By: Thompson of Brazoria, et al. H.B. No. 259
        (Senate Sponsor - Hancock)
         (In the Senate - Received from the House April 23, 2019;
  April 24, 2019, read first time and referred to Committee on
  Business & Commerce; May 15, 2019, reported favorably by the
  following vote:  Yeas 7, Nays 0; May 15, 2019, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to named driver insurance policies and certain related
  exclusions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 1952, Insurance Code, is amended by
  adding Subchapter H to read as follows:
  SUBCHAPTER H. NAMED DRIVER POLICIES
         Sec. 1952.351.  DEFINITIONS. In this subchapter:
               (1)  "Household" means a unit composed of individuals
  living together in the same dwelling, without regard to whether
  they are related to each other. The term includes a unit composed
  of individuals living together in:
                     (A)  a home or mobile home;
                     (B)  a duplex unit, apartment unit, or condominium
  unit; or
                     (C)  any dwelling unit in a multiunit residential
  structure.
               (2)  "Named driver exclusion" means a provision or
  endorsement of an automobile insurance policy that excludes
  specified drivers from coverage under the policy.
               (3)  "Named driver policy" means an automobile
  insurance policy that provides any type of coverage for individuals
  named on the policy but that does not provide coverage for every
  individual who has permission to use a covered vehicle and who
  resides in a named insured's household.
               (4)  "Operator's policy" means an automobile insurance
  policy that, in accordance with Section 601.077, Transportation
  Code, provides coverage for the named insured when operating an
  automobile the insured does not own.
         Sec. 1952.352.  APPLICABILITY. This subchapter applies to
  an insurer writing automobile insurance in this state, including an
  insurance company, corporation, reciprocal or interinsurance
  exchange, mutual insurance company, capital stock company,
  association, county mutual insurance company, Lloyd's plan, and any
  other insurer.
         Sec. 1952.353.  NAMED DRIVER POLICIES PROHIBITED; CERTAIN
  NAMED DRIVER EXCLUSIONS AUTHORIZED. (a) An insurer may not
  deliver, issue for delivery, or renew a named driver policy unless
  the named driver policy is an operator's policy.
         (b)  An insurer may use a named driver exclusion only if the
  exclusion specifically names each excluded driver and does not
  exclude a class of drivers and the named insured accepts the
  exclusion in writing.
         SECTION 2.  Section 912.152(a), Insurance Code, is amended
  to read as follows:
         (a)  A county mutual insurance company is subject to:
               (1)  Sections 1952.051-1952.055;
               (2)  Subchapter H, Chapter 1952;
               (3) [(2)]  Subchapter B, Chapter 2002;
               (4) [(3)]  Chapter 2301; and
               (5) [(4)]  Articles 5.06 and 5.35.
         SECTION 3.  Section 601.081(b), Transportation Code, is
  amended to read as follows:
         (b)  A standard proof of motor vehicle liability insurance
  form prescribed by the Texas Department of Insurance must include:
               (1)  the name of the insurer;
               (2)  the insurance policy number;
               (3)  the policy period;
               (4)  the name and address of each insured;
               (5)  the policy limits or a statement that the coverage
  of the policy complies with the minimum amounts of motor vehicle
  liability insurance required by this chapter; and
               (6)  the make and model of each covered vehicle[; and
               [(7)     for a named driver policy, the required
  disclosure under Section 1952.0545, Insurance Code].
         SECTION 4.  Section 1952.0545, Insurance Code, and Section
  601.081(a), Transportation Code, are repealed.
         SECTION 5.  The change in law made by this Act applies only
  to an insurance policy that is delivered, issued for delivery, or
  renewed on or after January 1, 2020. A policy delivered, issued for
  delivery, or renewed before January 1, 2020, 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 6.  This Act takes effect September 1, 2019.
 
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