Bill Text: TX HB3420 | 2019-2020 | 86th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to liability coverage for certain vehicles provided by certain automobile repair facilities.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Passed) 2019-06-15 - Effective on 9/1/19 [HB3420 Detail]
Download: Texas-2019-HB3420-Comm_Sub.html
Bill Title: Relating to liability coverage for certain vehicles provided by certain automobile repair facilities.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Passed) 2019-06-15 - Effective on 9/1/19 [HB3420 Detail]
Download: Texas-2019-HB3420-Comm_Sub.html
By: Lambert, Raney (Senate Sponsor - Menéndez) | H.B. No. 3420 | |
(In the Senate - Received from the House May 6, 2019; | ||
May 10, 2019, read first time and referred to Committee on Business & | ||
Commerce; May 20, 2019, reported favorably by the following vote: | ||
Yeas 9, Nays 0; May 20, 2019, sent to printer.) | ||
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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, or another reason 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 25,000 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. | ||
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