Court Opinions

State Laws

US Code

US Constitution

Texas Insurance Code - Not Codified - Article 5.06-1. Uninsured Or Underinsured Motorist Coverage

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Article 5.06-1. Uninsured Or Underinsured Motorist Coverage

Art. 5.06-1. UNINSURED OR UNDERINSURED MOTORIST COVERAGE.                      

Article repealed effective April 1, 2007
	(1) No automobile liability insurance (including insurance 
issued pursuant to an Assigned Risk Plan established under 
authority of Section 35 of the Texas Motor Vehicle 
Safety-Responsibility Act), covering liability arising out of the 
ownership, maintenance, or use of any motor vehicle shall be 
delivered or issued for delivery in this state unless coverage is 
provided therein or supplemental thereto, in at least the limits 
described in the Texas Motor Vehicle Safety-Responsibility Act, 
under provisions prescribed by the Board, for the protection of 
persons insured thereunder who are legally entitled to recover 
damages from owners or operators of uninsured or underinsured motor 
vehicles because of bodily injury, sickness, or disease, including 
death, or property damage resulting therefrom.  The coverages 
required under this Article shall not be applicable where any 
insured named in the policy shall reject the coverage in writing;  
provided that unless the named insured thereafter requests such 
coverage in writing, such coverage need not be provided in or 
supplemental to a reinstated policy or renewal policy where the 
named insured has rejected the coverage in connection with that 
policy or a policy previously issued to him by the same insurer or 
by an affiliated insurer.
	(2)  For the purpose of these coverages:  (a) the term " 
uninsured motor vehicle" shall, subject to the terms and conditions 
of such coverage, be deemed to include an insured motor vehicle 
where the liability insurer thereof is unable to make payment with 
respect to the legal liability of its insured within the limits 
specified therein because of insolvency.
	(b)  The term "underinsured motor vehicle" means an insured 
motor vehicle on which there is valid and collectible liability 
insurance coverage with limits of liability for the owner or 
operator which were originally lower than, or have been reduced by 
payment of claims arising from the same accident to, an amount less 
than the limit of liability stated in the underinsured coverage of 
the insured's policy.
	(c)  The commissioner may, in the policy forms adopted under 
Article 5.06 of this code, define "uninsured motor vehicle" to 
exclude certain motor vehicles whose operators are in fact 
uninsured.  The commissioner may in the policy forms filed under 
Article 5.145 of this code allow the term "uninsured motor vehicle" 
to be defined to exclude certain motor vehicles whose operators are 
in fact uninsured.
	(d)  The portion of a policy form adopted under Article 5.06 
of this code or filed under Article 5.145 of this code to provide 
coverage under this article shall include provisions that, 
regardless of the number of persons insured, policies or bonds 
applicable, vehicles involved, or claims made, the total aggregate 
limit of liability to any one person who sustains bodily injury or 
property damage as the result of any one occurrence shall not exceed 
the limit of liability for these coverages as stated in the policy 
and the total aggregate limit of liability to all claimants, if more 
than one, shall not exceed the total limit of liability per 
occurrence as stated in the policy;  and shall provide for the 
exclusion of the recovery of damages for bodily injury or property 
damage or both resulting from the intentional acts of the insured.  
The portion of a policy form adopted under Article 5.06 of this code 
or filed under Article 5.145 of this code to provide coverage under 
this article shall require that in order for the insured to recover 
under the uninsured motorist coverages where the owner or operator 
of any motor vehicle which causes bodily injury or property damage 
to the insured is unknown, actual physical contact must have 
occurred between the motor vehicle owned or operated by such 
unknown person and the person or property of the insured.
	(3)  The limits of liability for bodily injury, sickness, or 
disease, including death, shall be offered to the insured in 
amounts not less than those prescribed in the Texas Motor Vehicle 
Safety-Responsibility Act and such higher available limits as may 
be desired by the insured, but not greater than the limits of 
liability specified in the bodily injury liability provisions of 
the insured's policy.
	(4)  (a) Coverage for property damage shall be offered to the 
insured in amounts not less than those prescribed in the Texas Motor 
Vehicle Safety-Responsibility Act and such higher available limits 
as may be desired by the insured, but not greater than limits of 
liability specified in the property damage liability provisions of 
the insured's policy, subject to a deductible amount of $250.
	(b)  If the insured has collision coverage and uninsured or 
underinsured property damage liability coverage, the insured may 
recover under the policy coverage chosen by the insured.  In the 
event neither coverage is sufficient alone to cover all damage 
resulting from a single occurrence, the insured may recover under 
both coverages.  When recovering under both coverages, the insured 
shall designate one coverage as the primary coverage and pay the 
deductible applicable to that coverage.  The primary coverage must 
be exhausted before any recovery is made under the secondary 
coverage.  If both coverages are utilized in the payment of damages 
from a single occurrence, the insured shall not be required to pay 
the deductible applicable to the secondary coverage when the amount 
of the deductible otherwise applicable to the secondary coverage is 
the same as or less than the amount of the deductible applicable to 
the primary coverage.  If both coverages are utilized in the payment 
of damages from a single occurrence and the amount of the deductible 
otherwise applicable to the secondary coverage is greater than the 
amount of the deductible applicable to the primary coverage, the 
insured shall be required to pay in respect of the secondary 
coverage only the difference between the amount of the two 
deductibles.  In no event shall the insured recover under both 
coverages more than the actual damages suffered.
	(5)  The underinsured motorist coverage shall provide for 
payment to the insured of all sums which he shall be legally 
entitled to recover as damages from owners or operators of 
underinsured motor vehicles because of bodily injury or property 
damage in an amount up to the limit specified in the policy, reduced 
by the amount recovered or recoverable from the insurer of the 
underinsured motor vehicle.
	(6)  In the event of payment to any person under any coverage 
required by this Section and subject to the terms and conditions of 
such coverage, the insurer making such payment shall, to the extent 
thereof, be entitled to the proceeds of any settlement or judgment 
resulting from the exercise of any rights of recovery of such person 
against any person or organization legally responsible for the 
bodily injury, sickness or disease, or death for which such payment 
is made, including the proceeds recoverable from the assets of the 
insolvent insurer;  provided, however, whenever an insurer shall 
make payment under a policy of insurance issued pursuant to this 
Act, which payment is occasioned by the insolvency of an insurer, 
the insured of said insolvent insurer shall be given credit in any 
judgment obtained against him, with respect to his legal liability 
for such damages, to the extent of such payment, but, subject to 
Section 12 of Article 21.28-C of this code, such paying insurer 
shall have the right to proceed directly against the insolvent 
insurer or its receiver, and in pursuance of such right such paying 
insurer shall possess any rights which the insured of the insolvent 
company might otherwise have had if the insured of the insolvent 
insurer had made the payment.
	(7)  If a dispute exists as to whether a motor vehicle is 
uninsured, the burden of proof as to that issue shall be upon the 
insurer.
	(8)  Notwithstanding Section 15.032, Civil Practice and 
Remedies Code, an action against an insurer in relation to the 
coverage provided under this article, including an action to 
enforce that coverage, may be brought only:
	(a)  in the county in which the policyholder or beneficiary 
instituting the suit resided at the time of the accident;  or
	(b)  in the county in which the accident involving the 
uninsured or underinsured motor vehicle occurred.

Added by Acts 1967, 60th Leg., p. 448, ch. 202, Sec. 1, eff. Oct. 1, 
1967.  Amended by Acts 1977, 65th Leg., p. 370, ch. 182, Sec. 1, eff. 
Aug. 29, 1977;  Acts 1979, 66th Leg., p. 1418, ch. 626, Sec. 1, eff. 
Jan. 1, 1980;  Acts 1981, 67th Leg., p. 1002, ch. 380, Sec. 1, eff. 
Aug. 31, 1981.

Sec. (6) amended by Acts 1989, 71st Leg., ch. 1082, Sec. 6.01, eff. 
Sept. 1, 1989;  Sec. (2) amended by Acts 1991, 72nd Leg., ch. 242, 
Sec. 2.08, eff. Sept. 1, 1991;  Sec. (8) added by Acts 1995, 74th 
Leg., ch. 138, Sec. 8, eff. Aug. 28, 1995;  Sec. (2) amended by Acts 
2003, 78th Leg., ch. 206, Sec. 21.08, eff. June 11, 2003;  Sec. (1) 
amended by Acts 2005, 79th Leg., ch. 1159, Sec. 3, eff. June 18, 
2005.

Last modified: August 11, 2007