Bill Text: TX SB1567 | 2013-2014 | 83rd Legislature | Enrolled
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-Enrolled.html
| S.B. No. 1567 | ||
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| 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; [ |
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| (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. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 1567 passed the Senate on | ||
| May 6, 2013, by the following vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 1567 passed the House on | ||
| May 22, 2013, by the following vote: Yeas 143, Nays 2, three | ||
| present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
