Texas 2019 - 86th Regular

Texas House Bill HB259 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 259
	1	+	By: Thompson of Brazoria, et al. H.B. No. 259
	2	+	(Senate Sponsor - Hancock)
	3	+	(In the Senate - Received from the House April 23, 2019;
	4	+	April 24, 2019, read first time and referred to Committee on
	5	+	Business & Commerce; May 15, 2019, reported favorably by the
	6	+	following vote: Yeas 7, Nays 0; May 15, 2019, sent to printer.)
	7	+	Click here to see the committee vote
2	8
3	9
	10	+	A BILL TO BE ENTITLED
4	11		AN ACT
5	12		relating to named driver insurance policies and certain related
6	13		exclusions.
7	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	15		SECTION 1. Chapter 1952, Insurance Code, is amended by
9	16		adding Subchapter H to read as follows:
10	17		SUBCHAPTER H. NAMED DRIVER POLICIES
11	18		Sec. 1952.351. DEFINITIONS. In this subchapter:
12	19		(1) "Household" means a unit composed of individuals
13	20		living together in the same dwelling, without regard to whether
14	21		they are related to each other. The term includes a unit composed
15	22		of individuals living together in:
16	23		(A) a home or mobile home;
17	24		(B) a duplex unit, apartment unit, or condominium
18	25		unit; or
19	26		(C) any dwelling unit in a multiunit residential
20	27		structure.
21	28		(2) "Named driver exclusion" means a provision or
22	29		endorsement of an automobile insurance policy that excludes
23	30		specified drivers from coverage under the policy.
24	31		(3) "Named driver policy" means an automobile
25	32		insurance policy that provides any type of coverage for individuals
26	33		named on the policy but that does not provide coverage for every
27	34		individual who has permission to use a covered vehicle and who
28	35		resides in a named insured's household.
29	36		(4) "Operator's policy" means an automobile insurance
30	37		policy that, in accordance with Section 601.077, Transportation
31	38		Code, provides coverage for the named insured when operating an
32	39		automobile the insured does not own.
33	40		Sec. 1952.352. APPLICABILITY. This subchapter applies to
34	41		an insurer writing automobile insurance in this state, including an
35	42		insurance company, corporation, reciprocal or interinsurance
36	43		exchange, mutual insurance company, capital stock company,
37	44		association, county mutual insurance company, Lloyd's plan, and any
38	45		other insurer.
39	46		Sec. 1952.353. NAMED DRIVER POLICIES PROHIBITED; CERTAIN
40	47		NAMED DRIVER EXCLUSIONS AUTHORIZED. (a) An insurer may not
41	48		deliver, issue for delivery, or renew a named driver policy unless
42	49		the named driver policy is an operator's policy.
43	50		(b) An insurer may use a named driver exclusion only if the
44	51		exclusion specifically names each excluded driver and does not
45	52		exclude a class of drivers and the named insured accepts the
46	53		exclusion in writing.
47	54		SECTION 2. Section 912.152(a), Insurance Code, is amended
48	55		to read as follows:
49	56		(a) A county mutual insurance company is subject to:
50	57		(1) Sections 1952.051-1952.055;
51	58		(2) Subchapter H, Chapter 1952;
52	59		(3) [(2)] Subchapter B, Chapter 2002;
53	60		(4) [(3)] Chapter 2301; and
54	61		(5) [(4)] Articles 5.06 and 5.35.
55	62		SECTION 3. Section 601.081(b), Transportation Code, is
56	63		amended to read as follows:
57	64		(b) A standard proof of motor vehicle liability insurance
58	65		form prescribed by the Texas Department of Insurance must include:
59	66		(1) the name of the insurer;
60	67		(2) the insurance policy number;
61	68		(3) the policy period;
62	69		(4) the name and address of each insured;
63	70		(5) the policy limits or a statement that the coverage
64	71		of the policy complies with the minimum amounts of motor vehicle
65	72		liability insurance required by this chapter; and
66	73		(6) the make and model of each covered vehicle[; and
67	74		[(7) for a named driver policy, the required
68	75		disclosure under Section 1952.0545, Insurance Code].
69	76		SECTION 4. Section 1952.0545, Insurance Code, and Section
70	77		601.081(a), Transportation Code, are repealed.
71	78		SECTION 5. The change in law made by this Act applies only
72	79		to an insurance policy that is delivered, issued for delivery, or
73	80		renewed on or after January 1, 2020. A policy delivered, issued for
74	81		delivery, or renewed before January 1, 2020, is governed by the law
75	82		as it existed immediately before the effective date of this Act, and
76	83		that law is continued in effect for that purpose.
77	84		SECTION 6. This Act takes effect September 1, 2019.
78		-	______________________________ ______________________________
79		-	President of the Senate Speaker of the House
80		-	I certify that H.B. No. 259 was passed by the House on April
81		-	17, 2019, by the following vote: Yeas 124, Nays 15, 1 present, not
82		-	voting.
83		-	______________________________
84		-	Chief Clerk of the House
85		-	I certify that H.B. No. 259 was passed by the Senate on May
86		-	17, 2019, by the following vote: Yeas 25, Nays 5, 1 present, not
87		-	voting.
88		-	______________________________
89		-	Secretary of the Senate
90		-	APPROVED: _____________________
91		-	Date
92		-	_____________________
93		-	Governor
	85	+	* * * * *