NEW Texas Insurance ruling: NAMED DRIVER POLICIES ARE DEAD.
Important information regarding Named Driver Policies in Texas
Flower Mound, TX – June 6, 2019 - An important event occurred in the 86th Legislative Session regarding Named Driver policies. H.B. 259 was passed and signed into law on June 5th and eliminates Named Driver policies. The law is effective September 1st, 2019 and lists January 1, 2020 as the final effective date for new and renewal policies to be compliant. Aspen MGA awaits the TDI’s interpretation of this law as their ruling will ultimately guide how fast Named Driver policies will become illegal. Knowing the TDI’s disdain for Named Driver policies, it will not be shocking to see the TDI take a very tough position against the remaining Named Driver Policies.
There is good news regarding Named Driver! ALL Aspen MGA policies are compliant as we have never written Named Driver policies. We continue to be here for you and the people of Texas with legal and real insurance policies.
There were a few other bills from this session that you might find interesting:
- HB 2048 increased the ABTPA Fee (Automobile Burglary and Theft Prevention Fee) from $2 per insured vehicle to $4 per insured vehicle. This fee is charged to the insurance company and typically passed through to the consumer. I expect you will begin to see this fee start to increase on most of your policies beginning in July but will vary as each company decides on when they will address this change. At the time of this release the governor has not signed the bill but this is expected to become law within the month.
- HB 1554 and 1555 introduced language that will allow residential and auto policies in language other than English and supports additional explanatory documents. Noting in both cases, the English version of the policy will remain the official terms of the contract.
- HB 1631 prohibits the use of Red-light cameras. This will be interesting to see if this causes an increase in traffic light accidents.
- On a lighter note, HB 234 legalized Lemonade Stands in Texas. Hopefully this will encourage and develop young entrepreneurs. Stop by your local lemonade stand and support the future leaders of the State of Texas!
TCB! (Taking Care of Business)
Paul B. Harrison, CPCU
Aspen MGA Founder and President