Bill Text: TX SB1737 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to continuation of automobile insurance coverage for temporary substitute vehicles during a personal automobile insurance policy term.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-14 - Referred to Business & Commerce [SB1737 Detail]

Download: Texas-2019-SB1737-Introduced.html

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2019S0329-1 03/04/19
By: Menéndez S.B. No. 1737

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.