By:  Ratliff                                           S.B. No. 693
       73R1781 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to automobile, homeowner's, and farm and ranch owner's
    1-3  insurance coverage for liability for injuries to a family member.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 21, Texas Motor Vehicle
    1-6  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
    1-7  Statutes), is amended by adding Subsection (b-1) to read as
    1-8  follows:
    1-9        (b-1)  The owner's policy of liability insurance must exclude
   1-10  coverage for the liability of a person insured under the policy for
   1-11  a bodily injury to or death of the insured or a family member of
   1-12  the insured.  For purposes of this subsection, "family member"
   1-13  means:
   1-14              (1)  the spouse of the insured, including a spouse who
   1-15  is not a resident of the insured's household during a period of
   1-16  separation in contemplation of divorce; or
   1-17              (2)  a person who is a resident of the insured's
   1-18  household and who is:
   1-19                    (A)  related to the insured by blood, marriage,
   1-20  or adoption; or
   1-21                    (B)  a ward or foster child of the insured.
   1-22        SECTION 2.  Article 5.06, Insurance Code, is amended by
   1-23  adding Subsection (9) to read as follows:
   1-24        (9)  A policy form adopted under this article must exclude
    2-1  coverage for the liability of an individual insured under the
    2-2  policy for bodily injury to or death of the insured or a family
    2-3  member of the insured.  For purposes of this subsection, "family
    2-4  member" has the meaning assigned by Section 21(b-1), Texas Motor
    2-5  Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
    2-6  Civil Statutes).
    2-7        SECTION 3.  Subchapter C, Chapter 5, Insurance Code, is
    2-8  amended by adding Article 5.35-2 to read as follows:
    2-9        Art. 5.35-2.  LIABILITY COVERAGE FOR FAMILY MEMBER.  (a)  In
   2-10  this article "family member" means a resident of the insured's
   2-11  household who is:
   2-12              (1)  related to the insured; or
   2-13              (2)  under 21 years of age and in the care of:
   2-14                    (A)  the insured; or
   2-15                    (B)  a person who is:
   2-16                          (i)  a resident of the insured's household;
   2-17  and
   2-18                          (ii)  related to the insured.
   2-19        (b)  A policy form adopted under Article 5.35 of this code
   2-20  for homeowner's or farm and ranch owner's insurance must exclude
   2-21  coverage for the liability of a person insured under the policy for
   2-22  bodily injury to or death of the insured or a family member of the
   2-23  insured.
   2-24        SECTION 4.  This Act takes effect September 1, 1993, and
   2-25  applies only to an insurance policy that is delivered, issued for
   2-26  delivery, or renewed on or after January 1, 1994.  A policy that is
   2-27  delivered, issued for delivery, or renewed before January 1, 1994,
    3-1  is governed by the law as it existed immediately before the
    3-2  effective date of this Act, and that law is continued in effect for
    3-3  that purpose.
    3-4        SECTION 5.  The importance of this legislation and the
    3-5  crowded condition of the calendars in both houses create an
    3-6  emergency   and   an   imperative   public   necessity   that   the
    3-7  constitutional rule requiring bills to be read on three several
    3-8  days in each house be suspended, and this rule is hereby suspended.