Relating to named driver insurance policies and certain related exclusions.
Impact
The bill adjusts the existing framework governing auto insurance policies, addressing a gap that could leave drivers vulnerable if only certain individuals are named under their insurance policies. By mandating that insurers either issue comprehensive operator's policies or use exclusions that accurately name excluded drivers, it ensures greater transparency and accountability, thus enhancing consumer protection in the automotive insurance market. This approach also sets a precedent for regulating other forms of insurance in the future.
Summary
SB923 pertains to the regulation of 'named driver' insurance policies within the Texas Insurance Code. Specifically, it outlines definitions and provisions related to such policies, aiming to protect consumers from insufficient coverage when only 'named drivers' are insured under an automobile policy. The legislation introduces clear guidelines that insurers must follow, particularly prohibiting the issuance or renewal of named driver policies unless they qualify as operator's policies, which provide broader coverage for the named insured when driving various vehicles.
Contention
Notable points of contention surrounding SB923 include the implications for insurance companies and how this legislation might influence pricing and accessibility of motor vehicle insurance. Critics argue that stricter regulations might lead to higher premiums as insurers adjust their policy structures to comply with the new provisions. Proponents believe that the consumer protections afforded by the bill justify these changes, prioritizing the need for adequate coverage over potentially increased costs.
Relating to a pool for certain individuals with claims against persons excluded from coverage by certain automobile insurance policies; authorizing an assessment.