Texas Department of Insurance
Proposed Action
The Commissioner of Insurance, at a public hearing under Docket No. 2450
scheduled for August 16, 2000 at 10:00 a.m., in Room 100 of the William P.
Hobby Jr. State Office Building, 333 Guadalupe Street in Austin, Texas, will
consider a proposal made in a staff petition. Staff's petition seeks amendment
of the Texas Standard Provisions for Automobile Insurance Policies (the Standard
Provisions) to eliminate countersignature requirements from all such policies.
Staff's petition (Ref. No. A-0700-16-I), was filed on July 3, 2000.
Staff proposes to eliminate the requirements for countersignatures from
all policies and instructions in the Standard Provisions. Exhibits attached
to the petition show how this proposal may be implemented. The exhibits are
arranged in the order in which the policy forms and instructions appear in
the Standard Provisions as follows: Personal Auto Policy (page 15, and its
Declarations - page 16); Reference notes for commercial policies (page 62);
Business Auto Declarations (page 64); Garage Declarations (page 68); Truckers
Declarations (page 80); Non-Resident Texas Auto Policy (Reference Notes -
page 89); Mechanical Breakdown Policy (Reference Notes - page 101, Declarations
- page 102, New Vehicle/Select Component pages 103 and 108, New Vehicle -
pages 109 and 114, Used Vehicle - pages 115 and 120); Single Interest Automobile
Physical Damage Insurance Policy (Reference Notes - page 125, Master Policy
Declarations - page 126, Master Policy - page 131, Individual Policy Declaration
- page 132, Individual Policy - page 136, Master Policy Certificate - page
137); Excess Liability Policy (Reference Notes - page 143, Declarations -
page 144, policy form - page 145); and Mobilowners Policy (Declarations -
page 149, policy form - page 158).
Current automobile policy forms and their instructions, promulgated under
the Insurance Code, Article 5.06, require countersignatures on all such policies.
Former Insurance Code, Article 21.09 prohibited insurers from allowing any
nonresident to countersign such a policy, and it provided that countersigning
could not be done "except through regularly licensed local recording agents
of such companies in Texas."
Staff has been informed by insurers that requirements for countersignatures
place a hardship on some insurers, most notably those that market their policies
directly, rather than through agents. Some insurers apparently need to have
licensed agents only because of countersignature requirements.
Through House Bill 3391, the 75th Texas Legislature repealed Insurance
Code, Article 21.09, and amended Article 21.11 to delete the reference to
countersigning. Since a countersignature is no longer required by statute,
Staff believes that it should no longer be required for any policy contained
in the Standard Provisions.
A copy of the petition, including an exhibit with 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 (Ref. No. A-0700-16-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 Marilyn Hamilton, Deputy Commissioner, Personal
and Commercial Lines Division, Texas Department of Insurance, P. O. Box 149104,
MC 104-PC, 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.
TRD-200004656
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: July 5, 2000
The Commissioner of Insurance at a public hearing held June 28, 2000, at
10:00 a.m. under Docket No. 2448 in Room 100 of the William P. Hobby Jr. State
Office Building, 333 Guadalupe Street, Austin, Texas adopted amendments proposed
by Staff to amend the Texas Personal Lines Manual (Manual) rules which will
provide a second category for an optional credit on Homeowners and Dwelling
policies for stovetop fire suppression devices. Staff's petition was filed
on May 17, 2000; notice of this petition (Reference No. P-0500-12-I) was published
in the May 26, 2000, issue of the
Texas Register
(25 TexReg 4930).
The Commissioner adopted the proposal as noticed in the May 26, 2000, issue
of the
Texas Register
. The adopted rules:
(1) provide for a Category 1 listing for the current stovetop fire suppression
credits; (2) provide a second category for the amount of credits for stovetop
fire suppression devices; and (3) require the suppression device or devices
to have been approved by the State Fire Marshal in accordance with 28 TAC §§34.1001
- 34.1004.
The adoption amends two (2) Manual rules:
(1) In the Homeowners Section, Manual Rule VI-C, Optional Homeowners Credits,
(8) Stovetop Fire Suppression Devices, is amended to provide that the existing
credits are applicable as Category 1 and to establish a second category of
optional credit for stovetop fire suppression devices. The amount of credit
applicable as Category 2 credits for policies HO-A, HO-B, and HO-C is 1.5
percent. The amount of credit applicable as Category 2 credits for policies
HO-BT, HO-CT, HO-CON-B, and HO-CON-C is 5 percent.
(2)In the Dwelling Section, Manual Rule VI-C, 6. Optional Dwelling Credits,
b. Stovetop Fire Suppression Devices, is amended to provide that the existing
credits are applicable as Category 1 and to establish a second category of
optional credit for stovetop fire suppression devices. The amount of credit
applicable as Category 2 credits for Texas Dwelling Policies is 7 percent.
The amendments to both the Homeowners and Dwelling Section rules further
provide that the credits are only applicable to devices in use on or after
January 1, 2000, and that the devices must be approved by the State Fire Marshal
in accordance with 28 TAC §§34.1001 - 34.1004. There are also some
minor editorial amendments.
The Commissioner of Insurance has jurisdiction over this matter pursuant
to the Insurance Code, Articles 5.33C, 5.96, 5.98, and 5.101.
The Manual rules as adopted by the Commissioner of Insurance are on file
in the Chief Clerk's Office of the Texas Department of Insurance under Reference
No. P-0500-12-I and are incorporated by reference in the Manual by Commissioner's
Order No. 00-0777.
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).
Consistent with the Insurance Code, Article 5.96(h), the Department will
notify all insurers writing residential property insurance of this adoption
by letter summarizing the Commissioner's action.
IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the second
category of optional credits for stovetop fire suppression devices for Homeowners
and Dwelling policies as described herein and which are attached to this Order
and incorporated into this Order by reference, are adopted to be effective
on and after August 1, 2000, and that the existing credits applicable as Category
1 credits for stovetop fire suppression devices remain in full force and effect.
TRD-200004545
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: June 30, 2000
Final Action