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A BILL TO BE ENTITLED
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AN ACT
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relating to named driver insurance policies and certain related |
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exclusions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1952, Insurance Code, is amended by |
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adding Subchapter H to read as follows: |
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SUBCHAPTER H. NAMED DRIVER POLICIES |
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Sec. 1952.351. DEFINITIONS. In this subchapter: |
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(1) "Household" means a unit composed of individuals |
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living together in the same dwelling, without regard to whether |
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they are related to each other. The term includes a unit composed |
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of individuals living together in: |
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(A) a home or mobile home; |
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(B) a duplex unit, apartment unit, or condominium |
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unit; or |
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(C) any dwelling unit in a multiunit residential |
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structure. |
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(2) "Named driver exclusion" means a provision or |
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endorsement of an automobile insurance policy that excludes |
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specified drivers from coverage under the policy. |
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(3) "Named driver policy" means an automobile |
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insurance policy that provides any type of coverage for individuals |
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named on the policy but that does not provide coverage for every |
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individual who has permission to use a covered vehicle and who |
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resides in a named insured's household. |
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(4) "Operator's policy" means an automobile insurance |
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policy that, in accordance with Section 601.077, Transportation |
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Code, provides coverage for the named insured when operating an |
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automobile the insured does not own. |
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Sec. 1952.352. APPLICABILITY. This subchapter applies to |
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an insurer writing automobile insurance in this state, including an |
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insurance company, corporation, reciprocal or interinsurance |
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exchange, mutual insurance company, capital stock company, |
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association, county mutual insurance company, Lloyd's plan, and any |
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other insurer. |
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Sec. 1952.353. NAMED DRIVER POLICIES PROHIBITED; CERTAIN |
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NAMED DRIVER EXCLUSIONS AUTHORIZED. (a) An insurer may not |
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deliver, issue for delivery, or renew a named driver policy unless |
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the named driver policy is an operator's policy. |
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(b) An insurer may use a named driver exclusion only if the |
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exclusion specifically names each excluded driver and does not |
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exclude a class of drivers and the named insured accepts the |
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exclusion in writing. |
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SECTION 2. Section 912.152(a), Insurance Code, is amended |
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to read as follows: |
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(a) A county mutual insurance company is subject to: |
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(1) Sections 1952.051-1952.055; |
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(2) Subchapter H, Chapter 1952; |
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(3) [(2)] Subchapter B, Chapter 2002; |
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(4) [(3)] Chapter 2301; and |
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(5) [(4)] Articles 5.06 and 5.35. |
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SECTION 3. Section 601.081(b), Transportation Code, is |
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amended to read as follows: |
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(b) A standard proof of motor vehicle liability insurance |
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form prescribed by the Texas Department of Insurance must include: |
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(1) the name of the insurer; |
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(2) the insurance policy number; |
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(3) the policy period; |
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(4) the name and address of each insured; |
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(5) the policy limits or a statement that the coverage |
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of the policy complies with the minimum amounts of motor vehicle |
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liability insurance required by this chapter; and |
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(6) the make and model of each covered vehicle[; and
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[(7)
for a named driver policy, the required
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disclosure under Section 1952.0545, Insurance Code]. |
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SECTION 4. Section 1952.0545, Insurance Code, and Section |
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601.081(a), Transportation Code, are repealed. |
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SECTION 5. The change in law made by this Act applies only |
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to an insurance policy that is delivered, issued for delivery, or |
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renewed on or after January 1, 2020. A policy delivered, issued for |
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delivery, or renewed before January 1, 2020, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2019. |
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* * * * * |