Bill Text: TX HB259 | 2019-2020 | 86th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to named driver insurance policies and certain related exclusions.
Spectrum: Slight Partisan Bill (Republican 15-8)
Status: (Passed) 2019-06-05 - Effective on 9/1/19 [HB259 Detail]
Download: Texas-2019-HB259-Comm_Sub.html
Bill Title: Relating to named driver insurance policies and certain related exclusions.
Spectrum: Slight Partisan Bill (Republican 15-8)
Status: (Passed) 2019-06-05 - Effective on 9/1/19 [HB259 Detail]
Download: Texas-2019-HB259-Comm_Sub.html
86R15265 SCL-F | |||
By: Thompson of Brazoria, Bonnen of Galveston, | H.B. No. 259 | ||
J. Johnson of Dallas, Turner of Tarrant, | |||
Paul, et al. | |||
Substitute the following for H.B. |
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relating to named driver insurance policies and certain related | ||
exclusions. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 1952, Insurance Code, is amended by | ||
adding Subchapter H to read as follows: | ||
SUBCHAPTER H. NAMED DRIVER POLICIES | ||
Sec. 1952.351. DEFINITIONS. In this subchapter: | ||
(1) "Household" means a unit composed of individuals | ||
living together in the same dwelling, without regard to whether | ||
they are related to each other. The term includes a unit composed | ||
of individuals living together in: | ||
(A) a home or mobile home; | ||
(B) a duplex unit, apartment unit, or condominium | ||
unit; or | ||
(C) any dwelling unit in a multiunit residential | ||
structure. | ||
(2) "Named driver exclusion" means a provision or | ||
endorsement of an automobile insurance policy that excludes | ||
specified drivers from coverage under the policy. | ||
(3) "Named driver policy" means an automobile | ||
insurance policy that provides any type of coverage for individuals | ||
named on the policy but that does not provide coverage for every | ||
individual who has permission to use a covered vehicle and who | ||
resides in a named insured's household. | ||
(4) "Operator's policy" means an automobile insurance | ||
policy that, in accordance with Section 601.077, Transportation | ||
Code, provides coverage for the named insured when operating an | ||
automobile the insured does not own. | ||
Sec. 1952.352. APPLICABILITY. This subchapter applies to | ||
an insurer writing automobile insurance in this state, including an | ||
insurance company, corporation, reciprocal or interinsurance | ||
exchange, mutual insurance company, capital stock company, | ||
association, county mutual insurance company, Lloyd's plan, and any | ||
other insurer. | ||
Sec. 1952.353. NAMED DRIVER POLICIES PROHIBITED; CERTAIN | ||
NAMED DRIVER EXCLUSIONS AUTHORIZED. (a) An insurer may not | ||
deliver, issue for delivery, or renew a named driver policy unless | ||
the named driver policy is an operator's policy. | ||
(b) An insurer may use a named driver exclusion only if the | ||
exclusion specifically names each excluded driver and does not | ||
exclude a class of drivers and the named insured accepts the | ||
exclusion in writing. | ||
SECTION 2. Section 912.152(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) A county mutual insurance company is subject to: | ||
(1) Sections 1952.051-1952.055; | ||
(2) Subchapter H, Chapter 1952; | ||
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SECTION 3. Section 601.081(b), Transportation Code, is | ||
amended to read as follows: | ||
(b) A standard proof of motor vehicle liability insurance | ||
form prescribed by the Texas Department of Insurance must include: | ||
(1) the name of the insurer; | ||
(2) the insurance policy number; | ||
(3) the policy period; | ||
(4) the name and address of each insured; | ||
(5) the policy limits or a statement that the coverage | ||
of the policy complies with the minimum amounts of motor vehicle | ||
liability insurance required by this chapter; and | ||
(6) the make and model of each covered vehicle[ |
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SECTION 4. Section 1952.0545, Insurance Code, and Section | ||
601.081(a), Transportation Code, are repealed. | ||
SECTION 5. 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 6. This Act takes effect September 1, 2019. |