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A BILL TO BE ENTITLED
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AN ACT
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relating to continuation of automobile insurance coverage for |
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certain motor vehicles acquired during a personal automobile |
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insurance policy term. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1952.001, Insurance Code, is amended to |
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read as follows: |
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Sec. 1952.001. APPLICABILITY OF CHAPTER. Except as |
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otherwise provided by this chapter [Section 1952.201], this chapter |
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applies to an insurer writing automobile insurance in this state, |
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including an insurance company, corporation, reciprocal or |
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interinsurance exchange, mutual insurance company, association, |
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Lloyd's plan, or other insurer. |
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SECTION 2. Subchapter B, Chapter 1952, Insurance Code, is |
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amended by adding Section 1952.059 to read as follows: |
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Sec. 1952.059. REQUIRED PROVISION: COVERAGE FOR CERTAIN |
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VEHICLES ACQUIRED DURING POLICY TERM. (a) This section applies to |
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an insurer authorized to write automobile insurance in this state, |
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including an insurance company, reciprocal or interinsurance |
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exchange, mutual insurance company, capital stock company, county |
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mutual insurance company, Lloyd's plan, or other entity. |
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(b) A personal automobile insurance policy must contain a |
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provision to provide coverage in accordance with this section for a |
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motor vehicle acquired by the insured during the policy term. |
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(c) Coverage under this section is required only for a |
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vehicle that is: |
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(1) a private passenger automobile; or |
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(2) a pickup or van with a gross vehicle weight of |
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10,000 pounds or less that is not used for the delivery or |
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transportation of goods, materials, or supplies, other than |
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samples, unless: |
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(A) the delivery of the goods, materials, or |
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supplies is not the primary use for which the vehicle is employed; |
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or |
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(B) the vehicle is used for farming or ranching. |
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(d) Except as provided by Subsection (e), coverage under |
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this section is required only for a vehicle of which the insurer is |
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notified on or before the 30th day after the date on which the |
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insured becomes the owner of the vehicle. |
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(e) Coverage under this section for a vehicle that replaces |
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a vehicle shown in the declarations for the policy must be the same |
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as the coverage for the vehicle being replaced. An insured must |
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notify the insurer of a replacement vehicle during the time |
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prescribed by Subsection (d) only if the insured wishes to: |
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(1) add coverage for damage to the vehicle; or |
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(2) continue existing coverage for damage to the |
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vehicle after the period prescribed by Subsection (d) expires. |
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(f) Coverage for a vehicle acquired in addition to the |
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vehicles shown in the declarations for the policy must be the |
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broadest coverage provided under the policy for any vehicle shown |
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in the declarations. |
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SECTION 3. The change in law made by this Act applies only |
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to an insurance policy delivered, issued for delivery, or renewed |
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on or after January 1, 2014. An insurance policy delivered, issued |
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for delivery, or renewed before January 1, 2014, is governed by the |
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law in effect immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2013. |