Bill Text: TX SB1567 | 2013-2014 | 83rd Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to coverage of certain persons under an automobile insurance policy.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2013-06-14 - Effective on 9/1/13 [SB1567 Detail]

Download: Texas-2013-SB1567-Comm_Sub.html

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By: Davis S.B. No. 1567
(In the Senate - Filed March 8, 2013; March 19, 2013, read
first time and referred to Committee on Business and Commerce;
May 1, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 6, Nays 0; May 1, 2013,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1567 By: Watson

A BILL TO BE ENTITLED
AN ACT
relating to coverage of certain persons under an automobile
insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is
amended by adding Sections 1952.0515 and 1952.0545 to read as
follows:
Sec. 1952.0515. REQUIRED COVERAGE. An agent or insurer,
including a county mutual insurance company, may not deliver or
issue for delivery in this state a personal automobile insurance
policy unless the policy provides at least the minimum coverage
specified by Subchapter D, Chapter 601, Transportation Code.
Sec. 1952.0545. REQUIRED DISCLOSURE REGARDING NAMED DRIVER
POLICIES; PERSONS IN INSURED'S HOUSEHOLD. (a) In this section,
"named driver policy" means an automobile insurance policy that
does not provide coverage for an individual residing in a named
insured's household specifically unless the individual is named on
the policy. The term includes an automobile insurance policy that
has been endorsed to provide coverage only for drivers specifically
named on the policy.
(b) Before accepting 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 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 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.
(d) An agent or insurer, including a county mutual insurance
company, that delivers or issues for delivery a named driver policy
in this state shall specifically include in the policy and
conspicuously identify on the front of any proof of insurance
document issued to the insured the required disclosure under
Subsection (b).
SECTION 2. Section 601.081, Transportation Code, is amended
to read as follows:
Sec. 601.081. STANDARD PROOF OF MOTOR VEHICLE LIABILITY
INSURANCE FORM. (a) In this section, "named driver policy" has
the meaning assigned by Section 1952.0545, Insurance Code.
(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; and
(7) for a named driver policy, the required disclosure
under Section 1952.0545, Insurance Code.
SECTION 3. This Act applies only to an insurance policy that
is delivered, issued for delivery, or renewed on or after January 1,
2014. A policy delivered, issued for delivery, or renewed before
January 1, 2014, 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 4. This Act takes effect September 1, 2013.
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