| 2 | | - | (In the Senate - Filed February 14, 2017; February 28, 2017, |
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| 3 | | - | read first time and referred to Committee on Business & Commerce; |
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| 4 | | - | April 10, 2017, reported adversely, with favorable Committee |
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| 5 | | - | Substitute by the following vote: Yeas 9, Nays 0; April 10, 2017, |
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| 6 | | - | sent to printer.) |
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| 7 | | - | Click here to see the committee vote |
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| 8 | | - | COMMITTEE SUBSTITUTE FOR S.B. No. 878 By: Hancock |
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| 9 | 2 | | |
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| 10 | 3 | | |
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| 11 | 4 | | A BILL TO BE ENTITLED |
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| 12 | 5 | | AN ACT |
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| 13 | 6 | | relating to named driver policy disclosure requirements. |
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| 14 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 8 | | SECTION 1. Section 1952.0545, Insurance Code, is amended by |
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| 16 | 9 | | amending Subsection (b) and adding Subsection (c-1) to read as |
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| 17 | 10 | | follows: |
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| 18 | 11 | | (b) Before accepting any premium or fee for a named driver |
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| 19 | 12 | | policy, an agent or insurer, including a county mutual insurance |
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| 20 | 13 | | company, must make the following disclosure, [orally and] in |
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| 21 | 14 | | writing, to the applicant or insured: |
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| 22 | 15 | | WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE COVERAGE FOR |
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| 23 | 16 | | INDIVIDUALS RESIDING IN THE INSURED'S HOUSEHOLD THAT ARE NOT |
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| 24 | 17 | | NAMED ON THE POLICY. |
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| 25 | 18 | | (c-1) A signature required by this section must be an |
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| 26 | 19 | | original signature or an electronic signature that complies with |
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| 27 | 20 | | Chapter 322, Business & Commerce Code, and Chapter 35 of this code. |
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| 28 | 21 | | SECTION 2. Section 1952.0545(e), Insurance Code, is |
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| 29 | 22 | | repealed. |
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| 30 | 23 | | SECTION 3. The change in law made by this Act applies only |
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| 31 | 24 | | to an insurance policy that is delivered, issued for delivery, or |
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| 32 | 25 | | renewed on or after January 1, 2018. A policy delivered, issued for |
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| 33 | 26 | | delivery, or renewed before January 1, 2018, is governed by the law |
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| 34 | 27 | | as it existed immediately before the effective date of this Act, and |
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| 35 | 28 | | that law is continued in effect for that purpose. |
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| 36 | 29 | | SECTION 4. This Act takes effect September 1, 2017. |
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