By:  Peña                                                  H.B. No. 3379



A BILL TO BE ENTITLED

AN ACT

relating to automobile liability insurance coverage for certain 
persons.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 5, Insurance Code, is 
amended by adding Article 5.06-7 to read as follows:
	Art. 5.06-7. COVERAGE FOR CERTAIN PERSONS AUTOMATIC. (a) An 
automobile liability insurance policy that provides coverage for an 
insured named in the policy and for members of the named insured's 
household covers a person who:
		(1)  is a member of the named insured's household;                     
		(2)  is 24 years of age or younger; and                                
		(3)  drives a motor vehicle owned or insured by the 
named insured.   
	(b)  With reference to an automobile liability insurance 
policy described by Subsection (a), an insurer issuing the policy:
		(1)  may not offer the named insured an exclusion from 
or rejection of coverage for a person described by Subsection (a); 
and
		(2)  shall deliver the named insured written notice 
that coverage under this article:
			(A)  may not be excluded or rejected; and                             
			(B)  may increase the premium paid by the named 
insured for coverage under the policy.
	SECTION 2.  This Act applies only to an automobile liability 
insurance policy that is delivered, issued for delivery, or renewed 
on or after January 1, 2006. An automobile liability insurance 
policy that is delivered, issued for delivery, or renewed before 
January 1, 2006, is governed by the law as it existed immediately 
before the effective date of this Act, and the former law is 
continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.