Texas 2013 - 83rd Regular

Texas Senate Bill SB1567 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Davis S.B. No. 1567
2	2	(Eiland)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to coverage of certain persons under an automobile
8	8	insurance policy.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is
11	11	amended by adding Sections 1952.0515 and 1952.0545 to read as
12	12	follows:
13	13	Sec. 1952.0515. REQUIRED COVERAGE. An agent or insurer,
14	14	including a county mutual insurance company, may not deliver or
15	15	issue for delivery in this state a personal automobile insurance
16	16	policy unless the policy provides at least the minimum coverage
17	17	specified by Subchapter D, Chapter 601, Transportation Code.
18	18	Sec. 1952.0545. REQUIRED DISCLOSURE REGARDING NAMED DRIVER
19	19	POLICIES; PERSONS IN INSURED'S HOUSEHOLD. (a) In this section,
20	20	"named driver policy" means an automobile insurance policy that
21	21	does not provide coverage for an individual residing in a named
22	22	insured's household specifically unless the individual is named on
23	23	the policy. The term includes an automobile insurance policy that
24	24	has been endorsed to provide coverage only for drivers specifically
25	25	named on the policy.
26	26	(b) Before accepting any premium or fee for a named driver
27	27	policy, an agent or insurer, including a county mutual insurance
28	28	company, must make the following disclosure, orally and in writing,
29	29	to the applicant or insured:
30	30	WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE
31	31	COVERAGE FOR INDIVIDUALS RESIDING IN THE INSURED'S
32	32	HOUSEHOLD THAT ARE NOT NAMED ON THE POLICY.
33	33	(c) Before accepting any premium or fee for a named driver
34	34	policy, an agent or insurer, including a county mutual insurance
35	35	company, must receive a copy of the disclosure described by
36	36	Subsection (b) that is signed by the applicant or insured.
37	37	(d) An agent or insurer, including a county mutual insurance
38	38	company, that delivers or issues for delivery a named driver policy
39	39	in this state shall specifically include in the policy and
40	40	conspicuously identify on the front of any proof of insurance
41	41	document issued to the insured the required disclosure under
42	42	Subsection (b).
43	43	(e) The agent or insurer shall require the applicant or
44	44	insured to confirm contemporaneously in writing the provision of
45	45	oral disclosure pursuant to Subsection (b).
46	46	SECTION 2. Section 601.081, Transportation Code, is amended
47	47	to read as follows:
48	48	Sec. 601.081. STANDARD PROOF OF MOTOR VEHICLE LIABILITY
49	49	INSURANCE FORM. (a) In this section, "named driver policy" has
50	50	the meaning assigned by Section 1952.0545, Insurance Code.
51	51	(b) A standard proof of motor vehicle liability insurance
52	52	form prescribed by the Texas Department of Insurance must include:
53	53	(1) the name of the insurer;
54	54	(2) the insurance policy number;
55	55	(3) the policy period;
56	56	(4) the name and address of each insured;
57	57	(5) the policy limits or a statement that the coverage
58	58	of the policy complies with the minimum amounts of motor vehicle
59	59	liability insurance required by this chapter; [and]
60	60	(6) the make and model of each covered vehicle; and
61	61	(7) for a named driver policy, the required disclosure
62	62	under Section 1952.0545, Insurance Code.
63	63	SECTION 3. This Act applies only to an insurance policy that
64	64	is delivered, issued for delivery, or renewed on or after January 1,
65	65	2014. A policy delivered, issued for delivery, or renewed before
66	66	January 1, 2014, is governed by the law as it existed immediately
67	67	before the effective date of this Act, and that law is continued in
68	68	effect for that purpose.
69	69	SECTION 4. This Act takes effect September 1, 2013.