Honorable John T. Smithee, Chair, House Committee on Insurance
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB1773 by Thompson, Ed (Relating to named driver insurance policies and certain related exclusions.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would amend the Insurance Code relating to named driver insurance policies and certain related exclusions. The bill would prohibit an insurer from providing or renewing a named driver automobile policy, which the bill defines as an insurance policy that provides coverage only for drivers specifically named on the policy. However, the bill would allow insurers to use a named driver exclusion if the exclusion specifically names each excluded driver and does not exclude a class of drivers.
The bill would apply to an insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2014.
Based on information provided by the Texas Department of Insurance, it is assumed that any costs associated with the implementation of this bill would be absorbed within existing staff and resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.