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A BILL TO BE ENTITLED
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AN ACT
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relating to permissive driver exclusions for automobile 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 POLICIES |
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Sec. 1952.351. DEFINITION. In this subchapter, "permissive |
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driver exclusion" means a provision or endorsement of an automobile |
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insurance policy that excludes drivers who receive permission from |
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the insured to drive the insured's vehicle from coverage under the |
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policy. |
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Sec. 1952.352. APPLICABILITY. This subchapter applies to |
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an insurer writing automobile insurance in this state, including an |
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insurance company, corporation, reciprocal or interinsurance |
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exchange, mutual insurance company, capital stock company, |
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association, county mutual insurance company, Lloyd's plan, and |
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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 an automobile |
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insurance policy delivered, issued for delivery, or renewed in this |
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state. |
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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) [(2)] 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. The change in law made by this Act applies only |
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to an insurance policy that is delivered, issued for delivery, or |
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renewed on or after January 1, 2014. A policy delivered, issued for |
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delivery, or renewed before January 1, 2014, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2013. |