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A BILL TO BE ENTITLED
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AN ACT
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relating to proof of insurance and database requirements for |
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operator's and certain exclusionary automobile insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 601, Transportation Code, |
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is amended by adding Section 601.0815 to read as follows: |
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Sec. 601.0815. PROOF OF MOTOR VEHICLE LIABILITY INSURANCE |
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FORM FOR OPERATOR'S POLICIES AND CERTAIN EXCLUSIONARY POLICIES. |
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(a) This section applies only to a motor vehicle liability |
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insurance policy that: |
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(1) is an operator's policy; or |
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(2) excludes from coverage an individual who has |
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permission to use a covered vehicle from the named insured. |
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(b) The Texas Department of Insurance shall prescribe a |
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proof of insurance form for an operator's policy that includes the |
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information described by Section 601.081 and a statement in |
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24-point font that: |
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(1) states the policy is an operator's policy; and |
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(2) describes any vehicle excluded from coverage. |
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(c) The Texas Department of Insurance shall prescribe a |
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proof of insurance form for a policy described by Subsection (a)(2) |
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that includes the information described by Section 601.081 and a |
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statement in 24-point font that: |
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(1) states the policy excludes certain individuals |
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with permission to use the covered vehicle; |
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(2) names the policyholder; and |
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(3) describes the individuals excluded from coverage, |
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including by name if applicable, and states whether the policy |
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excludes individuals not in the same household as the named |
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insured. |
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(d) The commissioner of insurance may adopt rules necessary |
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to implement this section. |
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SECTION 2. Section 601.454, Transportation Code, is amended |
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by adding Subsection (a-1) to read as follows: |
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(a-1) This subsection applies only to a motor vehicle |
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liability insurance policy that is an operator's policy or excludes |
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from coverage an individual who has permission to use a covered |
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vehicle from the named insured. In addition to the information |
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provided under Subsection (a), an insurance company shall provide |
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to the agent the information described by Section 601.0815(b) or |
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(c), as applicable, for each policy to which this subsection |
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applies that is issued by the insurance company. |
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SECTION 3. This Act takes effect September 1, 2023. |