By: Keough H.B. No. 318
A BILL TO BE ENTITLED
AN ACT
relating to named driver insurance policies and certain related
exclusions.
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. NAMED DRIVER POLICIES
Sec. 1952.351. DEFINITIONS. In this subchapter:
(1) "Named driver exclusion" means a provision or
endorsement of an automobile insurance policy that excludes named
drivers from coverage under the policy.
(2) "Named driver policy" means an automobile
insurance policy that provides coverage only for drivers
specifically named on the policy and not for individuals residing
in a named insured's household. The term includes an automobile
insurance policy that has been endorsed to provide coverage only
for drivers specifically named on the policy.
Sec. 1952.352. APPLICABILITY. This subchapter applies to
an insurer writing automobile insurance in this state, including an
insurance company, corporation, reciprocal or interinsurance
exchange, mutual insurance company, capital stock company,
association, county mutual insurance company, a Lloyd's plan, and
any other insurer.
Sec. 1952.353. NAMED DRIVER POLICIES PROHIBITED. (a) An
insurer may not deliver, issue for delivery, or renew a named driver
policy.
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) [(2)] 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. The change in law made by this Act applies only
to an insurance policy that is delivered, issued for delivery, or
renewed on or after January 1, 2016. A policy delivered, issued for
delivery, or renewed before January 1, 2016, 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 5. This Act takes effect September 1, 2015.