28 TAC §34.1004
The Texas Department of Insurance proposes an amendment to §34.1004
concerning residential stovetop fire suppression device approval. This amendment
is necessary to set forth the criteria which will allow insurers to offer
a second category of insurance premium discount for a correctly installed
residential stovetop fire suppression device, as defined by statute, that
has been approved by the state fire marshal through the commissioner and also
adds requirements for all categories of devices. Amendments to the Texas Personal
Lines Manual are also being proposed regarding provisions for optional credits
for Homeowners and Dwelling policies for stovetop fire suppression devices.
The proposed amendment applies only to residential stovetop fire suppression
devices in use on or after January 1, 2000. The 76th Legislature enacted Senate
Bill 139, which amended Subchapter C, Chapter 5, by adding Article 5.33C to
the Insurance Code. Article 5.33C provides that a policyholder of a single-family
or multifamily dwelling, apartment owner, or condominium owner is eligible
for a premium reduction for homeowner's insurance coverage or fire or commercial
fire insurance coverage if the policyholder has correctly installed on the
covered property a stovetop fire suppression device that has been approved
by the state fire marshal through the commissioner. Because the legislation
contemplated that it is the policyholder who installs the device and that
the discount is granted for "a correctly installed and functioning stovetop
fire suppression device," the authority of the state fire marshal is limited
solely to approval of the device to qualify for an optional premium discount
on certain homeowner's, fire, and commercial fire insurance premiums. The
current statute and rules relating to fire extinguishers (Insurance Code Article
5.43-1; 28 TAC Chapter 34, Subchapters D and E) regulate, among other things,
the leasing, selling, installing, and servicing of fire extinguishers, and
prohibit the sale or use of all fire extinguishers, equipment, and systems
that are not labeled or listed by an approved testing laboratory pursuant
to nationally recognized or laboratory developed standards. As with that statute
and rules, the state fire marshal has developed criteria for approving stovetop
fire suppression devices, for purposes of the premium discount, with reference
to product certification by nationally recognized testing facilities and methods.
Currently, there is no single recognized national standard for residential
stovetop fire suppression devices. The state fire marshal has utilized a combination
of standards and test criteria developed by recognized product performance
standards organizations that the state fire marshal believes would best demonstrate
the integrity of the product, provide a minimum performance capability, and
afford the user a minimum level of safety in safeguarding lives and property.
The amendment to §34.1004 covers a category of device that is not intended
to extinguish deep fat fires; accordingly, the proposed approval criteria
utilize applicable standards from the referenced publications from Underwriters
Laboratories that would apply to this type of device. Concomitantly, the proposal
requires labeling of the limitations of the device to be printed prominently
on the device itself, in the installation manual, and conveyed in any sales
literature or presentations. The amendment further provides that the manufacturer
of any stovetop fire suppression device will require the approved testing
laboratory to send to the state fire marshal's office a certificate of compliance
signed by a registered engineer and that record copies of the test results
will be maintained and provided to the state fire marshal's office upon written
request. The other requirements of the rule concerning a certification mark
and instruction manual also apply to all stovetop fire suppression devices.
G. Mike Davis, state fire marshal, has determined that for each year of
the first five years the proposed section is in effect, there will be no fiscal
impact to state government. There will be no fiscal implications for local
government as a result of enforcing or administering the section, and no effect
on the local economy or local employment.
Mr. Davis also has determined that for each year of the first five years
that the proposed amendment is in effect, the anticipated public benefit from
enforcing and administering this section is an efficient and consistent approval
process for the regulation of residential stovetop fire suppression devices
for purposes of the category of premium discount allowed under Insurance Code
Article 5.33C. Additionally, the public will benefit from the adoption and
enforcement of minimum product performance and testing standards. The effect
of the proposed amendment on large, small, and micro-businesses results mostly,
if not entirely, from the legislative enactment of Senate Bill 139, 76th Legislature,
which permits a reduction in premium for homeowner's insurance coverage or
fire or commercial fire insurance coverage to policyholders who correctly
install, on the covered property, functioning residential stovetop fire suppression
devices that have been approved by the state fire marshal. The cost of compliance
with this proposed amendment is the cost to manufacturers to have their product
tested by an approved testing laboratory to the specified performance standards.
The total estimated cost for this testing is dependent on the complexity of
a specific suppression device and will be an equivalent cost, depending on
the equivalency of the devices, for all persons and companies, including large,
small, and micro-businesses, who engage in the business of manufacturing residential
stovetop fire suppression devices. Based on the state fire marshal's experience
with testing laboratories, it is difficult to estimate with any specificity
the cost involved because of the complex differences with types of systems,
but it is estimated that a manufacturer developing this product may expend
a minimum of $100,000 to meet the performance standards. However, any manufacturer
who has already complied with these standards will have no measurable additional
costs. Regarding the category of device that is not intended to extinguish
deep fat fires, the proposal requires labeling of the limitations of the device
to be printed prominently on the device itself, in the installation manual,
and conveyed in any sales literature or presentations. After consultation
and inquiry regarding the cost of such labeling, it is estimated that a manufacturer
may expend approximately $173 per thousand units in order to meet this requirement.
It is also anticipated that any increase in costs as a result of the proposal
will be passed on to consumers and will ultimately be recouped by the manufacturer.
The proposed amended section may not be waived for manufacturers of residential
stovetop fire suppression devices who qualify as a small or micro-business
because the statute mandates approval of these devices in order for them to
be eligible for the premium discount. In addition, lesser standards would
neither be legal nor feasible as the statute contemplates that the devices
be adequate to protect against hazards.
To be considered, all comments on the proposal must be submitted in writing
no later than 5 p.m. on June 26, 2000, to Lynda H. Nesenholtz, General Counsel
and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box
149104, Austin, Texas 78714-9104. An additional copy of the comments must
be submitted simultaneously to G. Mike Davis, State Fire Marshal, Mail Code
108-FM, Texas Department of Insurance, P.O. Box 149221, Austin, Texas 78714-9221.
A request for a public hearing should be submitted separately to the Office
of the Chief Clerk.
The amended section is proposed pursuant to the Insurance Code
Article 5.33C and §36.001. Article 5.33C provides that a policyholder
of a single-family or multifamily dwelling, apartment owner, or condominium
owner is eligible for a premium reduction for homeowner's insurance coverage
or fire or commercial fire insurance coverage if the policyholder has correctly
installed on the covered property a stovetop fire suppression device that
has been approved by the state fire marshal through the commissioner and permits
the commissioner to adopt rules necessary for the implementation of the article.
Insurance Code §36.001 authorizes the Commissioner of Insurance to adopt
rules for the conduct and execution of the duties and functions of the Texas
Department of Insurance only as authorized by statute.
The following statute is affected by the proposed section: Insurance Code
Article 5.33C
§34.1004.Approval.
A stovetop fire suppression device will be considered approved by the
State Fire Marshal, for the purpose of this subchapter,
upon the occurrence
of the following
[
if
]:
(1)
It has been tested by an approved testing laboratory and,
at the time it was tested, meets the applicable approval criteria of the most
recent edition of the
product performance standards listed in the
following
subparagraphs
:
(A)
For a Category 1 optional premium discount:
(i)
(A)
UL 1254 "Standard for Pre-engineered
Dry Chemical Extinguishing System Units" or UL 299 "Dry Chemical Fire Extinguishers",
and
(ii)
[
(B)
] UL Subject 300A "Outline
of Investigation for Extinguishing System Units for Residential Range Top
Cooking Surfaces."
(B)
For a Category 2 optional premium discount:
(i)
UL 1254 "Standard for Pre-engineered Dry
Chemical Extinguishing System Units" or UL 299 "Dry Chemical Fire Extinguishers",
and
(ii)
UL Subject 300A "Outline of Investigation
for Extinguishing System Units for Residential Range Top Cooking Surfaces",
with the following deviations:
(I)
The type and amount of oil in test numbers
1, 5, & 7 of Table 4.1 of UL Subject 300A shall be one-quarter inch of
peanut oil in lieu of 1 inch;
(II)
The type and amount of oil in test numbers
2, 8, 11 & 13 of Table 4.1 of UL Subject 300A shall be one-half inch of
vegetable oil in lieu of 1 inch;
(III)
Test numbers 3, 4, 9, 10, & 12 of
Table 4.1 of UL Subject 300A, shall not be required.
(2)
For those devices qualifying
for the Category 2 optional premium discount, the following phrases shall
be printed prominently on the exterior of the agent container, in the installation
manual and conveyed in any sales literature or presentations:
(A)
This device is not intended to extinguish
deep fat fires;
(B)
When activated, this device may cause grease
fires to splash; and
(C)
If the heat source of an appliance containing
a fire is not immediately shut off after discharge of this device, the fire
may reignite.
(3)
The manufacturer of the device
requires the approved testing laboratory to send to the State Fire Marshal's
Office, a Certificate of Compliance, signed by a registered engineer, that
certifies the tested device meets the applicable approval criteria of this
section and that record copies of the test results will be kept on file and
provided to the State Fire Marshal's Office upon written request.
(4)
[
(2)
] It carries the certification
mark of the approved testing laboratory; and
(5)
[
(3)
] Installation, operation,
recharge, inspection, and maintenance instruction manual(s), as submitted
to the approved testing laboratory, are provided with each device sold.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on May 15, 2000.
TRD-200003364
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: June 25, 2000
For further information, please call: (512) 463-6327