Proposed
The Commissioner of Insurance will hold a public hearing under Docket Number
2281 on March 5, 1997, at 10:00 a. m. in Room 100 of the Texas Department
of Insurance Building, 333 Guadalupe Street in Austin, Texas, to consider
a petition by the staff of the Texas Department of Insurance proposing the
adoption of amendments to the Homeowners and the Farm and Ranch Owners sections
of the Texas Personal Lines Manual to establish an optional premium credit
for homeowners and for farm and ranch owners policies for the permanent identification
of personal property as a protective measure against residential burglary
and the adoption of the "Inspector's Report For Compliance With The Property
Identification Theft Reduction Program" form to be used to demonstrate that
the policyholder qualifies for the reduction in premiums. The rules and form
proposed for adoption in the staff petition are necessary to implement the
recommendations of the Residential Property Insurance Loss Mitigation Advisory
Committee.
The petition requests consideration of the adoption of amendments to two
rules in the Texas Personal Lines Manual.
1) In the Homeowners Section, Manual Rule VI-C is amended to add new item
6 "Personal Property Identification".
2) In the Farm and Ranch Owners Section, Manual Rule VI-C is amended to
add new item 6 "Personal Property Identification".
These rules specify the standards that policyholders must meet to qualify
for the credit and provide an optional credit of up to 5% for homeowners
and farm and ranch owners policies for those policyholders who comply with
the property identification program.
Staff proposes the adoption of an "Inspector's Report for Compliance with
the Property Identification Theft Reduction Program" form to be used by inspectors
certified by the Texas Commission on Law Enforcement Officer Standards and
Education. The form will be used to certify that the personal property at
the residence has been permanently marked or photographed in accordance with
the criteria specified in the rule and that there are signs or stickers visible
from the outside of the residence that indicate the personal property contained
inside the residence has been permanently marked.
Commissioner's Order Number 94-1029 created the Residential Property Insurance
Loss Mitigation Advisory Committee (Advisory Committee). The purpose of the
Advisory Committee is to advise and make recommendations to the Commissioner
of Insurance for reducing residential property insurance losses. The amount
of losses paid are a vital factor in determining insurance rates. A significant
reduction in the amount of losses paid will ultimately reduce residential
property insurance rates in Texas. In many instances, some of the losses
that occur could be prevented through efforts to improve factors that have
a direct bearing on losses.
Prior to the establishment of the Advisory Committee, public hearings were
held regarding the increasing losses from wind and hail, crime and freezing
pipes. The purpose of the hearings was to allow public testimony concerning
methods that could be used to help reduce the increasing losses in these
areas. As a follow-up to the public hearings, the Advisory Committee was
appointed to review the various methods suggested for reducing losses, as
well as any other methods, and to make appropriate recommendations to the
Commissioner for the implementation of such recommendations.
One of the Advisory Committee's recommendations for reducing residential
burglaries is the Property Identification Theft Reduction Program which involves
permanently marking commonly stolen personal property in residences and posting
signs or stickers that are visible from the outside of the residence that
indicate the personal property contained in the residence has been permanently
marked. A majority of the most commonly stolen property in residences has
no identifiable markings that can be used in a recovery process. Property
that is unmarked makes the residence a prime target for burglary. Unmarked
property recovered by law enforcement officers cannot be traced or returned
to the owner and it cannot be used in court as evidence to prosecute the
burglar. Without identifiable markings, stolen property can be disposed of
by criminals who profit from the crime with virtually no risk of apprehension.
Permanently marked personal property is a simple and cost effective method
of reducing burglary and theft losses. A residence displaying stickers or
signs indicating the personal property contained in the residence has been
permanently marked is a deterrent to a burglar or thief. Permanently marked
property is difficult for a burglar or thief to dispose of and it is acceptable
evidence to the courts for conviction of criminals. Permanently marking personal
property gives law enforcement officials the opportunity to identify property
quickly and return it to its rightful owner, thus reducing the loss to insurance
companies. The cost to individuals who choose to identify their property
can be less than $10.00. In communities where this type of program has been
implemented, a decrease in burglaries and thefts has occurred.
The Advisory Committee recommended that the optional credits contained
in the Homeowners section and the Farm and Ranch Owners section of the Texas
Personal Lines Manual be amended to include the identification of personal
property as a protective measure that is eligible for an optional credit
of up to five percent when such identification of personal property is in
compliance with specific criteria.
The Commissioner has jurisdiction of this matter pursuant to the Insurance
Code, Articles 5.101, 5.96, and 5.98.
Copies of the full text of the staff petition and the proposed Manual rules
and form are available for review in the Office of the Chief Clerk of the
Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas, 78701.
For further information or to request copies of the petition and proposed
amendments, please contact Angie Arizpe at (512) 322-4147 (refer to reference
Number P-0197-03-I).
Comments on the proposed changes must be submitted in writing within 30
days after publication of the proposal in the Texas Register to the Office
of the Chief Clerk, P.O. Box 149104, MC 113-2A, Austin, Texas 78714-9104.
An additional copy of the comment should be submitted to David Durden, Deputy
Commissioner for Property and Casualty Lines, P.O. Box 149104, MC 104-5A,
Austin, Texas 78714-9104.
This notification is made pursuant to the Insurance Code, Article 5.96,
which exempts action taken under this article from the requirements of the
Administrative Procedure Act (Government Code, Title 10, chapter 2001).
Issued in Austin, Texas, on January 27, 1997.
TRD-9701226
Caroline Scott
Assistant General Counsel
Texas Department of Insurance
Filed: January 27, 1997
The Commissioner of Insurance, at a public hearing under Docket Number
2280 scheduled for March 5, 1997 at 10:00 a.m. in Room 100 of the Texas Department
of Insurance Building, 333 Guadalupe Street in Austin, Texas, will consider
a proposal made in a staff petition. Staff's petition seeks amendment of
the Texas Automobile Rules and Rating Manual (the Manual), to adopt new and/or
adjusted 1997 model Private Passenger Automobile Physical Damage Rating Symbols
and revised identification information. Staff's petition (Reference Number
A-0197-01-I) was filed on January 6, 1997.
The new and/or adjusted symbols for the Manual's Symbols and Identification
Section reflect data compiled on damageability, repairability, and other
relevant loss factors for the listed 1997 model vehicles.
A copy of the petition containing the full text of the proposed amendments
to the Manual is available for review in the office of the Chief Clerk of
the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas. For
further information or to request copies of the petition, please contact
Angie Arizpe at (512) 463-6326; refer to (Reference Number A-0197-01-I).
Comments on the proposed changes must be submitted in writing within 30
days after publication of the proposal in the Texas Register, to the Office
of the Chief Clerk, Texas Department of Insurance, P. O. Box 149104, MC 113-2A,
Austin, Texas 78714-9104. An additional copy of comments is to be submitted
to David Durden, Deputy Commissioner, Property and Casualty Insurance Lines,
Texas Department of Insurance, P. O. Box 149104, MC 104-5A, Austin, Texas
78714-9104.
This notification is made pursuant to the Insurance Code, Article 5.96,
which exempts it from the requirements of the Government Code, Chapter 2001
(Administrative Procedure Act).
This agency hereby certifies that the proposal has been reviewed by legal
counsel and found to be a valid exercise of the agency's authority.
Issued in Austin, Texas, on January 17, 1997.
TRD-9700844
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: January 17, 1997
PROPOSED