By: Jackson S.B. No. 503
(In the Senate - Filed February 2, 2011; February 17, 2011,
read first time and referred to Committee on Business and Commerce;
March 2, 2011, reported favorably by the following vote: Yeas 7,
Nays 0; March 2, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to coverage for certain towing and storage expenses under
a motor vehicle insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1952, Insurance Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. COVERAGE FOR CERTAIN TOWING AND STORAGE CHARGES
Sec. 1952.351. APPLICABILITY OF SUBCHAPTER. This
subchapter applies to any insurer writing automobile insurance in
this state, including a capital stock insurance company, a
reciprocal or interinsurance exchange, a mutual insurance company,
including a county mutual insurance company, a Lloyd's plan, or
another legal entity engaged in the business of automobile
insurance in this state. The term includes:
(1) an affiliate as described by Section 823.003(a) if
that affiliate is authorized to write and is writing automobile
insurance in this state; and
(2) the Texas Automobile Insurance Plan Association
under Chapter 2151.
Sec. 1952.352. COVERAGE FOR TOWING AND STORAGE CHARGES. An
insurer subject to this subchapter that delivers, issues for
delivery, or renews an automobile liability insurance policy in
this state that covers liability arising out of the ownership,
maintenance, or use of a motor vehicle shall include coverage for
reasonable towing expenses and related storage charges assessed in
relation to a vehicle involved in a motor vehicle accident for which
an insured under the policy is liable.
SECTION 2. This Act applies only to an automobile liability
insurance policy that is delivered, issued for delivery, or renewed
on or after January 1, 2012. A policy delivered, issued for
delivery, or renewed before January 1, 2012, is governed by the law
as it existed 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, 2011.
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