Emergency Sections An agency may adopt a new or amended section or repeal an existing section on an emergency basis if it determines that such action is necessary for the public health, safety, or welfare of this state. The section may become effective immediately upon filing with the Texas Register, or on a stated date less than 20 days after filing, for no more than 120 days. The emergency action is renewable once for no more than 60 days. Symbology in amended emergency sections. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 22. EXAMINING BOARDS Part XXIII. Texas Real Estate Commission Chapter 535. Provisions of the Real Estate License Act Licensed Real Estate Inspectors 22 TAC sec.535.205 The Texas Real Estate Commission adopts on an emergency basis new sec.535. 205, concerning real estate inspectors licensed under prior law. The new section implements transitional provisions of Senate Bill 432, 72nd Legislature, 1991, which became effective September 1, 1991. The new section permits a person licensed on September 1, 1991, to act as an inspector until the person's current license expires or is suspended or revoked by the commission. Currently licensed inspectors may receive a license as an inspector under the new law by applying for the new license and satisfying the experience and education requirements set by Senate Bill 432. To receive a new license immediately, the inspector must have performed at least 75 inspections within the 12 months prior to the application and must have completed 38 classroom hours of approved courses in addition to those required for original licensing. A person who cannot presently meet the requirements for licensing under the new law may receive a transitional license which cannot be renewed. To receive a new license, the holder of a transitional license must have performed 75 inspections within 24 months prior to the expiration of the transitional license and must have completed the required courses. The new section also adopts by reference a form which must be used by a currently licensed inspector to establish that the inspector has performed the required real estate inspections; if the inspector has performed at least 200 real estate inspections over at least 15 months, the inspector also may sponsor apprentices or inspectors-in-training. Inspections limited to structural items only or to equipment and systems only are given half credit for the purpose of determining the number of inspections required for a license or to sponsor other inspectors. If a currently licensed inspector applies for a license under the new law in connection with a renewal application, the new section requires that inspector to pay the $50 renewal fee. Licenses issued to inspectors under the prior law begin expiring in September 1991. The Texas Real Estate Commission has therefore determined that a potential reduction in the availability of inspection services would constitute an imminent peril for the public welfare and that the new section implementing the transitional provisions of Senate Bill 432 should be given immediate effect. The new section is adopted on an emergency basis under Texas Civil Statutes, Article 6573a, sec.5(h), which provide the Texas Real Estate Commission with the authority to make and enforce all rules and regulations necessary for the performance of its duties. sec.535.205. Inspectors Licensed under Prior Law. (a) A person licensed as a real estate inspector on the effective date of Texas Civil Statutes, Article 6573a, sec.23 (the Act), may continue to act as a real estate inspector until the person's license expires or is suspended or revoked by the commission. The person is eligible to obtain an inspector license under the Act if the person does the following: (1) applies to the commission for issuance of an inspector license prior to the expiration of the current license; (2) pays a license renewal fee of $50 if the application is filed in connection with a renewal of the current license; (3) provides proof on a form approved by the commission that the person has completed 75 real estate inspections in the 12 months before filing the application; and (4) provides evidence satisfactory to the commission that the person has successfully completed 38 classroom hours of core real estate inspection courses as defined by the Act in addition to any courses required for an original license prior to the effective date of the Act. (b) The commission adopts by reference Inspection Log REI 1-1 approved by the commission in 1991. This form is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. (c) If a person licensed as an inspector on the effective date of the Act applies for a license more than 30 days prior to the expiration of an existing license and meets all requirements for issuance of an inspector license under this section and the Act, the commission shall issue a license valid until the expiration date of the current license. If the application is filed in connection with a renewal of a license and all requirements have been met for issuance of a license under the Act, the commission shall issue a license valid for one year. (d) If an applicant fails to satisfy a requirement under this section for issuance of a license in connection with a renewal of a current license, the commission shall issue a transitional license valid for 12 months. A transitional license may not be renewed. A person holding a transitional license is eligible to receive an inspector license under the Act if the person completes 75 inspections during the 24-month period prior to the expiration of the transitional license and satisfies educational requirements set by the Act. (e) A person licensed as an inspector on the effective date of the Act may not sponsor an apprentice inspector or an inspector-in-training until the person has certified to the commission that the person has performed at least 200 real estate inspections, has performed inspections as a real estate inspector for at least 15 months, and has successfully completed 38 classroom hours of core real estate courses as provided in this section. (f) For the purpose of determining the number of inspections required for a license or to sponsor apprentices or inspectors-in-training, an inspection of structural items only or equipment and systems only shall be given half credit. An inspection which includes structural items and equipment and systems shall be given full credit as one inspection. Issued in Austin, Texas, on September 10, 1991. TRD-9111232 Mark A. Moseley General Counsel Texas Real Estate Commission Effective date: September 11, 1991 Expiration date: January 9, 1992 For further information, please call: (512) 465-3900 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 5. Property and Casualty Insurance Subchapter E. Texas Catastrophe Property Insurance Association Standard Policy Forms-Windstorm and Hail 28 TAC sec.5.4201 The Texas Department of Insurance adopts on an emergency basis an amendment to sec.5.4201, concerning standard Texas Catastrophe Property Insurance Association Forms-windstorm and hail. This amendment adopts by reference Form Number TCPIA- 29, Texas Catastrophe Property Insurance Policy-Windstorm and Hail, Texas Special Mobile Home Windstorm and Hail Policy Mandatory Endorsement, for attachment to insurance policies effective through the Texas Catastrophe Property Insurance Association. The amendment is necessary to add new policy provisions to the Texas Catastrophe Property Insurance Policy-Windstorm and Hail and to the Texas Special Mobile Home Windstorm and Hail Policy to provide for the prompt payment of claims required by the Insurance Code, Article 21.55, as provided under House Bill 2, enacted by the 72nd Texas Legislature. The new provisions provide for specific actions to be taken by the insured and the insurer within certain specified time periods for the prompt payment of claims. An imminent peril to the public welfare requires adoption of the amendment on an emergency basis in order for insureds to have available the new policy provisions applicable for prompt payment of claims for policies issued on or after September 1, 1991, the effective date of the change in the Insurance Code, Article 21.55. The board has filed with the Office of the Secretary of State Texas Register section, copies of the new mandatory endorsement form which s5. 4201 adopts by reference under this amendment. Persons desiring copies of the new mandatory endorsement, Form TCPIA-29, may obtain copies from the Property Division (Mail Code 103-1A), State Board of Insurance, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104. The amendment is adopted on an emergency basis under the Insurance Code, Article 21.49, sec.8, which authorizes the State Board of Insurance to approve policy forms and endorsements for the Texas Catastrophe Property Insurance Association. sec.5.4201. Standard Texas Catastrophe Property Insurance Association Forms- Windstorm and Hail. The State Board of Insurance adopts by reference the standard Texas Catastrophe Property Insurance Association forms-[for] windstorm and hail. Specimen copies of these forms are available from the Texas Catastrophe Property Insurance Association. P.O. Box 2930, Austin, Texas 78767. They are also available from the Property Section
    [Division 011-1], State Board of Insurance, 333 Guadalupe Street, P.O. Box 149104
      [1110 San Jacinto Boulevard], Austin, Texas 78714-9104
        [78701-1998]. The forms are more specifically identified as follows: (1) TCPIA Form 29 -mandatory endorsement. Effective September 1, 1991. (2)
          [(1)] TCPIA[,] Form 300-mandatory breakaway wall exclusion endorsement. Effective July 1, 1987; (3)
            [(2)] TCPIA[,] Form 365-replacement cost endorsement-household goods. Effective November 15, 1985; (4)
              [(3)] TCPIA[,] Form 500-$100 deductible clause other than one or two family dwellings. Effective March 15, 1973; (5)
                [(4)] TCPIA Form 510-dwelling percentage deductible clause. Effective May 1, 1972; (6)
                  [(5)] TCPIA Form 520-dwelling $100 deductible clause. Effective May 1, 1972; (7)
                    [(6)] TCPIA Form 530-dwelling $250 deductible clause. Effective 1, 1972; (8)
                      [(7)] TCPIA Form 560-beach area percentage deductible clause. Effective May 1, 1972; (9)
                        [(8)] TCPIA Form 570-mobile home percentage deductible clause. Effective August 17, 1976; (10)
                          [(9)] TCPIA Form 575-mobile home percentage deductible clause. Effective August 17, 1976. Issued in Austin, Texas, on September 12, 1991. TRD-9111293 Angelia Johnson Assistant Chief Clerk Texas Department of Insurance Effective date: September 12, 1991 Expiration date: January 10, 1992 For further information, please call: (512) 463-6328 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part IX. Commission on Jail Standards Chapter 273. Medical Services in County Jails 37 TAC sec.273.5 The Commission on Jail Standards is renewing the effectiveness of the emergency adoption of amended sec.273.5, for a 60-day period effective September 26, 1991. The text of amended sec.273.5 was originally published in the June 7, 1991, issue of the Texas Register (16 TexReg 3105). Issued in Austin, Texas, on September 11, 1991. TRD-9111227 Jack E. Crump Executive Director Commission on Jail Standards Effective date: September 26, 1991 Expiration date: November 25, 1991 For further information, please call: (512) 463-5505 Texas Department of Insurance Exempt Filing Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L (Editor's note: As required by the Insurance Code, Article 5.96 and Article 5.97, the Register publishes notices of actions taken by the State Board of Insurance pursuant to Chapter 5, Subchapter L, of the Code. Board action taken under these articles is not subject to the Administrative Procedure and Texas Register Act. The text of the material being adopted will not be published, but may be examined in the offices of the Texas Department of Insurance, 333 Guadalupe, Austin.) The Texas Department of Insurance adopted on an emergency basis on August 21, 1991, various endorsements and manual rule changes which add or amend property insurance policy conditions affecting cancellation, nonrenewal, and the prompt payment of claims for property insurance policies as provided under House Bill 2, enacted by the 72nd Texas Legislature. The department also adopted rules governing the application of surcharges on renewal policies because of previous claims including the setting or appropriate surcharge percentages. Pursuant to Article 5.96(i), the board finds there is a clear and compelling need to adopt these changes on an emergency basis in order for the new provisions to be applicable on and after September 1, 1991, the effective date set out in House Bill Number 2. The following new endorsements have been adopted to incorporate the new and revised provisions for cancellation, nonrenewal, and prompt payment of claims into the appropriate policies: Texas Homeowners Policy-Endorsement HO-325, Multi-Purpose Endorsement-Mandatory, Endorsement HO-330, Premium Surcharge- Claims, and Forms HO-331, Notification to Policyholder-Claims; Texas Standard Policy -Form 29, Multi-Purpose Endorsement-Mandatory, Form 29A, Premium Surcharge-Claims, and Form 29B, Notification to Policyholder-Claims; Texas Standard Farm and Ranch Owners Policy-Form FRO-470, Multi-Purpose Endorsement- Mandatory, Form FRO-480, Premium Surcharge-Claims, and Forms 481, Notification to Policyholder-Claims; Texas Businessowners Policy-Form TBOP-8A, Texas Business owners Policy Mandatory Endorsement; Texas Electronic Equipment Protection Policy-EEP-40, Electronic Equipment Protection Policy Mandatory Endorsement; and Certain revisions to the rules in the Texas general basis schedules were also adopted. These endorsements provide the following changes. Revised cancellation provisions (Form 29, Multi-Purpose Endorsement-Mandatory, Endorsement HO-325, Multi-Purpose Endorsement-Mandatory and Form FRO-470, Multi-Purpose Endorsement- Mandatory) are as follows: The effective date of cancellation cannot be before the 10th day after the company mails notice of cancellation; The submission of a fraudulent claim has been added as a reason for cancellation; A condition has been added requiring pro rata cancellation if the company refuses to provide additional coverage or reduces or restricts coverage. The cancellation rules in the Texas general basis schedules have been amended to indicate the cancellation is on a pro rata basis when the company refuses to provide additional coverage or reduces or restricts coverage; The mortgage clause has been amended to give the mortgagee the same number of days notice as the insured when the company cancels and 10 days notice if the insured cancels. Revised Refusal to Renew provisions (Form 29, Multi-Purpose Endorsement- Mandatory, Endorsement HO-325, Multi-Purpose Endorsement-Mandatory and Form FRO- 470, Multi-Purpose Endorsement-Mandatory) are as follows: A condition has been added that the refusal to renew a policy cannot be because of claims for losses resulting from natural causes; A condition has been added allowing the company to refuse to renew if the insured has filed three or more claims in any three- year period. In addition, this condition also provides that if the insured files two claims in less than a three-year period the company must notify the insured that if a third claim is filed, the company may refuse to renew. New Cancellation and Refusal to Renew Provisions (Applicable to all property policies.) A new provision has been added to all property policies prohibiting an insurer from cancelling or refusing to renew a policy based solely on the fact the policyholder is an elected official. Surcharge Endorsements and Rules (Form 29A, Premium Surcharge-Claims, Form 29B, Notification to Policyholder-Claims, Endorsement HO-330, Premium Surcharge- Claims, Form HO-331, Notification to Policyholder-Claims, Form FRO-480, Premium Surcharge-Claims and Form FRO-481, Notification to Policyholder-Claims.) In accordance with a specified number of claims within a specified policy period, various surcharges may be applied to the policy premium. Forms have been approved to indicate a premium surcharge has been applied to the policy premium; Forms have been approved for notification to an insured who has filed two claims in less than a three-year period; New rules in the Texas general basis schedules have been approved to allow premium surcharges for a specified number of claims and to require notification to insureds who have filed two claims in less than a three-year period. Prompt Payment of Claims (Applicable to all Property Policies.) The policy conditions have been revised to include certain requirements for the payment of claims. The insured must provide the company written notice of a claim; Companies must acknowledge receipt of the claim, commence any investigation of the claim, and request from the insured all items, statements, and forms the company will require from the insured within 15 days after receipt of the notice of claim. Companies may request additional information during the investigation. After receipt of the information requested by the company, the company must notify the insured whether the claim will be paid or has been denied or whether more information is needed, within 15 business days or 30 days if arson is suspected; The company must either give reason for denying the claim, pay the claim, or request additional time to process the claim. If additional time is requested, the claim must be paid or denied within 45 days after the request for more time; Payment of claim must be made within five business days after the insured is notified that the claim will be paid. If payment of the claim depends on the performance of an act by the insured, payment of the claim must be made within five business days after the act is performed. Notice of Settlement of Liability Claim (Endorsement Number HO-325, Multi- Purpose Endorsement-Mandatory, Form FRO-470, Multi-Purpose Endorsement-Mandatory and Form Number TBOP-8A, Texas Businessowners Policy Mandatory Endorsement.) A condition has been added to those policies containing liability coverage that requires the insurer to notify the insured within 10 days after the date an offer of settlement has been made or within 30 days after a settlement has been made. These changes are effective September 1, 1991. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Administrative Procedure and Texas Register Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on September 12, 1991. TRD-9111296 Angelia Johnson Assistant Chief Clerk Texas Department of Insurance Effective date: September 12, 1991 Expiration date: January 10, 1992 For further information, please call: (512) 463-6328