TITLE: Relating to coverage of household residents under a personal automobile insurance policy.

SUMMARY: Relating to coverage of household residents under a personal automobile insurance policy.

FULL TEXT:
AN ACT relating to coverage of household residents under a personal automobile insurance policy. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is amended by adding Section 1952.059 to read as follows: Sec. 1952.059. REQUIRED OFFER: EXCLUSION OF NAMED DRIVERS. (a) In addition to applying to the insurers subject to this chapter under Section 1952.001, this section applies to a county mutual insurance company. (b) An insurer that delivers or issues for delivery in this state a personal automobile insurance policy, including a policy provided through the Texas Automobile Insurance Plan Association under Chapter 2151, that covers liability arising out of the ownership, maintenance, or use of a motor vehicle and that would otherwise cover all residents in the named insured's household must offer the insured a provision that would exclude from coverage under the policy any resident of the named insured's household who is specifically named as being excluded. (c) An exclusion under this section must be in writing and must: (1) include the name of the person excluded from coverage; (2) be signed by the named insured; and (3) be attached to the policy. 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, 2012. A policy delivered, issued for delivery, or renewed before January 1, 2012, 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, 2011.