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A BILL TO BE ENTITLED
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AN ACT
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relating to named driver policy disclosure requirements. |
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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 (b) and (c) and adding Subsection (c-1) to |
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read as follows: |
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(b) Before accepting any premium or fee at the inception or |
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renewal of [for] a named driver policy, an agent or insurer, |
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including a county mutual insurance company, must make the |
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following disclosure, [orally and] in writing, to the applicant or |
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insured: |
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WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE COVERAGE FOR |
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INDIVIDUALS RESIDING IN THE INSURED'S HOUSEHOLD THAT ARE NOT |
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NAMED ON THE POLICY. |
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(c) Before accepting any premium or fee at the inception or |
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renewal of [for] a named driver policy, an agent or insurer, |
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including a county mutual insurance company, must receive a copy of |
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the disclosure described by Subsection (b) that is signed by the |
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applicant or insured. |
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(c-1) A signature required by this section must be an |
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original signature or an electronic signature that complies with |
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Chapter 322, Business & Commerce Code, and Chapter 35 of this code. |
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SECTION 2. Section 1952.0545(e), Insurance Code, is |
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repealed. |
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SECTION 3. 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 4. This Act takes effect September 1, 2019. |