|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the minimum required term for personal automobile |
|
insurance policies used to demonstrate proof of financial |
|
responsibility. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 1952.054, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1952.054. REQUIRED DISCLOSURES REGARDING CERTAIN |
|
SHORT-TERM POLICIES. (a) An insurance policy or other document |
|
evidencing proof of purchase of a personal automobile insurance |
|
policy written for a term of less than 180 [30] days may not be used |
|
to obtain an original or renewal driver's license, an automobile |
|
registration or license plates, or a motor vehicle inspection |
|
certificate. An insurance policy or other document described by |
|
this subsection must contain the following statement: |
|
TEXAS LAW PROHIBITS USE OF THIS DOCUMENT TO OBTAIN A |
|
MOTOR VEHICLE INSPECTION CERTIFICATE, AN ORIGINAL OR |
|
RENEWAL DRIVER'S LICENSE, OR AN AUTOMOBILE |
|
REGISTRATION OR LICENSE PLATES. |
|
(b) Before accepting any premium or fee for a personal |
|
automobile insurance policy or binder for a term of less than 180 |
|
[30] days, an agent or insurer must make the following written |
|
disclosure to the applicant or insured: |
|
TEXAS LAW PROHIBITS USE OF THIS POLICY OR BINDER TO |
|
OBTAIN A MOTOR VEHICLE INSPECTION CERTIFICATE, AN |
|
ORIGINAL OR RENEWAL DRIVER'S LICENSE, OR AN AUTOMOBILE |
|
REGISTRATION OR LICENSE PLATES. |
|
SECTION 2. Section 1952.054, Insurance Code, as amended by |
|
this Act, applies only to a personal automobile insurance policy |
|
that is delivered, issued for delivery, or renewed on or after |
|
January 1, 2014. A personal automobile insurance policy that is |
|
delivered, issued for delivery, or renewed before January 1, 2014, |
|
is covered by the law in effect at the time the policy was |
|
delivered, issued for delivery, or renewed, and that law is |
|
continued in effect for that purpose. |
|
SECTION 3. This Act takes effect September 1, 2013. |