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A BILL TO BE ENTITLED
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AN ACT
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relating to required disclosures regarding named driver automobile |
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insurance policies. |
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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 to |
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read as follows: |
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Sec. 1952.0545. REQUIRED DISCLOSURE REGARDING NAMED DRIVER |
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POLICIES; PERSONS IN INSURED'S HOUSEHOLD. (a) In this section, |
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"named driver policy" means an automobile insurance policy that |
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does not provide coverage for an individual residing in a named |
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insured's household specifically unless the individual is named on |
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the policy. The term includes an automobile insurance policy that |
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has been endorsed to provide coverage only for drivers specifically |
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named on the policy. |
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(b) Before accepting any premium or fee for a named driver |
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policy, an agent or insurer, including a county mutual insurance |
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company, must make the following disclosure [, orally and] in |
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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 any premium or fee for a named driver |
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policy, an agent or insurer, including a county mutual insurance |
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company, must receive a copy of the disclosure described by |
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Subsection (b) that is signed by the applicant or insured. |
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(d) An agent or insurer, including a county mutual insurance |
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company, that delivers or issues for delivery a named driver policy |
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in this state shall specifically include in the policy and |
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conspicuously identify on the front of any proof of insurance |
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document issued to the insured the required disclosure under |
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Subsection (b). |
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[(c)
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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oral disclosure pursuant to Subsection (b).] |
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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 September |
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1, 2015. A policy delivered, issued for delivery, or renewed before |
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September 1, 2015, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |