On December 28th, 2020, the Texas Department of Insurance issued a notice to remind automobile insurers of the new “class of driver” exclusion prohibition. Per Texas Insurance Code Section 1952.353, automobile insurers must not exclude any classes of driver in either their policy provisions or endorsements. An insurer may only exclude a driver if the excluded driver is specifically named and the named insured accepts the exclusion in writing. This prohibition applies to both personal and commercial automobile insurance policies.
For more information on this Notice, or any other regulatory compliance matter, please contact Westmont Associates, Inc.