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Texas Insurance Code - Not Codified - Article 5.06-2. Garage Insurance

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Art. 5.06-2. GARAGE INSURANCE. Article repealed effective April 1, 2007 (1) Definitions. As used in this Act: (a) "Garage Insurance" means motor vehicle or automobile insurance as defined in Article 5.01 hereof issued to a named insured engaged in the business of selling, servicing or repairing motor vehicles as now or hereafter defined by rules, regulations or orders of the State Board of Insurance; (b) "Garage Customer" means any person or organization other than the named insured, or an employee, director, officer, stockholder, partner, or agent of the named insured; or a resident of the same household as the named insured, such employee, director, officer, stockholder, partner, or agent; (c) "Financial Responsibility Limits" means the minimum limits specified by the Texas Motor Vehicle Safety-Responsibility Act. (2) A policy of garage insurance may contain a provision to the effect that garage customers are not insureds under the garage insurance policy and that the garage insurance shall not apply to garage customers, except to the extent that other valid and collectible insurance, if any, available to the garage customer is not equal to the financial responsibility limits. Notwithstanding any provision to the contrary in such other policy or policies of insurance as to whether such insurance is primary, excess, or contingent insurance, or otherwise, such other valid and collectible insurance shall be primary insurance as to the garage customer. Any garage insurance policy containing such a provision shall not cover garage customers except to such extent, notwithstanding the terms and provisions of such other policy or policies of insurance. (3) This Act shall apply only to insurance policies issued or renewed or made subject to this Act by endorsement after the effective date hereof. Added by Acts 1969, 61st Leg., 2nd C.S., p. 193, ch. 35, Sec. 1, eff. Sept. 19, 1969.

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Last modified: August 11, 2007