By: Van de Putte S.B. No. 1843
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) In addition to applying to the insurers subject to
this chapter under Section 1952.001, this section applies to a
county mutual insurance company.
(b) Except as provided by Subsections (c), (d), and (e), an
insurer may not deliver or issue for delivery in this state a
personal automobile liability insurance policy, including a policy
provided through the Texas Automobile Insurance Plan Association
under Chapter 2151, that covers liability arising out of the
ownership, maintenance, or use of any motor vehicle unless the
policy covers all family members of the named insured residing in
the named insured's household and any other residents of the named
insured's household.
(c) Subsection (b) does not apply if an insurer obtains the
named insured's rejection of the coverage otherwise required under
that subsection, in writing, for all family members of the named
insured residing in the named insured's household and any other
residents of the named insured's household as provided by this
subsection. The rejection document must specifically identify each
person who resides in the named insured's household who is not
covered under the policy and include the named insured's
acknowledgement that the policy does not cover the persons
identified in the rejection document. The rejection document must
also include a notice that any other resident of the named insured's
household, regardless of whether the resident is a member of the
named insured's family, who is not specifically identified in the
rejection document is not covered under the policy. Unless the
named insured subsequently requests in writing the coverage
rejected under this subsection, the insurer is not required to
provide that coverage in a renewal or reinstated insurance policy
if the named insured rejected the coverage in writing in connection
with an insurance policy issued to the insured by the same insurer
or by an affiliated insurer.
(d) A policy issued under Subsection (c) must contain a
notice with each renewal of the policy, or delivery of evidence of
renewal, in at least 14-point type, that specifically identifies
the family members residing in the named insured's household and
other residents of the named insured's household who are not
covered under the policy and a statement that any other resident of
the named insured's household, regardless of whether the resident
is a member of the named insured's family, who is not specifically
identified in the notice is not covered under the policy.
(e) This section does not prohibit an insurer from excluding
from coverage under the policy only the family members residing in
the named insured's household or other residents of the named
insured's household who are specifically named as being excluded.
An exclusion under this subsection 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.