| 6 | 4 | | |
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| 7 | 5 | | |
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| 8 | 6 | | A BILL TO BE ENTITLED |
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| 9 | 7 | | AN ACT |
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| 10 | 8 | | relating to named driver insurance policies and certain related |
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| 11 | 9 | | exclusions. |
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| 12 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 11 | | SECTION 1. Chapter 1952, Insurance Code, is amended by |
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| 14 | 12 | | adding Subchapter H to read as follows: |
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| 15 | 13 | | SUBCHAPTER H. NAMED DRIVER POLICIES |
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| 16 | 14 | | Sec. 1952.351. DEFINITIONS. In this subchapter: |
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| 17 | 15 | | (1) "Household" means a unit composed of persons |
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| 18 | 16 | | living together in the same dwelling, without regard to whether |
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| 19 | 17 | | they are related to each other. The term includes a unit composed |
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| 20 | 18 | | of persons living together in: |
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| 21 | 19 | | (A) a home or mobile home; |
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| 22 | 20 | | (B) a duplex unit, apartment unit, or condominium |
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| 23 | 21 | | unit; or |
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| 24 | 22 | | (C) any dwelling unit in a multiunit residential |
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| 25 | 23 | | structure. |
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| 26 | 24 | | (2) "Named driver exclusion" means a provision or |
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| 27 | 25 | | endorsement of an automobile insurance policy that excludes |
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| 28 | 26 | | specified drivers from coverage under the policy. |
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| 29 | 27 | | (3) "Named driver policy" means an automobile |
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| 30 | 28 | | insurance policy that provides any type of coverage for individuals |
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| 31 | 29 | | named on the policy but that does not provide coverage for every |
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| 32 | 30 | | individual residing in a named insured's household. |
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| 33 | 31 | | (4) "Operator's policy" means an automobile insurance |
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| 34 | 32 | | policy that, in accordance with Section 601.077, Transportation |
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| 35 | 33 | | Code, provides coverage for the named insured when operating an |
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| 36 | 34 | | automobile the insured does not own. |
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| 37 | 35 | | Sec. 1952.352. APPLICABILITY. This subchapter applies to |
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| 38 | 36 | | an insurer writing automobile insurance in this state, including an |
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| 39 | 37 | | insurance company, corporation, reciprocal or interinsurance |
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| 40 | 38 | | exchange, mutual insurance company, capital stock company, |
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| 41 | 39 | | association, county mutual insurance company, Lloyd's plan, and any |
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| 42 | 40 | | other insurer. |
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| 43 | 41 | | Sec. 1952.353. NAMED DRIVER POLICIES PROHIBITED. (a) An |
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| 44 | 42 | | insurer may not deliver, issue for delivery, or renew a named driver |
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| 45 | 43 | | policy unless the named driver policy is an operator's policy. |
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| 46 | 44 | | (b) An insurer may use a named driver exclusion if the |
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| 47 | 45 | | exclusion specifically names each excluded driver and does not |
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| 48 | 46 | | exclude a class of drivers and the named insured accepts the |
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| 49 | 47 | | exclusion in writing. |
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| 50 | 48 | | Sec. 1952.354. RULES. The commissioner may adopt rules |
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| 51 | 49 | | necessary to implement this subchapter. |
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| 52 | 50 | | SECTION 2. Section 912.152(a), Insurance Code, is amended |
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| 53 | 51 | | to read as follows: |
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| 54 | 52 | | (a) A county mutual insurance company is subject to: |
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| 55 | 53 | | (1) Sections 1952.051-1952.055; |
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| 56 | 54 | | (2) Subchapter H, Chapter 1952; |
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| 57 | 55 | | (3) [(2)] Subchapter B, Chapter 2002; |
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| 58 | 56 | | (4) [(3)] Chapter 2301; and |
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| 59 | 57 | | (5) [(4)] Articles 5.06 and 5.35. |
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| 60 | 58 | | SECTION 3. Section 601.081(b), Transportation Code, is |
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| 61 | 59 | | amended to read as follows: |
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| 62 | 60 | | (b) A standard proof of motor vehicle liability insurance |
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| 63 | 61 | | form prescribed by the Texas Department of Insurance must include: |
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| 64 | 62 | | (1) the name of the insurer; |
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| 65 | 63 | | (2) the insurance policy number; |
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| 66 | 64 | | (3) the policy period; |
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| 67 | 65 | | (4) the name and address of each insured; |
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| 68 | 66 | | (5) the policy limits or a statement that the coverage |
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| 69 | 67 | | of the policy complies with the minimum amounts of motor vehicle |
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| 70 | 68 | | liability insurance required by this chapter; and |
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| 71 | 69 | | (6) the make and model of each covered vehicle[; and |
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| 72 | 70 | | [(7) for a named driver policy, the required |
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| 73 | 71 | | disclosure under Section 1952.0545, Insurance Code]. |
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| 74 | 72 | | SECTION 4. Section 1952.0545, Insurance Code, and Section |
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| 75 | 73 | | 601.081(a), Transportation Code, are repealed. |
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| 76 | 74 | | SECTION 5. The change in law made by this Act applies only |
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| 77 | 75 | | to an insurance policy that is delivered, issued for delivery, or |
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| 78 | 76 | | renewed on or after January 1, 2016. A policy delivered, issued for |
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| 79 | 77 | | delivery, or renewed before January 1, 2016, is governed by the law |
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| 80 | 78 | | as it existed immediately before the effective date of this Act, and |
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| 81 | 79 | | that law is continued in effect for that purpose. |
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| 82 | 80 | | SECTION 6. This Act takes effect September 1, 2015. |
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