Texas 2013 - 83rd Regular

Texas House Bill HB1773 Compare Versions

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Old	New	Differences
1	1	83R11673 SCL-F
2	2	By: Thompson of Brazoria, Miller of Comal, H.B. No. 1773
3	3	Raymond, et al.
4	4	Substitute the following for H.B. No. 1773:
5	5	By: Bonnen of Galveston C.S.H.B. No. 1773
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to named driver insurance policies and certain related
11	11	exclusions.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Chapter 1952, Insurance Code, is amended by
14	14	adding Subchapter H to read as follows:
15	15	SUBCHAPTER H. NAMED DRIVER POLICIES
16	16	Sec. 1952.351. DEFINITIONS. In this subchapter:
17	17	(1) "Named driver exclusion" means a provision or
18	18	endorsement of an automobile insurance policy that excludes
19	19	specified drivers from coverage under the policy.
20	20	(2) "Named driver policy" means an automobile
21	21	insurance policy that provides coverage only for drivers
22	22	specifically named on the policy and not for all individuals
23	23	residing in a named insured's household, and that may or may not
24	24	provide coverage for drivers using a vehicle covered by the policy
25	25	with permission and not residing in the insured's household. The
26	26	term includes an automobile insurance policy that has been endorsed
27	27	to provide coverage only for drivers specifically named on the
28	28	policy.
29	29	Sec. 1952.352. APPLICABILITY. This subchapter applies to
30	30	an insurer writing automobile insurance in this state, including an
31	31	insurance company, corporation, reciprocal or interinsurance
32	32	exchange, mutual insurance company, capital stock company,
33	33	association, county mutual insurance company, a Lloyd's plan, and
34	34	any other insurer.
35	35	Sec. 1952.353. NAMED DRIVER POLICIES PROHIBITED. (a) An
36	36	insurer may not deliver, issue for delivery, or renew a named driver
37	37	policy.
38	38	(b) An insurer may use a named driver exclusion if the
39	39	exclusion specifically names each excluded driver and does not
40	40	exclude a class of drivers.
41	41	Sec. 1952.354. RULES. The commissioner may adopt rules
42	42	necessary to implement this subchapter.
43	43	SECTION 2. Section 912.152(a), Insurance Code, is amended
44	44	to read as follows:
45	45	(a) A county mutual insurance company is subject to:
46	46	(1) Sections 1952.051-1952.055;
47	47	(2) Subchapter H, Chapter 1952;
48	48	(3) [(2)] Subchapter B, Chapter 2002;
49	49	(4) [(3)] Chapter 2301; and
50	50	(5) [(4)] Articles 5.06 and 5.35.
51	51	SECTION 3. Section 1952.001, Insurance Code, is amended to
52	52	read as follows:
53	53	Sec. 1952.001. APPLICABILITY OF CHAPTER. Except as
54	54	provided by Sections [Section] 1952.201 and 1952.352, this chapter
55	55	applies to an insurer writing automobile insurance in this state,
56	56	including an insurance company, corporation, reciprocal or
57	57	interinsurance exchange, mutual insurance company, association,
58	58	Lloyd's plan, or other insurer.
59	59	SECTION 4. The change in law made by this Act applies only
60	60	to an insurance policy that is delivered, issued for delivery, or
61	61	renewed on or after January 1, 2014. A policy delivered, issued for
62	62	delivery, or renewed before January 1, 2014, is governed by the law
63	63	as it existed immediately before the effective date of this Act, and
64	64	that law is continued in effect for that purpose.
65	65	SECTION 5. This Act takes effect September 1, 2013.