Bill Text: TX SB878 | 2017-2018 | 85th Legislature | Comm Sub

Texas Senate Bill 878 (Prior Session Legislation)

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

Bill Title: Relating to named driver policy disclosure requirements.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2017-05-15 - Referred to Insurance [SB878 Detail]

Download: Texas-2017-SB878-Comm_Sub.html



	By: Hancock	S.B. No. 878
	(In the Senate - Filed February 14, 2017; February 28, 2017,
	read first time and referred to Committee on Business & Commerce;
	April 10, 2017, reported adversely, with favorable Committee
	Substitute by the following vote: Yeas 9, Nays 0; April 10, 2017,
	sent to printer.)
Click here to see the committee vote

	COMMITTEE SUBSTITUTE FOR S.B. No. 878	By: Hancock


	A BILL TO BE ENTITLED
	AN ACT

	relating to named driver policy disclosure requirements.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 1952.0545, Insurance Code, is amended by
	amending Subsection (b) and adding Subsection (c-1) to read as
	follows:
	(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-1) A signature required by this section must be an
	original signature or an electronic signature that complies with
	Chapter 322, Business & Commerce Code, and Chapter 35 of this code.
	SECTION 2. Section 1952.0545(e), Insurance Code, is
	repealed.
	SECTION 3. The change in law made by this Act applies only
	to an insurance policy that is delivered, issued for delivery, or
	renewed on or after January 1, 2018. A policy delivered, issued for
	delivery, or renewed before January 1, 2018, 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, 2017.

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