Bill Text: TX HB3203 | 2015-2016 | 84th Legislature | Comm Sub

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Bill Title: Relating to a named driver policy.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-04-29 - Committee report sent to Calendars [HB3203 Detail]

Download: Texas-2015-HB3203-Comm_Sub.html

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84R22795 SCL-D
By: Sheets H.B. No. 3203
Substitute the following for H.B. No. 3203:
By: Frullo C.S.H.B. No. 3203

A BILL TO BE ENTITLED
AN ACT
relating to a named driver policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1952.0545, Insurance Code, is amended by
amending Subsections (a), (b), (c), and (e) and adding Subsections
(f) and (g) to read as follows:
(a) In this section:
(1) "Household" means a unit of individuals living
together in the same dwelling, without regard to whether the
individuals are related to each other.
(2) [,]"Named [named] driver policy" means a personal
[an] automobile owner's insurance policy that does not provide
coverage for an individual residing in a named insured's household
[specifically] unless the individual is specifically named on the
policy. The term includes a personal [an automobile] insurance
policy that has been endorsed to provide coverage only for drivers
specifically named on the policy. The term does not include:
(1) a named non-owner policy or operator's policy; or
(2) an owner's policy that provides coverage for each
individual residing in a named insured's household unless the
individual is specifically excluded.
(b) Before accepting the initial [any] premium or fee for a
named driver policy, an agent or insurer, including a county mutual
insurance company, must make the following disclosure, orally or
[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 the initial [any] premium or fee 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.
(e) The agent or insurer shall require the applicant or
insured to confirm [contemporaneously] in writing the provision of
an oral disclosure pursuant to Subsection (b).
(f) The agent or insurer is not required to provide the
disclosure in or supplemental to a reinstated or renewal policy if
the named insured has previously acknowledged receipt of the
disclosure in connection with that policy or a personal automobile
insurance policy previously issued to the insured by the same
insurer or an affiliated insurer.
(g) A signature required by this section must be an original
or electronic signature executed specifically for each new policy.
An electronic signature must comply with Chapter 322, Business &
Commerce Code, and Chapter 35 of this code.
SECTION 2. This Act applies only to an insurance policy that
is delivered, issued for delivery, or renewed on or after the
effective date of this Act. An insurance policy delivered, issued
for delivery, or renewed before the effective date of this Act 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 3. This Act takes effect September 1, 2015.