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A BILL TO BE ENTITLED
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AN ACT
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relating to certain exclusions for personal automobile liability |
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insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1952, Insurance Code, is amended by |
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adding Subchapter H to read as follows: |
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SUBCHAPTER H. PERMISSIVE DRIVER AND SPECIFICALLY NAMED DRIVER |
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EXCLUSIONS |
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Sec. 1952.351. DEFINITIONS. In this subchapter: |
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(1) "Permissive driver exclusion" means a provision or |
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endorsement of a personal automobile liability insurance policy |
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that excludes drivers who do not reside in the insured's household |
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and who receive permission from the insured to drive the insured's |
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vehicle from coverage under the policy. The term does not include a |
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provision or endorsement of a personal automobile liability |
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insurance policy that excludes from coverage: |
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(A) specific named persons; or |
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(B) family members and residents of the insured's |
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household who are not listed as authorized drivers in a provision or |
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endorsement of the policy. |
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(2) "Specifically named driver exclusion" means a |
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provision or endorsement of a personal automobile liability |
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insurance policy that excludes specific named persons from coverage |
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under the policy. |
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Sec. 1952.352. APPLICABILITY. This subchapter applies to |
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an insurer writing personal automobile liability insurance in this |
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state, including an insurance company, corporation, reciprocal or |
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interinsurance exchange, mutual insurance company, capital stock |
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company, association, county mutual insurance company, Lloyd's |
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plan, and other insurer. |
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Sec. 1952.353. PERMISSIVE DRIVER EXCLUSIONS PROHIBITED. An |
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insurer may not use a permissive driver exclusion for a personal |
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automobile liability insurance policy delivered, issued for |
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delivery, or renewed in this state. |
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Sec. 1952.354. REQUIRED DISCLOSURE REGARDING SPECIFICALLY |
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NAMED DRIVER EXCLUSIONS. (a) Before accepting any premium or fee |
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for a policy with a specifically named driver exclusion, an agent or |
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insurer must make the following written disclosure to the applicant |
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or insured: |
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WARNING: THIS POLICY DOES NOT PROVIDE COVERAGE FOR |
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INDIVIDUALS SPECIFICALLY NAMED AS EXCLUDED FROM |
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COVERAGE. |
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(b) An agent or insurer that delivers or issues for delivery |
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a policy in this state with a specifically named driver exclusion |
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shall specifically include in the policy and conspicuously identify |
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on the front of any proof of insurance document issued to the |
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insured the required disclosure under Subsection (a). |
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SECTION 2. Section 912.152(a), Insurance Code, is amended |
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to read as follows: |
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(a) A county mutual insurance company is subject to: |
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(1) Sections 1952.051-1952.055; |
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(2) Subchapter H, Chapter 1952; |
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(3) Subchapter B, Chapter 2002; |
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(4) [(3)] Chapter 2301; and |
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(5) [(4)] Articles 5.06 and 5.35. |
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SECTION 3. Section 1952.001, Insurance Code, is amended to |
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read as follows: |
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Sec. 1952.001. APPLICABILITY OF CHAPTER. Except as |
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provided by Sections [Section] 1952.201 and 1952.352, this chapter |
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applies to an insurer writing automobile insurance in this state, |
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including an insurance company, corporation, reciprocal or |
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interinsurance exchange, mutual insurance company, association, |
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Lloyd's plan, or other insurer. |
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SECTION 4. Section 601.081, Transportation Code, is amended |
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to read as follows: |
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Sec. 601.081. STANDARD PROOF OF MOTOR VEHICLE LIABILITY |
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INSURANCE FORM. (a) In this section, "specifically named driver |
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exclusion" has the meaning assigned by Section 1952.351, Insurance |
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Code. |
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(b) A standard proof of motor vehicle liability insurance |
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form prescribed by the Texas Department of Insurance must include: |
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(1) the name of the insurer; |
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(2) the insurance policy number; |
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(3) the policy period; |
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(4) the name and address of each insured; |
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(5) the policy limits or a statement that the coverage |
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of the policy complies with the minimum amounts of motor vehicle |
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liability insurance required by this chapter; [and] |
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(6) the make and model of each covered vehicle; and |
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(7) for a policy with a specifically named driver |
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exclusion, the required disclosure under Section 1952.354, |
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Insurance Code. |
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SECTION 5. The changes in law made by this Act apply only to |
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a personal automobile liability insurance policy that is delivered, |
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issued for delivery, or renewed on or after January 1, 2014. A |
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policy delivered, issued for delivery, or renewed before January 1, |
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2014, is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 6. This Act takes effect September 1, 2013. |