83R16677 AJA-D
By: Smithee, Thompson of Harris, Alonzo H.B. No. 949
A BILL TO BE ENTITLED
AN ACT
relating to continuation of automobile insurance coverage for
certain motor vehicles acquired during a personal automobile
insurance policy term.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1952.001, Insurance Code, is amended to
read as follows:
Sec. 1952.001. APPLICABILITY OF CHAPTER. Except as
otherwise provided by this chapter [Section 1952.201], 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 2. Subchapter B, Chapter 1952, Insurance Code, is
amended by adding Section 1952.059 to read as follows:
Sec. 1952.059. REQUIRED PROVISION: COVERAGE FOR CERTAIN
VEHICLES ACQUIRED DURING POLICY TERM. (a) This section applies to
an insurer authorized to write automobile insurance in this state,
including an insurance company, reciprocal or interinsurance
exchange, mutual insurance company, capital stock company, county
mutual insurance company, Lloyd's plan, or other entity.
(b) A personal automobile insurance policy must contain a
provision defining a covered vehicle in accordance with this
section for a motor vehicle acquired by the insured during the
policy term.
(c) Coverage under this section is required only for a
vehicle that is:
(1) a private passenger automobile; or
(2) a pickup, utility vehicle, or van with a gross
vehicle weight of 30,000 pounds or less that is not used for the
delivery or transportation of goods, materials, or supplies, other
than samples, unless:
(A) the delivery of the goods, materials, or
supplies is not the primary use for which the vehicle is employed;
or
(B) the vehicle is used for farming or ranching.
(d) Coverage under this section is required only for a
vehicle that is acquired during the policy term and of which the
insurer is notified on or before:
(1) the 20th day after the date on which the insured
becomes the owner of the vehicle; or
(2) a later date specified by the policy.
(e) Coverage under this section for a vehicle that replaces
a covered vehicle shown in the declarations for the policy must be
the same as the coverage for the vehicle being replaced. An insured
must notify the insurer of a replacement vehicle during the time
prescribed by Subsection (d) only if the insured wishes to:
(1) add coverage for damage to the vehicle; or
(2) continue existing coverage for damage to the
vehicle after the period prescribed by Subsection (d) expires.
(f) Coverage under this section for a vehicle that is
acquired during the policy term in addition to the covered vehicles
shown in the declarations for the policy and of which the insurer is
notified as prescribed by Subsection (d) must be the broadest
coverage provided under the policy for any covered vehicle shown in
the declarations.
SECTION 3. The change in law made by this Act applies only
to an insurance policy delivered, issued for delivery, or renewed
on or after January 1, 2014. An insurance policy delivered, issued
for delivery, or renewed before January 1, 2014, is governed by the
law in effect immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2013.