83R24862 SCL-D
By: Lucio III H.B. No. 1810
Substitute the following for H.B. No. 1810:
By: Smithee C.S.H.B. No. 1810
A BILL TO BE ENTITLED
AN ACT
relating to certain exclusions for personal automobile liability
insurance.
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. PERMISSIVE DRIVER AND SPECIFICALLY NAMED DRIVER
EXCLUSIONS
Sec. 1952.351. DEFINITIONS. In this subchapter:
(1) "Permissive driver exclusion" means a provision or
endorsement of a personal automobile liability insurance policy
that excludes drivers who do not reside in the insured's household
and who receive permission from the insured to drive the insured's
vehicle from coverage under the policy. The term does not include a
provision or endorsement of a personal automobile liability
insurance policy that excludes from coverage:
(A) specific named persons; or
(B) family members and residents of the insured's
household who are not listed as authorized drivers in a provision or
endorsement of the policy.
(2) "Specifically named driver exclusion" means a
provision or endorsement of a personal automobile liability
insurance policy that excludes specific named persons from coverage
under the policy.
Sec. 1952.352. APPLICABILITY. This subchapter applies to
an insurer writing personal automobile liability insurance in this
state, including an insurance company, corporation, reciprocal or
interinsurance exchange, mutual insurance company, capital stock
company, association, county mutual insurance company, Lloyd's
plan, and other insurer.
Sec. 1952.353. PERMISSIVE DRIVER EXCLUSIONS PROHIBITED. An
insurer may not use a permissive driver exclusion for a personal
automobile liability insurance policy delivered, issued for
delivery, or renewed in this state.
Sec. 1952.354. REQUIRED DISCLOSURE REGARDING SPECIFICALLY
NAMED DRIVER EXCLUSIONS. (a) Before accepting any premium or fee
for a policy with a specifically named driver exclusion, an agent or
insurer must make the following written disclosure to the applicant
or insured:
WARNING: THIS POLICY DOES NOT PROVIDE COVERAGE FOR
INDIVIDUALS SPECIFICALLY NAMED AS EXCLUDED FROM
COVERAGE.
(b) An agent or insurer that delivers or issues for delivery
a policy in this state with a specifically named driver exclusion
shall specifically include in the policy and conspicuously identify
on the front of any proof of insurance document issued to the
insured the required disclosure under Subsection (a).
SECTION 2. Section 912.152(a), Insurance Code, is amended
to read as follows:
(a) A county mutual insurance company is subject to:
(1) Sections 1952.051-1952.055;
(2) Subchapter H, Chapter 1952;
(3) Subchapter B, Chapter 2002;
(4) [(3)] Chapter 2301; and
(5) [(4)] Articles 5.06 and 5.35.
SECTION 3. Section 1952.001, Insurance Code, is amended to
read as follows:
Sec. 1952.001. APPLICABILITY OF CHAPTER. Except as
provided by Sections [Section] 1952.201 and 1952.352, this chapter
applies to an insurer writing automobile insurance in this state,
including an insurance company, corporation, reciprocal or
interinsurance exchange, mutual insurance company, association,
Lloyd's plan, or other insurer.
SECTION 4. Section 601.081, Transportation Code, is amended
to read as follows:
Sec. 601.081. STANDARD PROOF OF MOTOR VEHICLE LIABILITY
INSURANCE FORM. (a) In this section, "specifically named driver
exclusion" has the meaning assigned by Section 1952.351, Insurance
Code.
(b) A standard proof of motor vehicle liability insurance
form prescribed by the Texas Department of Insurance must include:
(1) the name of the insurer;
(2) the insurance policy number;
(3) the policy period;
(4) the name and address of each insured;
(5) the policy limits or a statement that the coverage
of the policy complies with the minimum amounts of motor vehicle
liability insurance required by this chapter; [and]
(6) the make and model of each covered vehicle; and
(7) for a policy with a specifically named driver
exclusion, the required disclosure under Section 1952.354,
Insurance Code.
SECTION 5. The changes in law made by this Act apply only to
a personal automobile liability insurance policy that is delivered,
issued for delivery, or renewed on or after January 1, 2014. A
policy delivered, issued for delivery, or renewed before January 1,
2014, 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 6. This Act takes effect September 1, 2013.