Bill Text: TX HB1030 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to named driver insurance policies and certain related exclusions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-03-06 - Referred to Insurance [HB1030 Detail]

Download: Texas-2017-HB1030-Introduced.html

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85R4229 SCL-F
By: Muñoz, Jr. H.B. No. 1030

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 persons
living together in the same dwelling, without regard to whether
they are related to each other. The term includes a unit composed
of persons 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 residing 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. (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 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, 2018. A policy delivered, issued for
delivery, or renewed before January 1, 2018, 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, 2017.