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A BILL TO BE ENTITLED
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AN ACT
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relating to liability coverage for certain vehicles provided by |
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certain automobile repair facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is |
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amended by adding Section 1952.060 to read as follows: |
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Sec. 1952.060. REQUIRED PROVISION: LIABILITY COVERAGE FOR |
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TEMPORARY VEHICLES DURING POLICY TERM; PRIMARY COVERAGE REQUIRED. |
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(a) In this section: |
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(1) "Repair facility" means a person who rebuilds, |
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repairs, or services a motor vehicle for consideration or under a |
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warranty, service, or maintenance contract. |
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(2) "Resident relative" means an individual who: |
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(A) resides in the same household as the insured; |
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and |
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(B) is related to the insured within the third |
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degree of consanguinity or affinity as described by Chapter 573, |
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Government Code. |
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(3) "Temporary vehicle" includes a vehicle that is |
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loaned or provided to an insured by an automobile repair facility |
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for the insured's use while the insured's vehicle is at the facility |
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for service, repair, or another reason and is: |
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(A) in the lawful possession of the insured or |
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resident relative of the insured; |
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(B) not owned by the insured, any resident |
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relative of the insured, or any other person residing in the |
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insured's household; and |
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(C) operated by or in the possession of the |
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insured or resident relative of the insured until the vehicle is |
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returned to the repair facility. |
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(b) A personal automobile insurance policy, including a |
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policy issued by a county mutual insurance company, must define |
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temporary vehicle as defined by this section and include in the |
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policy's primary liability coverage primary liability coverage for |
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a temporary vehicle as a covered vehicle during the policy term. |
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(c) Coverage under this section is required only for a |
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vehicle that is: |
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(1) a private passenger automobile; or |
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(2) a pickup, utility vehicle, or van with a gross |
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vehicle weight of 25,000 pounds or less that is not used for the |
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delivery or transportation of goods, materials, or supplies, other |
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than samples, unless: |
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(A) the delivery of the goods, materials, or |
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supplies is not the primary use for which the vehicle is employed; |
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or |
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(B) the vehicle is used for farming or ranching. |
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(d) The coverage required by this section provides primary |
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coverage for the insured's legal liability for bodily injury and |
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property damage and for damage to the temporary vehicle, not excess |
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coverage. The coverage must insure: |
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(1) the person named in the personal automobile |
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insurance policy; and |
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(2) any resident relative of the insured and licensed |
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operator residing in the household except for an individual not |
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covered in a "named driver policy" under Section 1952.0545. |
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(e) The policy limits of a personal automobile insurance |
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policy must be available for the coverage required by this section. |
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SECTION 2. The change in law made by this Act applies only |
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to a personal automobile insurance policy that is delivered, issued |
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for delivery, or renewed on or after January 1, 2020. |
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SECTION 3. This Act takes effect September 1, 2019. |