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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Engrossed.html
 
 
  By: Davis S.B. No. 1567
 
 
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).
         (e)  The agent or insurer shall require the applicant or
  insured to confirm contemporaneously in writing the provision of
  oral disclosure pursuant to 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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