Bill Text: TX HB1773 | 2013-2014 | 83rd Legislature | Engrossed

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

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2013-05-15 - Referred to Business & Commerce [HB1773 Detail]

Download: Texas-2013-HB1773-Engrossed.html

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83R11673 SCL-F
By: Thompson of Brazoria, Miller of Comal, H.B. No. 1773
et al.

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) "Named driver exclusion" means a provision or
endorsement of an automobile insurance policy that excludes
specified drivers from coverage under the policy.
(2) "Named driver policy" means an automobile
insurance policy that provides coverage only for drivers
specifically named on the policy and not for all individuals
residing in a named insured's household, and that may or may not
provide coverage for drivers using a vehicle covered by the policy
with permission and not residing in the insured's household. The
term includes an automobile insurance policy that has been endorsed
to provide coverage only for drivers specifically named on the
policy.
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, a 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.
(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.
Sec. 1952.354. RULES. The commissioner may adopt rules
necessary to implement this subchapter.
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 1952.001, Insurance Code, is amended to
read as follows:
Sec. 1952.001. APPLICABILITY OF CHAPTER. Except as
provided by Sections [Section] 1952.201 and 1952.352, this chapter
applies to an insurer writing automobile insurance in this state,
including an insurance company, corporation, reciprocal or
interinsurance exchange, mutual insurance company, association,
Lloyd's plan, or other insurer.
SECTION 4. 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, 2014. A policy delivered, issued for
delivery, or renewed before January 1, 2014, 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 5. This Act takes effect September 1, 2013.