Bill Text: TX HB3420 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to liability coverage for certain vehicles provided by certain automobile repair facilities.
Sponsorship: Slight Partisan Bill (Republican 3-1)
Status: (Passed) 2019-06-15 - Effective on 9/1/19 [HB3420 Detail]
Download: Texas-2019-HB3420-Enrolled.html
| H.B. No. 3420 | ||
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| relating to liability coverage for certain vehicles provided by | ||
| certain automobile repair facilities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is | ||
| amended by adding Section 1952.060 to read as follows: | ||
| Sec. 1952.060. REQUIRED PROVISION: LIABILITY COVERAGE FOR | ||
| TEMPORARY VEHICLES DURING POLICY TERM; PRIMARY COVERAGE REQUIRED. | ||
| (a) In this section: | ||
| (1) "Repair facility" means a person who rebuilds, | ||
| repairs, or services a motor vehicle for consideration or under a | ||
| warranty, service, or maintenance contract. | ||
| (2) "Resident relative" means an individual who: | ||
| (A) resides in the same household as the insured; | ||
| and | ||
| (B) is related to the insured within the third | ||
| degree of consanguinity or affinity as described by Chapter 573, | ||
| Government Code. | ||
| (3) "Temporary vehicle" includes a vehicle that is | ||
| loaned or provided to an insured by an automobile repair facility | ||
| for the insured's use while the insured's vehicle is at the facility | ||
| for service, repair, maintenance, or damage or to obtain an | ||
| estimate and is: | ||
| (A) in the lawful possession of the insured or | ||
| resident relative of the insured; | ||
| (B) not owned by the insured, any resident | ||
| relative of the insured, or any other person residing in the | ||
| insured's household; and | ||
| (C) operated by or in the possession of the | ||
| insured or resident relative of the insured until the vehicle is | ||
| returned to the repair facility. | ||
| (b) A personal automobile insurance policy, including a | ||
| policy issued by a county mutual insurance company, must define | ||
| temporary vehicle as defined by this section and include in the | ||
| policy's primary liability coverage primary liability coverage for | ||
| a temporary vehicle as a covered vehicle during the policy term. | ||
| (c) Coverage under this section is required only for a | ||
| vehicle that is: | ||
| (1) a private passenger automobile; or | ||
| (2) a pickup, utility vehicle, or van with a gross | ||
| vehicle weight of 14,000 pounds or less that is not used for the | ||
| delivery or transportation of goods, materials, or supplies, other | ||
| than samples, unless: | ||
| (A) the delivery of the goods, materials, or | ||
| supplies is not the primary use for which the vehicle is employed; | ||
| or | ||
| (B) the vehicle is used for farming or ranching. | ||
| (d) The coverage required by this section provides primary | ||
| coverage for the insured's legal liability for bodily injury and | ||
| property damage and for damage to the temporary vehicle, not excess | ||
| coverage. The coverage must insure: | ||
| (1) the person named in the personal automobile | ||
| insurance policy; and | ||
| (2) any resident relative of the insured and licensed | ||
| operator residing in the household except for an individual not | ||
| covered in a "named driver policy" under Section 1952.0545. | ||
| (e) The policy limits of a personal automobile insurance | ||
| policy must be available for the coverage required by this section. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to a personal automobile insurance policy that is delivered, issued | ||
| for delivery, or renewed on or after January 1, 2020. | ||
| SECTION 3. This Act takes effect September 1, 2019. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I certify that H.B. No. 3420 was passed by the House on May 3, | ||
| 2019, by the following vote: Yeas 129, Nays 13, 1 present, not | ||
| voting; and that the House concurred in Senate amendments to H.B. | ||
| No. 3420 on May 24, 2019, by the following vote: Yeas 130, Nays 11, | ||
| 2 present, not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 3420 was passed by the Senate, with | ||
| amendments, on May 21, 2019, by the following vote: Yeas 28, Nays | ||
| 3. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: __________________ | ||
| Date | ||
| __________________ | ||
| Governor | ||
