Section 1952.059 to read as follows:
11	11	Sec. 1952.059. REQUIRED PROVISION: COVERAGE FOR UNNAMED
12	12	DRIVERS. (a) In addition to applying to the insurers subject to
13	13	this chapter under Section 1952.001, this section applies to a
14	14	county mutual insurance company.
15	15	(b) Except as provided by Subsections (c), (d), and (e), an
16	16	insurer may not deliver or issue for delivery in this state a
17	17	personal automobile liability insurance policy, including a policy
18	18	provided through the Texas Automobile Insurance Plan Association
19	19	under Chapter 2151, that covers liability arising out of the
20	20	ownership, maintenance, or use of any motor vehicle unless the
21	21	policy covers all family members of the named insured residing in
22	22	the named insured's household and any other residents of the named
23	23	insured's household.
24	24	(c) Subsection (b) does not apply if an insurer obtains the
25	25	named insured's rejection of the coverage otherwise required under
26	26	that subsection, in writing, for all family members of the named
27	27	insured residing in the named insured's household and any other
28	28	residents of the named insured's household as provided by this
29	29	subsection. The rejection document must specifically identify each
30	30	person who resides in the named insured's household who is not
31	31	covered under the policy and include the named insured's
32	32	acknowledgement that the policy does not cover the persons
33	33	identified in the rejection document. The rejection document must
34	34	also include a notice that any other resident of the named insured's
35	35	household, regardless of whether the resident is a member of the
36	36	named insured's family, who is not specifically identified in the
37	37	rejection document is not covered under the policy. Unless the
38	38	named insured subsequently requests in writing the coverage
39	39	rejected under this subsection, the insurer is not required to
40	40	provide that coverage in a renewal or reinstated insurance policy
41	41	if the named insured rejected the coverage in writing in connection
42	42	with an insurance policy issued to the insured by the same insurer
43	43	or by an affiliated insurer.
44	44	(d) A policy issued under Subsection (c) must contain a
45	45	notice with each renewal of the policy, or delivery of evidence of
46	46	renewal, in at least 14-point type, that specifically identifies
47	47	the family members residing in the named insured's household and
48	48	other residents of the named insured's household who are not
49	49	covered under the policy and a statement that any other resident of
50	50	the named insured's household, regardless of whether the resident
51	51	is a member of the named insured's family, who is not specifically
52	52	identified in the notice is not covered under the policy.
53	53	(e) This section does not prohibit an insurer from excluding
54	54	from coverage under the policy only the family members residing in
55	55	the named insured's household or other residents of the named
56	56	insured's household who are specifically named as being excluded.
57	57	An exclusion under this subsection must be in writing and must:
58	58	(1) include the name of the person excluded from
59	59	coverage;
60	60	(2) be signed by the named insured; and
61	61	(3) be attached to the policy.
62	62	SECTION 2. The change in law made by this Act applies only
63	63	to an insurance policy delivered, issued for delivery, or renewed
64	64	on or after January 1, 2010. A policy delivered, issued for
65	65	delivery, or renewed before January 1, 2010, is governed by the law
66	66	in effect immediately before the effective date of this Act, and
67	67	that law is continued in effect for that purpose.
68	68	SECTION 3. This Act takes effect September 1, 2009.