| 1 | 1 | | By: Jackson S.B. No. 503 |
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| 2 | 2 | | (In the Senate - Filed February 2, 2011; February 17, 2011, |
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| 3 | 3 | | read first time and referred to Committee on Business and Commerce; |
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| 4 | 4 | | March 2, 2011, reported favorably by the following vote: Yeas 7, |
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| 5 | 5 | | Nays 0; March 2, 2011, sent to printer.) |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | relating to coverage for certain towing and storage expenses under |
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| 11 | 11 | | a motor vehicle insurance policy. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Chapter 1952, Insurance Code, is amended by |
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| 14 | 14 | | adding Subchapter H to read as follows: |
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| 15 | 15 | | SUBCHAPTER H. COVERAGE FOR CERTAIN TOWING AND STORAGE CHARGES |
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| 16 | 16 | | Sec. 1952.351. APPLICABILITY OF SUBCHAPTER. This |
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| 17 | 17 | | subchapter applies to any insurer writing automobile insurance in |
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| 18 | 18 | | this state, including a capital stock insurance company, a |
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| 19 | 19 | | reciprocal or interinsurance exchange, a mutual insurance company, |
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| 20 | 20 | | including a county mutual insurance company, a Lloyd's plan, or |
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| 21 | 21 | | another legal entity engaged in the business of automobile |
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| 22 | 22 | | insurance in this state. The term includes: |
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| 23 | 23 | | (1) an affiliate as described by Section 823.003(a) if |
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| 24 | 24 | | that affiliate is authorized to write and is writing automobile |
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| 25 | 25 | | insurance in this state; and |
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| 26 | 26 | | (2) the Texas Automobile Insurance Plan Association |
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| 27 | 27 | | under Chapter 2151. |
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| 28 | 28 | | Sec. 1952.352. COVERAGE FOR TOWING AND STORAGE CHARGES. An |
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| 29 | 29 | | insurer subject to this subchapter that delivers, issues for |
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| 30 | 30 | | delivery, or renews an automobile liability insurance policy in |
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| 31 | 31 | | this state that covers liability arising out of the ownership, |
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| 32 | 32 | | maintenance, or use of a motor vehicle shall include coverage for |
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| 33 | 33 | | reasonable towing expenses and related storage charges assessed in |
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| 34 | 34 | | relation to a vehicle involved in a motor vehicle accident for which |
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| 35 | 35 | | an insured under the policy is liable. |
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| 36 | 36 | | SECTION 2. This Act applies only to an automobile liability |
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| 37 | 37 | | insurance policy that is delivered, issued for delivery, or renewed |
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| 38 | 38 | | on or after January 1, 2012. A policy delivered, issued for |
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| 39 | 39 | | delivery, or renewed before January 1, 2012, is governed by the law |
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| 40 | 40 | | as it existed immediately before the effective date of this Act, and |
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| 41 | 41 | | that law is continued in effect for that purpose. |
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| 42 | 42 | | SECTION 3. This Act takes effect September 1, 2011. |
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| 43 | 43 | | * * * * * |
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