83R5978 MEW-D
By: Davis S.B. No. 1568
A BILL TO BE ENTITLED
AN ACT
relating to the minimum required term for personal automobile
insurance policies used to demonstrate proof of financial
responsibility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1952.054, Insurance Code, is amended to
read as follows:
Sec. 1952.054. REQUIRED DISCLOSURES REGARDING CERTAIN
SHORT-TERM POLICIES. (a) An insurance policy or other document
evidencing proof of purchase of a personal automobile insurance
policy written for a term of less than 180 [30] days may not be used
to obtain an original or renewal driver's license, an automobile
registration or license plates, or a motor vehicle inspection
certificate. An insurance policy or other document described by
this subsection must contain the following statement:
TEXAS LAW PROHIBITS USE OF THIS DOCUMENT TO OBTAIN A
MOTOR VEHICLE INSPECTION CERTIFICATE, AN ORIGINAL OR
RENEWAL DRIVER'S LICENSE, OR AN AUTOMOBILE
REGISTRATION OR LICENSE PLATES.
(b) Before accepting any premium or fee for a personal
automobile insurance policy or binder for a term of less than 180
[30] days, an agent or insurer must make the following written
disclosure to the applicant or insured:
TEXAS LAW PROHIBITS USE OF THIS POLICY OR BINDER TO
OBTAIN A MOTOR VEHICLE INSPECTION CERTIFICATE, AN
ORIGINAL OR RENEWAL DRIVER'S LICENSE, OR AN AUTOMOBILE
REGISTRATION OR LICENSE PLATES.
SECTION 2. Section 1952.054, Insurance Code, as amended by
this Act, applies only to a personal automobile insurance policy
that is delivered, issued for delivery, or renewed on or after
January 1, 2014. A personal automobile insurance policy that is
delivered, issued for delivery, or renewed before January 1, 2014,
is covered by the law in effect at the time the policy was
delivered, issued for delivery, or renewed, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.