86R6294 SCL-F
By: Lucio III H.B. No. 2601
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 Subsections (b) and (c) and adding Subsection (c-1) to
read as follows:
(b) Before accepting any premium or fee at the inception or
renewal of [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) Before accepting any premium or fee at the inception or
renewal of [for] a named driver policy, an agent or insurer,
including a county mutual insurance company, must receive a copy of
the disclosure described by Subsection (b) that is signed by the
applicant or insured.
(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repealed.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, 2020. A policy delivered, issued for
delivery, or renewed before January 1, 2020, 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, 2019.