By: Hancock S.B. No. 878
(In the Senate - Filed February 14, 2017; February 28, 2017,
read first time and referred to Committee on Business & Commerce;
April 10, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 10, 2017,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 878 By: Hancock
A BILL TO BE ENTITLED
AN ACT
relating to named driver policy disclosure requirements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1952.0545, Insurance Code, is amended by
amending Subsection (b) and adding Subsection (c-1) to read as
follows:
(b) Before accepting any premium or fee for a named driver
policy, an agent or insurer, including a county mutual insurance
company, must make the following disclosure, [orally and] in
writing, to the applicant or insured:
WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE COVERAGE FOR
INDIVIDUALS RESIDING IN THE INSURED'S HOUSEHOLD THAT ARE NOT
NAMED ON THE POLICY.
(c-1) A signature required by this section must be an
original signature or an electronic signature that complies with
Chapter 322, Business & Commerce Code, and Chapter 35 of this code.
SECTION 2. Section 1952.0545(e), Insurance Code, is
repealed.
SECTION 3. 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, 2018. A policy delivered, issued for
delivery, or renewed before January 1, 2018, 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 4. This Act takes effect September 1, 2017.
* * * * *