84R22795 SCL-D
 
  By: Sheets H.B. No. 3203
 
  Substitute the following for H.B. No. 3203:
 
  By:  Frullo C.S.H.B. No. 3203
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a named driver policy.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1952.0545, Insurance Code, is amended by
  amending Subsections (a), (b), (c), and (e) and adding Subsections
  (f) and (g) to read as follows:
         (a)  In this section:
               (1)  "Household" means a unit of individuals living
  together in the same dwelling, without regard to whether the
  individuals are related to each other.
               (2)  [,]"Named [named] driver policy" means a personal
  [an] automobile owner's insurance policy that does not provide
  coverage for an individual residing in a named insured's household
  [specifically] unless the individual is specifically named on the
  policy.  The term includes a personal [an automobile] insurance
  policy that has been endorsed to provide coverage only for drivers
  specifically named on the policy. The term does not include:
               (1)  a named non-owner policy or operator's policy; or
               (2)  an owner's policy that provides coverage for each
  individual residing in a named insured's household unless the
  individual is specifically excluded.
         (b)  Before accepting the initial [any] premium or fee for a
  named driver policy, an agent or insurer, including a county mutual
  insurance company, must make the following disclosure, orally or
  [and] in writing, to the applicant or insured:
               WARNING:  A NAMED DRIVER POLICY DOES NOT PROVIDE
  COVERAGE FOR INDIVIDUALS RESIDING IN THE INSURED'S
  HOUSEHOLD THAT ARE NOT NAMED ON THE POLICY.
         (c)  Before accepting the initial [any] premium or fee for a
  named driver policy, an agent or insurer, including a county mutual
  insurance company, must receive a copy of the disclosure described
  by Subsection (b) that is signed by the applicant or insured.
         (e)  The agent or insurer shall require the applicant or
  insured to confirm [contemporaneously] in writing the provision of
  an oral disclosure pursuant to Subsection (b).
         (f)  The agent or insurer is not required to provide the
  disclosure in or supplemental to a reinstated or renewal policy if
  the named insured has previously acknowledged receipt of the
  disclosure in connection with that policy or a personal automobile
  insurance policy previously issued to the insured by the same
  insurer or an affiliated insurer.
         (g)  A signature required by this section must be an original
  or electronic signature executed specifically for each new policy.
  An electronic signature must comply with Chapter 322, Business &
  Commerce Code, and Chapter 35 of this code.
         SECTION 2.  This Act applies only to an insurance policy that
  is delivered, issued for delivery, or renewed on or after the
  effective date of this Act. An insurance policy delivered, issued
  for delivery, or renewed before the effective date of this Act is
  governed by the law as it existed immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
         SECTION 3.  This Act takes effect September 1, 2015.