H.B. No. 259

	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)  "Household" means a unit composed of individuals
	living together in the same dwelling, without regard to whether
	they are related to each other. The term includes a unit composed
	of individuals living together in:
	(A)  a home or mobile home;
	(B)  a duplex unit, apartment unit, or condominium
	unit; or
	(C)  any dwelling unit in a multiunit residential
	structure.
	(2)  "Named driver exclusion" means a provision or
	endorsement of an automobile insurance policy that excludes
	specified drivers from coverage under the policy.
	(3)  "Named driver policy" means an automobile
	insurance policy that provides any type of coverage for individuals
	named on the policy but that does not provide coverage for every
	individual who has permission to use a covered vehicle and who
	resides in a named insured's household.
	(4)  "Operator's policy" means an automobile insurance
	policy that, in accordance with Section 601.077, Transportation
	Code, provides coverage for the named insured when operating an
	automobile the insured does not own.
	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, Lloyd's plan, and any
	other insurer.
	Sec. 1952.353.  NAMED DRIVER POLICIES PROHIBITED; CERTAIN
	NAMED DRIVER EXCLUSIONS AUTHORIZED. (a) An insurer may not
	deliver, issue for delivery, or renew a named driver policy unless
	the named driver policy is an operator's policy.
	(b)  An insurer may use a named driver exclusion only if the
	exclusion specifically names each excluded driver and does not
	exclude a class of drivers and the named insured accepts the
	exclusion in writing.
	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 601.081(b), Transportation Code, is
	amended to read as follows:
	(b)  A standard proof of motor vehicle liability insurance
	form prescribed by the Texas Department of Insurance must include:
	(1)  the name of the insurer;
	(2)  the insurance policy number;
	(3)  the policy period;
	(4)  the name and address of each insured;
	(5)  the policy limits or a statement that the coverage
	of the policy complies with the minimum amounts of motor vehicle
	liability insurance required by this chapter; and
	(6)  the make and model of each covered vehicle[; and
	[(7)     for a named driver policy, the required
	disclosure under Section 1952.0545, Insurance Code].
	SECTION 4.  Section 1952.0545, Insurance Code, and Section
	601.081(a), Transportation Code, are repealed.
	SECTION 5.  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, 2020. A policy delivered, issued for
	delivery, or renewed before January 1, 2020, 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 6.  This Act takes effect September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 259 was passed by the House on April
	17, 2019, by the following vote:  Yeas 124, Nays 15, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 259 was passed by the Senate on May
	17, 2019, by the following vote:  Yeas 25, Nays 5, 1 present, not
	voting.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor