Texas 2013 - 83rd Regular

Texas House Bill HB1810 Compare Versions

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Old	New	Differences
1	1	83R24862 SCL-D
2	2	By: Lucio III H.B. No. 1810
3	3	Substitute the following for H.B. No. 1810:
4	4	By: Smithee C.S.H.B. No. 1810
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to certain exclusions for personal automobile liability
10	10	insurance.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 1952, Insurance Code, is amended by
13	13	adding Subchapter H to read as follows:
14	14	SUBCHAPTER H. PERMISSIVE DRIVER AND SPECIFICALLY NAMED DRIVER
15	15	EXCLUSIONS
16	16	Sec. 1952.351. DEFINITIONS. In this subchapter:
17	17	(1) "Permissive driver exclusion" means a provision or
18	18	endorsement of a personal automobile liability insurance policy
19	19	that excludes drivers who do not reside in the insured's household
20	20	and who receive permission from the insured to drive the insured's
21	21	vehicle from coverage under the policy. The term does not include a
22	22	provision or endorsement of a personal automobile liability
23	23	insurance policy that excludes from coverage:
24	24	(A) specific named persons; or
25	25	(B) family members and residents of the insured's
26	26	household who are not listed as authorized drivers in a provision or
27	27	endorsement of the policy.
28	28	(2) "Specifically named driver exclusion" means a
29	29	provision or endorsement of a personal automobile liability
30	30	insurance policy that excludes specific named persons from coverage
31	31	under the policy.
32	32	Sec. 1952.352. APPLICABILITY. This subchapter applies to
33	33	an insurer writing personal automobile liability insurance in this
34	34	state, including an insurance company, corporation, reciprocal or
35	35	interinsurance exchange, mutual insurance company, capital stock
36	36	company, association, county mutual insurance company, Lloyd's
37	37	plan, and other insurer.
38	38	Sec. 1952.353. PERMISSIVE DRIVER EXCLUSIONS PROHIBITED. An
39	39	insurer may not use a permissive driver exclusion for a personal
40	40	automobile liability insurance policy delivered, issued for
41	41	delivery, or renewed in this state.
42	42	Sec. 1952.354. REQUIRED DISCLOSURE REGARDING SPECIFICALLY
43	43	NAMED DRIVER EXCLUSIONS. (a) Before accepting any premium or fee
44	44	for a policy with a specifically named driver exclusion, an agent or
45	45	insurer must make the following written disclosure to the applicant
46	46	or insured:
47	47	WARNING: THIS POLICY DOES NOT PROVIDE COVERAGE FOR
48	48	INDIVIDUALS SPECIFICALLY NAMED AS EXCLUDED FROM
49	49	COVERAGE.
50	50	(b) An agent or insurer that delivers or issues for delivery
51	51	a policy in this state with a specifically named driver exclusion
52	52	shall specifically include in the policy and conspicuously identify
53	53	on the front of any proof of insurance document issued to the
54	54	insured the required disclosure under Subsection (a).
55	55	SECTION 2. Section 912.152(a), Insurance Code, is amended
56	56	to read as follows:
57	57	(a) A county mutual insurance company is subject to:
58	58	(1) Sections 1952.051-1952.055;
59	59	(2) Subchapter H, Chapter 1952;
60	60	(3) Subchapter B, Chapter 2002;
61	61	(4) [(3)] Chapter 2301; and
62	62	(5) [(4)] Articles 5.06 and 5.35.
63	63	SECTION 3. Section 1952.001, Insurance Code, is amended to
64	64	read as follows:
65	65	Sec. 1952.001. APPLICABILITY OF CHAPTER. Except as
66	66	provided by Sections [Section] 1952.201 and 1952.352, this chapter
67	67	applies to an insurer writing automobile insurance in this state,
68	68	including an insurance company, corporation, reciprocal or
69	69	interinsurance exchange, mutual insurance company, association,
70	70	Lloyd's plan, or other insurer.
71	71	SECTION 4. Section 601.081, Transportation Code, is amended
72	72	to read as follows:
73	73	Sec. 601.081. STANDARD PROOF OF MOTOR VEHICLE LIABILITY
74	74	INSURANCE FORM. (a) In this section, "specifically named driver
75	75	exclusion" has the meaning assigned by Section 1952.351, Insurance
76	76	Code.
77	77	(b) A standard proof of motor vehicle liability insurance
78	78	form prescribed by the Texas Department of Insurance must include:
79	79	(1) the name of the insurer;
80	80	(2) the insurance policy number;
81	81	(3) the policy period;
82	82	(4) the name and address of each insured;
83	83	(5) the policy limits or a statement that the coverage
84	84	of the policy complies with the minimum amounts of motor vehicle
85	85	liability insurance required by this chapter; [and]
86	86	(6) the make and model of each covered vehicle; and
87	87	(7) for a policy with a specifically named driver
88	88	exclusion, the required disclosure under Section 1952.354,
89	89	Insurance Code.
90	90	SECTION 5. The changes in law made by this Act apply only to
91	91	a personal automobile liability insurance policy that is delivered,
92	92	issued for delivery, or renewed on or after January 1, 2014. A
93	93	policy delivered, issued for delivery, or renewed before January 1,
94	94	2014, is governed by the law as it existed immediately before the
95	95	effective date of this Act, and that law is continued in effect for
96	96	that purpose.
97	97	SECTION 6. This Act takes effect September 1, 2013.