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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 defining a covered vehicle in accordance with this |
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section for a motor vehicle acquired by the insured during the |
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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, utility vehicle, or van with a gross |
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vehicle weight of 30,000 pounds or less that is not used for the |
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delivery or transportation of goods, materials, or supplies, other |
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than 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) Coverage under this section is required only for a |
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vehicle that is acquired during the policy term and of which the |
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insurer is notified on or before: |
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(1) the 20th day after the date on which the insured |
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becomes the owner of the vehicle; or |
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(2) a later date specified by the policy. |
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(e) Coverage under this section for a vehicle that replaces |
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a covered vehicle shown in the declarations for the policy must be |
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the same as the coverage for the vehicle being replaced. An insured |
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must 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 under this section for a vehicle that is |
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acquired during the policy term in addition to the covered vehicles |
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shown in the declarations for the policy and of which the insurer is |
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notified as prescribed by Subsection (d) must be the broadest |
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coverage provided under the policy for any covered vehicle shown in |
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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. |
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* * * * * |