Legislative Blog
J.B. Williams, J.D.
Motor Vehicle Insurance 2021
A Blog about Motor Vehicle Insurance
A Bit of Background
The following backgrounds help summarize the author's views on both the general topic: Texas and more specifically Motor Vehicle Insurance as it relates to that topic.
Brief Summary of Texas
Texas is truly a Republic. There are a multitude of items that to modify the state constitution must be modified. So there are times when Constitutional amendments are on the voting ballots. While I sometimes abhor the wording, the concept that all of those legally able to vote in Texas must vote on the change is a good one. And bills in Texas are generally short, making it easier for everyone to understand.
Summary of Motor Vehicle Insurance
This bill makes some minor changes in the liability issues around motor vehicles. I believe it is in response to Uber and Lyft, since standard motor vehicle insurance coverage has probably move toward less liability for guests. My guess is that the entire insurance industry was figuring out how to balance coverage for a personal auto being used as a taxi service in terms of premiums versus cost to the insurer.
Blog Summary
It seems that this will limit liability to related guests in your vehicle. This makes sense since you are more likely to know those related to you, and therefore more likely to assist them in ways you may not to those not related to you. And if you are driving for Uber/Lyft you are not likely to know the individual and therefore should have more liability. This ties directly in with changes being made for commercial accidents and employer liability. Employers are liable for the actions of their employees/agents.
Motor Vehicle Insurance 2021
Published: 2021-09-08
Liability of Motor Vehicle Owner Guest
No limit on liability to a guest who is not within the second degree by consanguinity or affinity. I think this is meant to cover Uber and Lyft, and similar enttities that use independent drivers in their personal vehicles to transport others for a fare. If you are truly a guest then you are covered just like when you are in a vehicle with someone prior to this bill.
Actions regarding Commercial Motor Vehicles
It creates definitions for accidents involving commerical motor vehicles as well as defining motor vehicle and it's operation. An employee is as the term is used in state or federal law, as well as when an employer may be liable under respondeat superior. Meaning a party is responsible for the acts of their agent. An employer is liable for ordinary neglience of an employee if at the time of the accident the person was operating the vehicle was the defendant's employee and acting within the scope of the employment. If the employer is regulated by Motor Carrier Safety than information showing whether the empoloyee was licensed to drive; was disqualified from driving; was subject to out-of-service order; was driving in violation of a license restriction; had a certificate of driver's road test from employer; had been medically certified as physically qualified to operate the vehicle; was operating when prohibited from doing so; was texting or using a handheld mobile; refused to submit to a controlled substance test. Expert testimoney is not ncessary for admitting a photo or video of vehicle or object involved in accident.
There are a lot of items discussing bifurcated trial and all that goes along with the ability to bifurcate. This is merely a means of breaking things into smaller segments, where one portion makes some decisions before moving forward. Here the trier of fact (judge or jury) would determine liability for and the amount of compensatory damages. After that decision is made, the trier of fact determines the liability for and the amount of any exemplary damages. If the employee is found negligent in the first party, then the case would proceed to the second phase against the employer defendant for negligent entrustment. Allowing it to broken up can reduce the cost to an employer defendant depending on the outcome of the first phase of trial.
They are also requiring a study every 2 years regarding the premiums, deductibles, coverage and availability of commercial automobile insurance coverage. Unless this is extended it will only be conducted in 2022, 2024, and 2026.
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