| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to continuation of automobile insurance coverage for |
|
|
temporary substitute vehicles during a personal automobile |
|
|
insurance policy term. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is |
|
|
amended by adding Section 1952.060 to read as follows: |
|
|
Sec. 1952.060. REQUIRED PROVISION: LIABILITY COVERAGE FOR |
|
|
TEMPORARY SUBSTITUTE VEHICLES DURING POLICY TERM. (a) This |
|
|
section applies to an insurer authorized to write automobile |
|
|
insurance in this state, including an insurance company, reciprocal |
|
|
or interinsurance exchange, mutual insurance company, capital |
|
|
stock company, county mutual insurance company, Lloyd's plan, or |
|
|
other entity. |
|
|
(b) In this section: |
|
|
(1) "Repair facility" means a person that engages in |
|
|
the business of servicing, repairing, or replacing a motor vehicle |
|
|
for consideration or in accordance with a warranty, service |
|
|
contract, or maintenance contract. |
|
|
(2) "Resident relative" means an individual who: |
|
|
(A) resides in the same household as the insured; |
|
|
and |
|
|
(B) is related to the insured within the third |
|
|
degree by consanguinity or affinity, as determined under Chapter |
|
|
573, Government Code. |
|
|
(3) "Temporary substitute vehicle" means a motor |
|
|
vehicle that is: |
|
|
(A) loaned or provided without charge by a repair |
|
|
facility to the insured while a vehicle owned by the insured is |
|
|
being serviced, repaired, or replaced, including a vehicle loaned |
|
|
or provided following the theft of a vehicle owned by the insured; |
|
|
and |
|
|
(B) not owned by the insured, a resident |
|
|
relative, or any individual who resides in the same household as the |
|
|
insured. |
|
|
(c) A personal automobile insurance policy must contain a |
|
|
provision to provide primary liability coverage in accordance with |
|
|
this section for a temporary substitute vehicle during the policy |
|
|
term. |
|
|
(d) Coverage under this section is required only for a |
|
|
vehicle that is: |
|
|
(1) a private passenger automobile; or |
|
|
(2) a pickup, utility vehicle, or van with a gross |
|
|
vehicle weight of 25,000 pounds or less that is not used for the |
|
|
delivery or transportation of goods, materials, or supplies, other |
|
|
than samples, unless: |
|
|
(A) the delivery of the goods, materials, or |
|
|
supplies is not the primary use for which the vehicle is employed; |
|
|
or |
|
|
(B) the vehicle is used for farming or ranching. |
|
|
(e) Coverage under this section must provide primary, not |
|
|
excess, coverage subject to the same financial and territorial |
|
|
limits of the policy, including coverage against damage to a |
|
|
temporary substitute vehicle and against property damage and bodily |
|
|
injury claimed by a third party. |
|
|
(f) Coverage under this section must insure against loss |
|
|
from liability for damages arising out of the use of a temporary |
|
|
substitute vehicle: |
|
|
(1) by the insured; and |
|
|
(2) unless the policy is a named driver policy under |
|
|
Section 1952.0545 that excludes such individuals, by: |
|
|
(A) a licensed resident relative; and |
|
|
(B) any other licensed operator using the vehicle |
|
|
with the express or implied permission of the insured. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to an insurance policy delivered, issued for delivery, or renewed |
|
|
on or after January 1, 2020. An insurance policy delivered, issued |
|
|
for delivery, or renewed before January 1, 2020, is governed by the |
|
|
law in effect immediately before the effective date of this Act, and |
|
|
that law is continued in effect for that purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2019. |