Texas Register
(26 TexReg 1753). The Consumer Bills
of Rights set forth a summation of consumers' most important rights with regard
to each line of insurance, including consumers' rights to receive information
from the Department of Insurance and their insurers, rights relating to buying
insurance, rights regarding cancellation and refusal to renew policies, rights
regarding claims made under policies, rights regarding non-discrimination,
and enforcement rights. Since the original publication of the Consumer Bills
of Rights in 1993, legislative acts and departmental actions have resulted
in changes affecting both policyholders and insurers. It is necessary to incorporate
these changes so that insurers will be distributing to current and future
policyholders updated information informing them of their rights.
The Commissioner adopted the proposal as noticed in the February 23, 2001,
issue of the Texas Register, with grammatical and typographical corrections,
as well as other changes to the revised Consumer Bills of Rights as follows:
The language referring to unfair discrimination between individuals of the
same class and of essentially the same hazard has been deleted from each of
the Consumer Bills of Rights since the interpretation of the statute which
is the subject of this language is currently in litigation. The words "or
access to less expensive coverage offered by other insurance companies represented
by your agent or insurance company representative" have been deleted from
item 4 in each Consumer Bill of Rights so as to track more specifically the
statute that is the subject of that right relating to "Buying Insurance."
An additional note has been added to item 4 in each Consumer Bill of Rights
to clarify the duties regarding this right as applied to insurance companies
and independent agents. The word "statistically" has been deleted from item
number 28 in the Consumer Bill of Rights for Personal Automobile Insurance
and from item number 24 in the Consumer Bill of Rights for Homeowners, Dwelling
and Renters Insurance so as to track more specifically the statute that is
the subject of that right relating to "Discrimination." At the end of the
"Discount" section of the Consumer Bill of Rights for Personal Automobile
Insurance, the language regarding county mutuals has been clarified to note
that the amount of a discount, if offered, is determined by the county mutual
and may be different from those percentages listed in the bill of rights.
In the "Enforcing Your Rights" section of the Consumer Bill of Rights for
Personal Automobile Insurance, item number 32 begins with the newly added
phrase, "If you file a claim under your comprehensive or collision coverage,"
which more accurately reflects the right to demand appraisal, and for clarity,
the references to "the" insurance company have been changed to "your" insurance
company. The Spanish language translations have also been revised in accord
with the changes noted herein in addition to grammatical and typographical
corrections. The adopted rules: (1) implement Insurance Code Article 1.35A,
Sec. 5(b)(8), which provides that the Public Counsel for OPIC "shall submit
to the department for adoption a consumer bill of rights appropriate to each
personal line of insurance regulated by the department to be distributed upon
the issuance of a policy by insurers to each policyholder under rules adopted
by the department;" (2) update the current bills of rights to reflect the
changes brought about by legislative acts and departmental actions that affect
both policyholders and insurers; (3) incorporate these changes so that insurers
will be distributing to current and future policyholders updated information
informing them of their rights; and (4) update the bills of rights in general
to provide simplified language and to clarify various provisions.
The adoption revises the "Consumer Bill of Rights for Personal Automobile
Insurance" which revised version is required to be distributed with each new
policy and with the next renewal notice to the current policyholder pursuant
to the Texas Automobile Rules and Rating Manual, Section I, General Rules,
16. The adoption also makes editorial revisions to rule 16 and further revises
the Texas Standard Provisions for Automobile Policies, Special Instructions
for the Texas Personal Auto Policy, by adding new number 12, to reflect the
requirement of providing a "Consumer Bill of Rights for Personal Automobile
Insurance" in accord with rule 16 of the Texas Automobile Rules and Rating
Manual.
Additionally, the adoption reflects the following:
(1) The document has been updated to reflect legislative acts and departmental
actions.
(2) The document has been updated in general to provide simplified language
and to clarify various provisions.
(3) The reference to required discounts has been revised.
(4) The references to insureds' rights under the Texas Automobile Insurance
Plan Association (TAIPA) have been updated.
(5) The "Claims" provisions have been revised.
(6) The addresses of the department and OPIC have been updated and expanded
to include electronic addresses.
The adoption revises the "Consumer Bill of Rights for Homeowners, Dwelling
and Renters Insurance" which revised version is required to be distributed
with each new policy and with the next renewal notice to the current policyholder
pursuant to the Texas Personal Lines Manual, Homeowners Section V. General
Requirements, F. There are also adopted updated and editorial revisions to
item F and further revisions to the Texas Personal Lines Manual, Dwelling
Section V. General Requirements, by adding new item I, to require insurers
writing dwelling policies to distribute the revised "Consumer Bill of Rights
for Homeowners, Dwelling and Renters Insurance" with each new policy and with
the next renewal notice to the current policyholder pursuant to this new provision
in the Dwelling Section.
Additionally, the adoption reflects the following:
(1) The document has been updated to reflect legislative acts and departmental
actions.
(2) The document has been updated in general to provide simplified language,
to clarify various provisions, and to reflect the application to dwelling
policies thus creating a change in the title of the Bill of Rights.
(3) The reference to required discounts has been added.
(4) The reference in the Information section about the Market Assistance
Program (MAP) has been included.
(5) The "Claims" provisions have been revised.
(6) The addresses of the department and OPIC have been updated and expanded
to include electronic addresses.
The adopted revisions are more particularly set forth in the "Consumer
Bill of Rights for Personal Automobile Insurance" that is attached hereto
as Exhibit A and made a part hereof for all purposes, and in the "Consumer
Bill of Rights for Homeowners, Dwelling and Renters Insurance" that is attached
hereto as Exhibit B and made a part hereof for all purposes. Also attached
hereto and made a part hereof for all purposes are Exhibit C which sets forth
revisions to the Texas Automobile Rules and Rating Manual, Section I, General
Rules, 16; Exhibit D which sets forth revisions to the Texas Standard Provisions
for Automobile Policies, Special Instructions for the Texas Personal Auto
Policy by adding new number 12 and re-numbering the former number 12; and
Exhibit E which sets forth revisions to the Texas Personal Lines Manual, Homeowners
Section V. General Requirements, F, and which adds a new item I to the Dwelling
Section V. General Requirements, and re-letters the former items I and J.
In accord with the requirements of the manual rules, the department has also
developed Spanish translations of the revised Bills of Rights; thus, attached
hereto as Exhibit F and made a part hereof for all purposes is the Spanish
translation of the revised "Consumer Bill of Rights for Personal Automobile
Insurance," and attached hereto as Exhibit G and made a part hereof for all
purposes is the Spanish translation of the revised "Consumer Bill of Rights
for Homeowners, Dwelling and Renters Insurance."
The Commissioner of Insurance has jurisdiction over this matter pursuant
to the Insurance Code, Articles 1.35A, 5.06, 5.10, 5.35, 5.96, 5.98, 5.101,
and §31.002.
The items referenced herein which are adopted by the Commissioner of Insurance
are on file in the Chief Clerk's Office of the Texas Department of Insurance
under Reference No. AP-0201-02-I and are incorporated by reference into Commissioner's
Order No. 02-0507.
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 affected by this action of this adoption by letter summarizing
the Commissioner's action.
IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the revisions
to the "Consumer Bill of Rights for Personal Automobile Insurance" and "Consumer
Bill of Rights for Homeowners, Dwelling and Renters Insurance" and the respective
Spanish translations of same as described herein and as set forth in the attached
exhibits attached to this Order and incorporated into this Order by reference,
and that the corresponding revisions and additions to the Texas Automobile
Rules and Rating Manual, Section I, General Rules, 16; the Texas Standard
Provisions for Automobile Policies, Special Instructions for the Texas Personal
Auto Policy, new number 12; the Texas Personal Lines Manual, Homeowners Section
V. General Requirements, F, and the Dwelling Section V. General Requirements,
new item I, as described herein and set forth in the exhibits attached to
this Order and incorporated into this Order by reference, be and hereby are
adopted and applicable to be effective on the 90th day after publication of
the notification of the Commissioner's action in the
Texas Register
.
TRD-200203012
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: May 15, 2002