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A BILL TO BE ENTITLED
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AN ACT
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relating to a named driver policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1952.0545, Insurance Code, is amended by |
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amending Subsections (a), (b), (c), and (e) and adding Subsections |
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(f) and (g) to read as follows: |
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(a) In this section: |
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(1) "Household" means a unit of individuals living |
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together in the same dwelling, without regard to whether the |
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individuals are related to each other. |
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(2) [,]"Named [named] driver policy" means a personal |
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[an] automobile owner's insurance policy that does not provide |
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coverage for an individual residing in a named insured's household |
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[specifically] unless the individual is specifically named on the |
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policy. The term includes a personal [an automobile] insurance |
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policy that has been endorsed to provide coverage only for drivers |
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specifically named on the policy. The term does not include: |
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(1) a named non-owner policy or operator's policy; or |
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(2) an owner's policy that provides coverage for each |
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individual residing in a named insured's household unless the |
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individual is specifically excluded. |
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(b) Before accepting the initial [any] premium or fee for a |
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named driver policy, an agent or insurer, including a county mutual |
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insurance company, must make the following disclosure, orally or |
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[and] in writing, to the applicant or insured: |
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WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE |
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COVERAGE FOR INDIVIDUALS RESIDING IN THE INSURED'S |
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HOUSEHOLD THAT ARE NOT NAMED ON THE POLICY. |
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(c) Before accepting the initial [any] premium or fee for a |
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named driver policy, an agent or insurer, including a county mutual |
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insurance company, must receive a copy of the disclosure described |
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by Subsection (b) that is signed by the applicant or insured. |
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(e) The agent or insurer shall require the applicant or |
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insured to confirm [contemporaneously] in writing the provision of |
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an oral disclosure pursuant to Subsection (b). |
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(f) The agent or insurer is not required to provide the |
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disclosure in or supplemental to a reinstated or renewal policy if |
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the named insured has previously acknowledged receipt of the |
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disclosure in connection with that policy or a personal automobile |
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insurance policy previously issued to the insured by the same |
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insurer or an affiliated insurer. |
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(g) A signature required by this section must be an original |
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or electronic signature executed specifically for each new policy. |
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An electronic signature must comply with Chapter 322, Business & |
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Commerce Code, and Chapter 35 of this code. |
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SECTION 2. This Act applies only to an insurance policy that |
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is delivered, issued for delivery, or renewed on or after the |
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effective date of this Act. An insurance policy delivered, issued |
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for delivery, or renewed before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |