82R4771 RWG-D

By: Jackson S.B. No. 503

A BILL TO BE ENTITLED

AN ACT

relating to coverage for certain towing and storage expenses under a motor vehicle insurance policy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 1952, Insurance Code, is amended by adding Subchapter H to read as follows:

SUBCHAPTER H. COVERAGE FOR CERTAIN TOWING AND STORAGE CHARGES

Sec. 1952.351. APPLICABILITY OF SUBCHAPTER. This subchapter applies to any insurer writing automobile insurance in this state, including a capital stock insurance company, a reciprocal or interinsurance exchange, a mutual insurance company, including a county mutual insurance company, a Lloyd's plan, or another legal entity engaged in the business of automobile insurance in this state. The term includes:

(1) an affiliate as described by Section 823.003(a) if that affiliate is authorized to write and is writing automobile insurance in this state; and

(2) the Texas Automobile Insurance Plan Association under Chapter 2151.

Sec. 1952.352. COVERAGE FOR TOWING AND STORAGE CHARGES. An insurer subject to this subchapter that delivers, issues for delivery, or renews an automobile liability insurance policy in this state that covers liability arising out of the ownership, maintenance, or use of a motor vehicle shall include coverage for reasonable towing expenses and related storage charges assessed in relation to a vehicle involved in a motor vehicle accident for which an insured under the policy is liable.

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, 2012. A policy delivered, issued for delivery, or renewed before January 1, 2012, 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 3. This Act takes effect September 1, 2011.