Named Driver Exclusion in Texas Auto Insurance
A named driver exclusion is an automobile policy provision or endorsement excluding specified drivers from coverage under that policy.
Definition
Texas Insurance Code section 1952.351 defines a named driver exclusion as an automobile insurance policy provision or endorsement that excludes specified drivers from coverage under the policy. The exclusion is distinct from the statutory definition of a named driver policy. Its operation depends on its wording and applicable law.
Structural Components
- The exclusion identifies each person to whom it applies.
- It forms part of the policy through a provision or endorsement.
- The named insured’s written acceptance is a statutory condition for use of such an exclusion.
Parameters and Conditions
- Texas Insurance Code section 1952.353 requires each excluded driver to be specifically named and does not permit the exclusion of a class of drivers.
- The same section requires the named insured to accept the exclusion in writing.
- The treatment of particular coverages must be evaluated under the endorsement, policy and applicable law.
Topic Relationships
Exceptions, Limitations, and Boundaries
A named driver exclusion is not synonymous with a named driver policy. Its existence does not by itself establish the effect of every other policy or every coverage part. Texas Department of Insurance form-review guidance addresses additional rejection language when an insurer intends the exclusion to apply to PIP and UM/UIM.