Adopted Sections 
 An agency may take final action on a section 30 days after a proposal has been 
published in the Texas Register. The section becomes effective 20 days after the 
agency files the correct document with the Texas Register, unless a later date 
is specified or unless a federal statute or regulation requires implementation 
of the action on shorter notice. 
 If an agency adopts the section without any changes to the proposed text, only 
the preamble of the notice and statement of legal authority will be published. 
If an agency adopts the section with changes to the proposed text, the proposal 
will be republished with the changes. 
 
  
  TITLE 16. ECONOMIC REGULATION 
 Part I. Railroad Commission of Texas 
  Chapter 5. Transportation Division 
  
  Subchapter M. Motor Bus Companies 
 
  16 TAC sec.5.249 
 
  The Railroad Commission of Texas adopts an amendment to  sec.5.249, concerning 
operations wholly within certain cities and their suburbs, without changes to 
the proposed text as published in the April 7, 1992, issue of the Texas Register  
(17 TexReg 2451). 
 The new section is adopted in response to a petition filed by Brown and 
Dillaha. 
 The amendment includes the Pantex plant as a suburb of Amarillo. As a result, 
bus service between Amarillo and the Pantex plant will not require authority 
from the commission. 
 A comment was made by the City of Amarillo. It has no objection to the 
amendment. 
 The amendment is adopted under the Texas Motor Bus Act, Texas Civil Statutes, 
Article 911a, sec.4(a)(1), which authorize the commission to prescribe all rules 
and regulations necessary for the governing of public service rendered by motor 
bus companies. 
 
  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 June 8, 1992. 
 TRD-9207984 
  Lena Guerrero 
 Chairman 
 Railroad Commission of Texas 
  Effective date: July 1, 1992 
 Proposal publication date: April 7, 1992 
 For further information, please call: (512) 463-7096 
         
  Part VIII. Texas Racing Commission 
  Chapter 303. General Provisions 
  
  Subchapter F. Licensing Persons with Criminal Backgrounds 
 
  16 TAC sec.303.201 
 
  The Texas Racing Commission adopts an amendment to sec.303.201, concerning 
general authority, without changes to the proposed text as published in the 
April 17, 1992, issue of the Texas Register (17 TexReg 2667). 
 The amendment is adopted to ensure that the commission's licensing program is 
conducted in accordance with applicable state laws. 
 The amendment clarifies the procedures the commission will use to revoke, 
suspend, or deny a license for past criminal activity. 
 No comments were received regarding the adoption of the amendment. 
 The amendment is adopted under Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the commission to adopt rules for conducting racing with 
wagering and for administering the Texas Racing Act; and sec.7.04, which 
authorizes the commission to revoke, suspend, or deny an occupational license 
for past criminal activity; and Texas Civil Statutes, Article 6252-13c and 
Article 6252-13d, which authorize the commission to adopt guidelines for 
licensing persons with criminal backgrounds. 
 
  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 June 8, 1992. 
 TRD-9207835 
  Paula Cochran Carter 
 General Counsel 
 Texas Racing Commission 
  Effective date: July 1, 1992 
 Proposal publication date: April 17, 1992 
 For further information, please call: (512) 794-8461 
         
  
  16 TAC sec.303.202 
 
  The Texas Racing Commission adopts an amendment to sec.303.202, concerning 
guidelines, without changes to the proposed text as published in the April 21, 
1992, issue of the Texas Register (17 TexReg 2844). 
 The amendment is adopted to ensure that the commission's licensing program is 
conducted in accordance with applicable state laws. 
 The amendment clarifies the guidelines the commission will use to revoke, 
suspend, or deny a license for past criminal activity. 
 No comments were received regarding the adoption of the amendment. 
 The amendment is adopted under Texas Civil Statutes, Article 179e, sec.3.02, 
which authorizes the commission to adopt rules for conducting racing with 
wagering and for administering the Texas Racing Act; and sec.7.04, which 
authorize the commission to revoke, suspend, or deny an occupational license for 
past criminal activity; and Texas Civil Statutes, Article 6252-13c and Article 
6252-13d, which authorize the commission to adopt guidelines for licensing 
persons with criminal backgrounds. 
 
  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 June 8, 1992. 
 TRD-9207834 
  Paula Cochran Carter 
 General Counsel 
 Texas Racing Commission 
  Effective date: July 1, 1992 
 Proposal publication date: April 21, 1992 
 For further information, please call: (512) 794-8461 
         
  Chapter 305. Licenses for Pari-mutuel Racing 
  
  Subchapter B. Individual Licenses 
 
  Specific Licensees 
 
  16 TAC sec.305.51 
 
  The Texas Racing Commission adopts new sec.305.51, concerning leadout, without 
changes to the proposed text as published in the April 17, 1992, issue of the 
Texas Register  (17 TexReg 2668). 
 The section is adopted to ensure that leadouts participating in pari-mutuel 
racing are trained to treat racing greyhounds with care. 
 The new section establishes the licensing requirements for leadouts. 
 No comments were received regarding the adoption of the section. 
 The new section is adopted under Texas Civil Statutes, Article 179e, sec.3. 02, 
which authorize the commission to adopt rules for conducting racing with 
wagering and for administering the Texas Racing Act and sec.7.02, which 
authorize the commission to specify the qualifications and experience necessary 
for the various categories of licensees. 
 
  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 June 8, 1992. 
 TRD-9207833 
  Paula Cochran Carter 
 General Counsel 
 Texas Racing Commission 
  Effective date: July 1, 1992 
 Proposal publication date: April 17, 1992 
 For further information, please call: (512) 794-8461 
         
  Chapter 309. Operation of Racetracks 
  
  Subchapter B. Horse Racetracks 
 
  Operations 
 
  16 TAC sec.309.196 
 
  The Texas Racing Commission adopts an amendment to sec.309.196, concerning 
traffic in stable area, without changes to the proposed text as published in the 
April 17, 1992, issue of the Texas Register (17 TexReg 2668). 
 The amendment is adopted to ensure that pari-mutuel racing is safe for all 
licensees. 
 The amendment clarifies the individuals that are not allowed to operate motor 
vehicles in the stable area. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the commission to adopt rules for conducting racing with pari-
mutuel wagering and for administering the Texas Racing Act and sec.6.06, which 
authorize the commission to adopt rules relating to the operation of racetrack. 
 
  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 June 8, 1992. 
 TRD-9207832 
  Paula Cochran Carter 
 General Counsel 
 Texas Racing Commission 
  Effective date: July 1, 1992 
 Proposal publication date: April 17, 1992 
 For further information, please call: (512) 794-8461 
         
  
  Subchapter C. Greyhound Racetracks 
 
  Operations 
 
  16 TAC sec.309.360 
 
  The Texas Racing Commission adopts new sec.309.360, concerning educational 
opportunities, with changes to the proposed text as published in the April 21, 
1992, issue of the Texas Register (17 TexReg 2851). 
 The new section is adopted to ensure that participants in pari-mutuel greyhound 
racing having educational opportunities at the racetracks. 
 The new section requires greyhound racetracks to conduct seminars and training 
programs for occupational licensees and to maintain a trainer's library. The 
change from the proposed text requires an association to consult with the Texas 
Greyhound Association in the implementation of the section. 
 Oral comments were received from Valley Racing Association regarding the 
adoption of the section. The Association questioned the usefulness of the 
trainer's library and the ability of the racetracks to effectively encourage 
trainers to use the library. In response to the comments, the commission changed 
the proposal to require the racetracks to seek the assistance of the Texas 
Greyhound Association in developing the trainer's library. The Texas Greyhound 
Association is the official breed registry for greyhounds and represents many 
kennel owners and greyhound trainers. 
 The new section is adopted under Texas Civil Statutes, Article 179e, sec.3. 02, 
which authorize the commission to adopt rules for conducting racing with pari-
mutuel wagering and for administering the Texas Racing Act and sec.6.06, which 
authorize the commission to adopt rules relating to the operation of racetracks. 
 
 
  sec.309.360. Educational Opportunities. 
 
  (a) At least once every three years, an association shall conduct a seminar 
designed to enhance the ability of the occupational licensees working at the 
association's racetrack to perform their duties. The association shall videotape 
the seminar and provide a copy of the videotape to each pari-mutuel greyhound 
racetrack in this state. 
  
  (b) An association shall provide a trainers' library that contains the latest 
information on the proper care and handling of greyhounds, information on state-
of-the-art equipment for racing, training, and caring for greyhounds, and 
videotapes or other audio-visual information and adequate equipment for viewing 
the videotapes or information. The association shall ensure the library is well-
maintained and supplied and is open for use by the occupational licensees at all 
times that occupational licensees are present on association grounds. The 
association shall publicize the availability of the library and the materials 
contained in the library and shall encourage its use by occupational licensees. 
The association shall seek the assistance and input of the Texas Greyhound 
Association in implementing this subsection. 
  
  (c) An association shall develop and implement a training program for 
leadouts. 
 
  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 June 8, 1992. 
 TRD-9207831 
  Paula Cochran Carter 
 General Counsel 
 Texas Racing Commission 
  Effective date: July 1, 1992 
 Proposal publication date: April 21, 1992 
 For further information, please call: (512) 794-8461 
         
  Chapter 311. Conduct and Duties of Individual Licensees 
  
  Subchapter B. Specific Licensees 
 
  Licensees for Greyhound Racing 
 
  16 TAC sec.311.171 
 
  The Texas Racing Commission adopts amendment to sec.311.171, concerning kennel 
owners, without changes to the proposed text as published in the December 27, 
1991, issue of the Texas Register (16 TexReg 7695). 
 The amendment is adopted to ensure that pari-mutuel racing is humane for racing 
greyhounds. 
 The section describes the responsibilities of kennel owners regarding the use 
of greyhounds that have been trained with live lures. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the commission to adopt rules for conducting racing with pari-
mutuel wagering and for administering the Texas Racing Act and sec.6.06, which 
authorize the commission to adopt rules relating to the operation of racetracks. 
 
  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 June 8, 1992. 
 TRD-9207830 
  Paula Cochran Carter 
 General Counsel 
 Texas Racing Commission 
  Effective date: June 29, 1992 
 Proposal publication date: December 27, 1991 
 For further information, please call: (512) 794-8461 
         
  Chapter 313. Officials and Rules of Horse Racing 
  
  Subchapter B. Entries, Declarations, and Allowances 
 
  Entries 
 
  16 TAC sec.313.111 
 
  The Texas Racing Commission adopts an amendment to sec.313.111, concerning age 
restrictions, without changes to the proposed text as published in the April 17, 
1992, issue of the Texas Register (17 TexReg 2670). 
 The amendment is adopted to ensure that the supply or horses for pari-mutuel 
racing is maximized. 
 The amendment deletes the age limitation for racing a maiden horse. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the commission to adopt rules for conducting racing with pari-
mutuel wagering and for administering the Texas Racing Act and sec.6.06, which 
authorize the commission to adopt rules relating to the operation of racetracks. 
 
  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 June 8, 1992. 
 TRD-9207829 
  Paula Cochran Carter 
 General Counsel 
 Texas Racing Commission 
  Effective date: July 1, 1992 
 Proposal publication date: April 17, 1992 
 For further information, please call: (512) 794-8461 
         
  
  Subchapter C. Claiming Races 
 
  16 TAC sec.313.304 
 
  The Texas Racing Commission adopts an amendment sec.313.304, concerning claim 
irrevocable, without changes to the proposed text as published in the April 17, 
1992, issue of the Texas Register (17 TexReg 2670). 
 The amendment is adopted to ensure that pari-mutuel racing is conducted fairly 
and with the utmost integrity. 
 The amendment clarifies the status of a claim of a horse that is excused before 
it is a starter. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the commission to adopt rules for conducting racing with pari-
mutuel wagering and for administering the Texas Racing Act and sec.6.06, which 
authorize the commission to adopt rules relating to the operation of racetracks. 
 
  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 June 8, 1992. 
 TRD-9207828 
  Paula Cochran Carter 
 General Counsel 
 Texas Racing Commission 
  Effective date: July 1, 1992 
 Proposal publication date: April 17, 1992 
 For further information, please call: (512) 794-8461 
         
  
  TITLE 28. INSURANCE 
 Part I. Texas Department of Insurance 
  Chapter 3 Life, Accident, and Health Insurance 
  
  Subchapter FF. Credit Life and Accident and Health Insurance 
 
  General Provisions 
 
  The State Board of Insurance of the Texas Department of Insurance adopts 
amendments to sec.sec.3.5001, 3.5102, 3.5103, 3.5104, 3.5105, 3.5106, 3.5201- 3. 
5203, 3.5205, 3.5305, 3.5501, 3.5602-3.5604, 3.5607, 3.5608, 3.5610, 3.5702, 3. 
5901-3.5904, 3.5906, 3.6101 and 3.6402 and adopts two new sections to this 
subchapter, 3.5110 and 3.5111. Sections 3.5104-3.5106, 3.5201, 3.5305, 3.5501, 
3.5702, 3.5901, 3.5111, and 3.6101 are adopted with changes to the proposed text 
as published in the March 20, 1992, issue of Texas Register (17 TexReg 2101). 
Sections 3.5001, 3.5102, 3.5103, 3.5202, 3.5103, 3.5202, 3.5203, 3.5205, 3.5602-
3.5604, 3.5607, 3.5608, 3.5610, 3.5902-3.5904, 3.5906, and 3. 6402 are adopted 
without changes and will not be republished. 
 These amendments are necessary to comply with legislative changes in Insurance 
Code, Article 3.53, to clarify existing requirements, to inform insurers of 
filing requirements, and to correct inequities in the current subchapter. 
 Section 3.5001 outlines the statutory authorization for the rule and its scope 
after legislative amendments. The amendment to sec.3.5102 eliminates a conflict 
with sec.3.5105 (b)(7) regarding the time during which a policy must be 
delivered to the insured. Section 3.5103 requires the mailing address of the 
insurer to be listed on individual policies or certificates of insurance and 
replaces the terms "revolving loan" and "charge account" with the term "open end 
transaction." The circumstances under which refunds will be due are clarified in 
sec.3.5104. Section 3.5105 provides requirements for an enrollment form or 
notice of proposed insurance and an application. These include a statement that 
upon acceptance of the insurance by the insurer and not later than 45 days after 
the date upon which the indebtedness is incurred or, not later than 30 days from 
the date of application for coverage on an open-end transaction, the policy or 
certificate of insurance shall be delivered. Further, the section prohibits an 
insurer from requiring an applicant from certifying that he is not eligible for 
insurance, but permits the attestation of employment or good health. Section 
3.5106 is broadened extensively and specifies provisions necessary to prevent a 
policy or certificate of insurance from being presumed to be unjust, 
inequitable, misleading, deceptive or contrary to law or to the public policy of 
this state. New sec.3.5110 defines open and closed end transactions which were 
not previously defined in the subchapter. The form requirements for open end 
transactions are set out in new  sec.3.5111. Section 3.5201 requires notations 
on submitted policy forms that will allow the Department to clearly identify 
rate-regulated credit life and credit accident and health insurance forms. 
Section 3.5202 eliminates a minimum premium charge. Section 3.5203 requires a 
change in unearned premium reserve methods to be consistent with refund 
requirements of sec.3.5901. Certificates of insurance must be reflective of the 
provisions of the group policy in accordance with the amendment to sec.3.5205. 
Section 3.5305 provides that certain exclusions will not remain effective after 
termination of the contestable period and amends the age restrictions. Section 
3.5501 (B)(ii) allows an insurer to restrict coverage for normal pregnancy and 
deletes an exception for complications of pregnancy. Such complications fall 
within the definition of disability which is used for other illnesses. 
Subparagraph (E) of the section clarifies the definition of disability. The 
amendment to sec.3. 5602 requires submission of requests for a deviated rate 
within such time as to allow adequate review by the department. The term "plan 
of insurance" is deleted from sec.3.5603 for the reason that it is not essential 
in determining the reasonableness of a deviated rate. Amendments to the 
remainder of the section make it consistent with the experience reports required 
under sec.3. 5702. The change in the title of sec.3.5604 corrects a 
typographical error. Section 3.5607 requires notification to the department of a 
change in insurers when an upward deviated rate is in effect. The amendment to 
sec.3.5608 deletes obsolete language. Section 3.5610 specifies the form to use 
in requesting a deviation; the form reflects deletion of the term "plan of 
insurance." The board has filed copies of such forms with the Office of the 
Secretary of State, Texas Register Section. Persons wishing to obtain copies of 
the forms may obtain them from the Texas Department of Insurance, Publications 
Department, Mail Code 108-5A, P. O. Box 149104, Austin, Texas 78714-9104. 
Amendments to sec.3.5702 provide for reporting of data using loan duration and 
changing definitions for mean insurance in force and earned premium at 
presumptive rate. Copies of the forms referenced in this section, including 
forms changed as a result of comment, have been filed with the Office of the 
Secretary of State, Texas Register Section. Section 3.5901 changes the method by 
which premium refunds are calculated, increasing the refunds for accident and 
health and net pay life coverage. Insurers are required by sec.3.5902 to furnish 
creditors with methods of calculating refunds. Section 3.5903 clarifies the 
insurer's responsibility for paying refunds, and sec.3.5904 requires the method 
of refund to be set out in the policy or certificate of insurance. Insurers are 
required to use the fifteen day rule when computing refunds for partial months 
in accordance with sec.3.5906. The method for computing minimum policy reserves 
is specified in sec.3.6101. The adjustment does not substantially change the 
amount of reserves but does bring the reserve basis into agreement with the 
minimum standards for reserves as set forth in Insurance Code, Article 3.28. 
Section 3.6402 is a savings clause. 
 <p Summary of Comments . The comments which were received in writing and at the 
public hearing on these rules are summarized by reference to each section number 
by which the comments were received. sec.3.5001. A comment was made that the 
language of this section went beyond the statutory authority of the agency 
because the commenter believed that the words "which shall include any such 
credit insurance which purports to be on a "cost free", "no cost," "give away," 
or other "no charge" basis insofar as a debtor is concerned" violates the 
statute. Another commenter proposed an additional introductory paragraph to 
reaffirm the public interest and the availability of credit insurance and the 
vitality of the industry. The board responds that the language with respect to 
the no cost provisions is the same language which is currently in the rule and 
is within the statutory authority of the board as the statute recognizes charges 
which are made directly or indirectly by the debtor. As there is always an 
indirect charge to the debtor for the "no cost" coverage, these rules are needed 
in order to afford protection to the consumers. The board does not believe that 
additional introductory paragraphs are appropriate in the rules which are 
written to clarify the statutes and provide regulatory authority for the agency. 
The promotion or endorsement of a form of coverage or a segment of the industry 
is not appropriate for these rules. 
 sec.3.5104. Several comments were made on this rule and comments which were 
made concerning specific subsections of the rule are discussed with respect to 
each subsection. There were several comments about subsection (a)(1), concerning 
the need for clarification of the refunding of credit life premiums when an 
accident and health benefit is paid. The board agrees that there appears to be 
some confusion in this area and the last sentence of subsection (a)(1) has been 
changed to clarify the provision. Concerning subsection (a)(2) several comments 
were made against requiring gross premium refund of the credit life insurance 
when death benefits are not payable due to cited exclusions. The board responds 
that it is recognized public policy that if the death benefit is not paid due to 
exclusions in the policy, the amount due as a benefit is to be no less than the 
premiums paid for the coverage. Almost all credit policies currently being used 
in Texas state that they will return the premium in the event of such exclusion. 
Allowing the company the right to earn a portion of the premium for which they 
do not assume any risk will reduce the loss ratios and will reduce consumer 
protections currently being provided. One commenter suggested that a distinction 
should be made in requiring refunds between refunds due to death and those due 
to recision of a policy. The distinction should be made, in the opinion of that 
commenter, because the company had provided insurance up to the date of death 
and therefore had assumed the risk and should be entitled to the premium. The 
Office of Consumer Protection felt that the refunds should be required and felt 
that even though they might in some cases be a small amount that they were 
important to consumers. This comment was also agreed to by other commenters one 
of whom suggested that with open end loans it would be difficult to determine 
what premium should be returned. The board agreed to allow certain adjustments 
if the coverage was written on open-end transactions; however, the language 
remains unchanged for other types of coverage. Concerning subsection (a)(3) 
there were several comments asking for clarification of the requirement of 
refunding the credit accident and health insurance premium when termination of 
credit life insurance is by payment of a death benefit. The board agrees that 
there appears to be some confusion in this area and the last sentence of 
subsection (a)(3) has been changed to clarify the provision. 
 sec.3.5105 (d). Comments were received that the applicant should be allowed to 
state whether or not the applicant was "eligible." One commenter felt that a 
provision that would not allow the insurer to require the applicant to state 
that they were not eligible under any conditions would not be a burden on the 
borrower. One commenter also objected to the grammatical way in which the rule 
was written. The board believes that while applicants can be asked questions 
relating to eligibility they should not be forced to state that they are 
"eligible". Eligibility is an underwriting function and the applicant is not 
furnished with sufficient information to determine his or her own eligibility. 
Further the inclusion of conclusory certification of eligibility on the part of 
an applicant can lead to post-claim underwriting. The board has, however, 
changed the language of this provision so that there is no double negative and 
the provision is clearer. A number of comments were received about the perceived 
conflict between subsections (d) and (e). Some commenters felt that subsection 
(e) contradicted subsection (d) because it required an attestation of 
eligibility. Some commenters indicated that the provision would not allow an 
attestation as to age for eligibility and recommended including age. In the 
opinion of the board these subsections are not in conflict. Subsection (e) 
merely requires that if the company wants to require conditions of employment 
and/or good health the company needs to obtain a signature attesting to those 
conditions from the debtor and/or joint debtor. Without a signature companies 
have no basis to contest material misstatements. Subsection (e) refers to 
conditions of eligibility which is different from a requirement that a person 
acknowledge their noneligibility for coverage which is prohibited by subsection 
(d). There is no need to include an attestation of age because that is already 
covered by sec.3.5105(b)(2). 
 sec.3.5106 (a). Comments were received objecting to the use of statutory 
presumptions with respect to the requirements of subsection (a). Some commenters 
believed that this section limited policy forms only to the standard provisions 
and precluded use of alternative language. Some commenters suggested that 
subsection (a) was inconsistent with authorizing statute and one commenter 
suggested that paragraph (2)(G) with respect to the deeming of notice to the 
insurer was inconsistent with other statutory provisions and did not need to be 
addressed in this rule. In the opinion of the board these rules do not require 
or mandate language but are intended to put companies on notice that the board 
will presume that certain provisions are statutorily required. Any form failing 
to contain these provisions shall be presumed to be unjust, unfair, inequitable, 
misleading, deceptive, or encouraging misrepresentation. These rules are 
designed to allow guidance on such presumptions with respect to both individual 
and group policies. They are an attempt to allow for acceptable language for 
both individual and group forms, allowing companies to utilize the same language 
for both forms, with one exception, and conform to the provisions of the statute 
covering both individual and group policies. Nearly all of the language proposed 
to be a part of the policy or the certificate of insurance is already in the 
currently used forms as the language closely corresponds to the statutorily 
required provisions of the Insurance Code. Comments on specific subsections and 
responses to them are listed separately. Subsection (a)(1), comments were 
received that the companies need to use eight to 10 point type rather than 14 
point type. The board agrees with these comments and this provision will be 
changed to require 10 point type for all printed material. Concerning subsection 
(a)(2)(A), several comments were received concerning a perception of a 
distinction between policyholder and payor as two separate entities. The board 
responds that this perception is correct. In some situations policyholders and 
payor are two entities and in other situations they are one and the same. The 
language of this rule parallels the group credit life statute concerning the 
grace period. The requirement in this rule is that the language be substantially 
similar to the language in the rules and companies are free to propose other 
variations of text if they believe the version in the rules will be confusing in 
a given context. Concerning subsection (a)(2)(D), comments were received stating 
that the proposed rules will not allow insurers to contest credit accident and 
health fraudulent misstatements beyond the two-year period. The board concurs 
with this comment and the section has been changed to clarify this situation. 
Subsection (a)(2)(E), a comment was received that the rule did not allow for 
adjustments if a debtor misstated his or her age. The board responds that the 
first sentence of this section clarifies the insurer's protection in the event 
the debtor misstated his or her age. Concerning subsection (a)(2)(F), comments 
were received that there was a conflict between Insurance Code, Article 21.55 
and this provision and that the provision should include language that 
settlement shall be made not later than two months after due proof of death and 
the right of the claimant to the proceeds. The board responds to these comments 
by noting that Insurance Code, Article 21.55, sec.8 states that it shall be 
liberally construed to promote its underlying purpose of obtaining prompt 
payment of claims and sec.7 of the statute indicates that Insurance Code, 
Article 21.55 is cumulative of other remedies. Effect must, therefore, be given 
to Insurance Code, Article 21. 55 and Insurance Code, Article 3.44 which 
provides for settlement upon receipt of or not later than two months after due 
proof of death and the right of the claimant to the proceeds. Under these rules, 
if the payment can be made earlier than two months, the company is free to do 
so. If on the other hand the provisions of Insurance Code, Article 21.55 would 
allow a longer period of time, these rules make it clear that the time limits of 
Insurance Code, Article 3.44 must be met. With respect to the addition of the 
language "and the right of the claimant to the proceeds," the board agrees that 
this should be inserted and the section will be amended accordingly. Concerning 
subsection (a)(2)(G)(H)(I)(J), various commenters have stated that they perceive 
these sections of the rules to conflict with Insurance Code, Article 21.55. A 
comment was also received that the last sentence of subparagraph (G) could be 
confusing in relation to Insurance Code, Article 21.55. The board believes that 
with the exception of the last sentence of subparagraph (G), the provisions can 
and should be reconciled with Insurance Code, Article 21.55. The last sentence 
of subparagraph (G) will be removed in order to avoid confusion. The word 
"immediately" in subparagraph (J) does appear to cause some confusion in the 
context and that word will be deleted from subparagraph (J). With these minor 
deletions, the board believes that the subparagraphs are in harmony with 
Insurance Code, Articles 21.55, 3.51-6 and 3.70-3 and will provide for prompt 
settlement of claims and should be adopted. Concerning subsection (a)(2)(L), 
comments were received that this provision conflicted with Insurance Code, 
Article 21.55. The board believes that the provisions related to legal action 
may require different harmonization of various statutes and it may cause some 
difficulties. The section is amended for that reason to refer back to the 
applicable statutes. Concerning subsection (b), commenters have suggested that 
this subsection limits their ability to contest claims in an effort to 
invalidate the policy and constitutes an underwriting rule. The board believes 
that this subsection does not limit contestability as it does not deal with that 
issue which is dealt with in other sections of the rules. However, to alleviate 
the insurers concerns, this subsection has been amended to refer to the insurers 
right to contest a claim. Concerning subsection (c), many commenters have 
objected to this subsection for a multitude of reasons because it would disallow 
the issuance of seven day retroactive disability coverage. Comments against this 
provision were made by various lending institutions, a retail merchant, and 
industry representatives. Commenters noted that this coverage is preferred by 
consumers and that the consumers could not have complete protection unless this 
plan were available. One commenter who was in favor of the elimination of this 
plan indicated that in 1989 the seven-day retroactive plan accounted for 70% of 
the premiums. In this commenter's opinion the plan was popular because the 
consumers had no influence over the cost or type of coverage and the real choice 
was made by the lenders rather than the consumer. This commenter pointed out 
that the highest premiums are found in seven-day retroactive plans which is an 
incentive to the insurers and the lenders to advocate such plans as there is 
more premium to finance and more interest to be received. This commenter also 
stated that there was evidence that there were not true benefits to consumers in 
the use of this plan as the loss ratio on this plan was 45% where as on all 
other credit accident and health the loss ratio was 60%. The board believes that 
the elimination of the seven day retroactive plan should remain in these rules. 
The board is of the opinion that because a debtor is not truly given a choice of 
disability coverage his interests are not safeguarded adequately. The board 
believes that a seven day retroactive disability coverage is adverse to the best 
interests of consumers and notes that approximately 24 other states currently do 
not allow such plans. The board believes the elimination of this rule is 
preferable to raising the rates for seven day retroactive plans or mandating 
choice, particularly because the latter mandate in the context of the way in 
which the policies are marketed would not be a viable alternative. 
 sec.3.5111 (a). Commenters objected to furnishing detailed monthly statements 
as the cost for such reporting would be too high. Some commenters noted that 
regulation Z allows for quarterly reporting. Commenters also objected to the 
requirements of paragraph (5) of this subsection relating to notification of any 
rate change at least one billing period prior to the effective date. One 
commenter approved the need for detailed monthly statements, however, noting 
that in the case of credit unions where there is no monthly billing this would 
be impractical and might cause a hardship. The board has changed this section to 
provide that the statement must be furnished each billing cycle but not less 
frequently than quarterly. The board has required in the new rule that the 
notification of any rate change be made at least one billing cycle prior to the 
effective date. However, if the change is mandated by other legal requirements 
which would take effect prior to the date of the next billing cycle, notice 
would be given at least 30 days prior to the effective date of the rate change. 
The board is of the opinion that this information should be provided so that the 
debtor may make an informed decision for continuance in the plan with sufficient 
time to take action prior to the next billing cycle. Concerning subsection (b), 
commenters appear to be confused about this provision. Several commenters 
pointed out that the companies could not be assured that the debtor actually 
attached the notice to the certificate of insurance. The board has changed this 
rule in light of this confusion. The intent of the provision was to require the 
insurer to advise the debtor to attach the notice to the certificate of 
insurance. Concerning subsection (d), comments were received stating that since 
the method for determining the minimum payment varies from creditor to creditor, 
each creditor would have to have a unique policy. The board agreed that it would 
be an unnecessary burden and deleted subsection (d). 
 sec.3.5201(a). Comments were received that it was unnecessary to have a unique 
designation of form number for open-end and closed-end transactions. The 
commenters noted that this would create additional cost, particularly in the 
case of monthly premium business. The board believes that it is necessary to 
have a clear cut separation of these transactions because of the differences 
between the two unique products. 
 sec.3.5202 (a). Comments were received opposing any increase in the loss ratio. 
Those commenting on this topic stated that the premium rates were already very 
low and that this change would make the coverage unprofitable. Other commenters 
suggested changes to this subsection. One suggestion was to reduce the target 
loss ratio. The other was to modify the language concerning reasonability to 
include all the items the board shall consider in determining the presumptive 
premium rates under the amended language of Article 3.53, sec.8A(3). The board 
notes that the proposed rule does not address any changes in the loss ratio and 
does not address the target loss ratio issue. These issues may be addressed 
during the rate hearing. The current language regarding the basic test of 
reasonableness is appropriate and is essential for the approval of rate 
deviations and the approval of rates for coverages that do have presumptive 
rates established. Concerning subsection (b), many comments were received 
opposing the repeal of this subsection. Some commenters wish to have the minimum 
premium raised. The commenters objected to the deletion of a minimum total 
premium of $5.00 on the grounds that the cost involved was for acquisition and 
processing. Some commenters stated that the deletion would drive up the 
presumptive rates. Some commenters tried to draw an analogy between the premium 
refunds addressed in Article 3.53 and the minimum premium. Those commenters 
suggested that the fact that the statute provided that refunds need not be made 
if the amount of the refund is less than $5.00 established that the legislature 
recognized a minimum premium concept. The commenters also suggested that there 
was a bona fide need for coverage on these lower dollar or very short term loans 
and that the benefit of having coverage far outweigh the minimum premium. Some 
commenters stated that if the $5.00 minimum was deleted, carriers would not 
provide coverage for small loan amounts and durations. One commenter was 
strongly in favor of the elimination of the minimum premium because it will 
bring the cost of small policies down to a reasonable return on the consumer's 
dollar. The board does not believe that a legislative provision relating to 
refunds establishes any legislative intent with respect to minimum premiums. The 
board further notes that the establishment of the $5.00 minimum premium results 
in premium charges which can be up to 30 times greater or more than the premium 
which would be charged using the presumptive rates. When viewed in light of the 
benefit provided in relation to the premium charge, the minimum premium is not 
reasonable despite the statements to the contrary. The board points out in those 
circumstances where accident and health coverage can be provided in addition to 
life coverage, in almost all situations, the $5.00 minimum premium would be 
exceeded. 
 sec.3.5203. Many comments were received indicating that the commenters were not 
in favor of the proposed changes to the method of calculating unearned premium 
reserves. Commenters also opposed the use of the rule of anticipation for 
uniformly decreasing disability insurance. One Commenter was strongly in favor 
of the changes. The board believes that the changes proposed in this section for 
single premium term life coverage are necessary to correspond to the refund of 
unearned premiums as proposed under sec.3.5901 of this title (relating to Refund 
of Unearned Premiums) This change of method was proposed to provide the debtor 
with a just amount of refund. The change proposed for single premium term 
disability coverage is necessary to correspond to the refund of unearned premium 
as proposed under sec.3.5901 of this title and was proposed to provide the 
debtor with a just amount of refund. The rule allows companies to use two 
different methods which produce substantially the same result. If commenters do 
not wish to use the rule of anticipation with regard to uniformly decreasing 
disability insurance, they are free to use the other method. Both of the 
proposed methods have been in sec.3.6101 of this title (relating to Policy and 
Claim Reserves) since 1980. 
 sec.3.5302. Comments were received asking the board to consider amending 
subsection (c) of this section so that insurers could offer joint disability 
coverage in this state. The commenter stated that the economic times dictate 
that many households have both spouses working. By offering joint disability 
insurance the debtors would be in a better position to make their required 
payments. There was no proposed rule before the board on joint disability 
insurance. No such proposal had been published in the Texas Register for 
comment. The board further believes that it is unnecessary to at this time to 
allow joint disability coverage. If creditors wish to provide additional 
security, the total indebtedness may be split for each spouse in whatever 
proportion is needed and two individual loans can be written for those amounts. 
Insurance could then be written on a single debtor for each loan. 
 sec.3.5305. Comments were made concerning the inappropriateness of the first 
paragraph of this section because it referred only to the basic test of 
reasonableness. The commenters pointed out that the board is required to 
consider other factors in addition to the loss ratio when establishing 
presumptive rates. The board agrees with this comment and this provision and the 
section lead-in paragraph will be changed accordingly. For the sake of 
consistency and clarification, a corresponding change will be made to the lead 
in paragraph of sec.3.5501 of this title (relating to Standards and Principles 
for the Application of the Rates). Concerning paragraph (1), a commenter 
addressed the subject of allowing carriers to have a pre-existing exclusion for 
credit life insurance. The commenter stated that such an exclusion was necessary 
for insurance sold on open-end indebtedness to eliminate anti-selection. The 
commenter also wanted the board to consider the same type of pre-existing life 
exclusion for all other types of credit life insurance. The board believes that 
the concerns of the commenter with respect to open-end coverage can be met by 
proper underwriting and by a filing for a rate deviation if deemed necessary. 
The board does not believe that considering pre-existing life exclusions for all 
other types of credit life coverage is beneficial as such exclusion would only 
serve to increase the denial of credit life claims. Every carrier can underwrite 
the debtor before issuing the coverage if they deem it necessary. The possible 
anti-selection concern involved on open-end coverage, because of the ability of 
the debtor to increase the coverage due to future advances, is not a concern in 
the other types of credit life coverage. Concerning paragraph (2), a commenter 
stated that this provision would eliminate certain people from eligibility for 
coverage because of what the commenter believed was a non-flexible age 
requirement. The board is of the opinion that the age requirements set forth are 
merely minimum standards. Companies may elect to cover people beyond these age 
limits. The language parallels the current age limitations set forth in the 
credit accident and health age limits of sec.3.5501 of this title. The language 
of this rule was chosen to avoid confusion where the policy has an eligibility 
age limitation and offers both credit life and credit disability. 
 sec.3.5501. As noted previously the lead-in paragraph of this section is being 
amended to be consistent with the changes made in response to comments discussed 
with reference to the comments to sec.3.5305 of this title (relating to 
Conditions of Life Insurance Benefits). Concerning paragraph (3)(C), a commenter 
recommended that this provision be changed to make the age restriction for 
debtors on credit accident and health insurance coincide with the provisions for 
age eligibility under credit life provisions found in sec.3. 5305 (2) of this 
title. The current language in the credit life section causes confusion and is 
inconsistent with the age limits for credit accident and health in the current 
rule. Changes have been made to that provision to avoid the confusion and 
following that change this section's language will be consistent with the 
language of that section. Concerning subsection (3)(E), a commenter stated that 
it was unnecessary to have a specific definition for total disability and to 
tune the definition to specific circumstances in the market. The board believes 
that the change to this section provides clarification and helps to eliminate 
potential abuse on denial of coverage for total disability. This change is in 
line with the NAIC Model regulation and provides additional protection from 
possible wrongful denial of claims. 
 sec.3.5601. Two commenters stated that if loss ratio standards set forth in 
sec.3.5202(a) are deleted this provision would need to be amended and suggested 
that an interim solution would be to amend the language to refer to the loss 
ratios established in the most recent board order for presumptive rates. A 
commenter also mentioned that the board is obliged to consider factors in 
addition to basic loss ratios in establishing presumptive rates. The board notes 
that at this time no proposal has been made to amend sec.3.5202(a) of this title 
(relating to Reasonable Relation of Benefits to Premiums). There is no 
necessity, therefore, to consider this suggestion at this time. The board also 
notes that target loss ratios are used as the basic test for reasonableness, 
however, the additional factors that the board uses in determining presumptive 
rates do not need to be considered an approval of a deviated rate because the 
expense components and other similar items are already included in the margin 
between the actual loss ratio and the target loss ratio. sec.3.5607. A comment 
was received contending that upward deviated multiple account cases must follow 
the accounts so that all insurance companies are bound by the same rate. 
Additionally, the commenter stated that the insurer has no way to know whether 
the creditor has an upward deviated rate as part of the multiple account case. 
The board knows that any insurer taking over an account can check with the Texas 
Department of Insurance and confirm whether or not the account currently has a 
deviated rate in effect. Since multiple account cases are granted with the total 
experience of all the individual accounts, it is not easily determined whether 
an insurer taking over one of those accounts should be allowed to continue 
charging the rate that was approved for the multiple account case. For this 
reason no change is being made in this section. sec.3.5702. This section 
concerns the instructions for preparing forms and the comments and response 
relating to this section also relates to the forms. Those forms which were 
changed as a result of the comments are being refiled with the office of the 
Secretary of State. Persons wishing to obtain copies of the forms may obtain 
them from the Texas Department of Insurance, Publications Department, Mail Code 
108-5A, P.O. Box 149104, Austin, Texas 78714-9104. A wide range of comments were 
received concerning what items should or should not be captured in the annual 
credit call. Some commenters believe the call experience should not be captured 
separately for the two categories of loan duration which are 1 month through 60 
months and 61 months through 120 months. Some commenters do not believe the 
expense component can be accurately reported specifically by plan, class, 
duration, and be limited to the Texas experience. One commenter stated that the 
call report should capture each and every element that is contained in recently 
enacted Insurance Code, Article 3. 53, sec.8, which provides for the board to 
consider a large number of items in determining presumptive rates. Other 
commenters do not want all of the information in the proposed rule captured. 
They specifically do not want administrative expense captured because they have 
no way to capture these specific Texas experience components by plan, duration 
of loan and class of business. Reconciliation Form CI-R-L. A comment was 
received which related to the reference on this reconciliation form to a 
specific line in the annual statement for earned premiums. The commenter noted 
that this section was confusing. The board responds that the following changes 
have been made to the proposed credit call forms and definitions. All references 
to administrative expense have been removed. On Form CI-R-L, the column entitled 
Earned Premiums has been filled in with the phrase "N/A." In view of the 
comments concerning other changes which may need to be made to future calls, the 
board has requested staff to come forward with additional changes at a future 
date. The board may then take action to publish such additional changes for 
comment, if the board chooses to do so pursuant to its usual and customary 
procedures. 
 sec.3.5901. A number of comments were received in connection with this section. 
Most commenters did not favor adopting changes to this section because they 
believe that the refund would reduce their earned premiums substantially. One 
commenter was in favor of the proposed language and stated that it provided for 
a just refund. Many commenters wanted to continue using the rule of 78 for gross 
pay reducing term credit life. Some commenters stated that their systems were 
not sophisticated enough to use the rule of anticipation. The board believes 
that the changes in this rule are necessary because the prior rules did not 
provide appropriate premium refunds for net pay decreasing term credit life 
coverage, truncated life coverage and credit disability coverage. The rule of 78 
assumes that premiums are earned quicker than the above coverages actually 
provide; therefore, appropriate consumer protections are not provided. The rule 
of anticipation is an appropriate and acceptable technique to refund for all 
single premium coverages. The rule of anticipation computes the refund to be the 
single premium for the remaining term and benefits of contract. Additionally, 
the refund methods cited do not preclude companies from submitting refund 
methods which would produce amounts in excess of the rule of anticipation 
refund. In other words, full term gross pay reducing term credit life can be 
appropriately refunded using the rule of 78. The board believes that the 
companies' systems will be sophisticated enough to produce a refund based on the 
rule of anticipation. The board believes that all sections referring to the 
methods used to compute unearned premium reserves should be consistent. Changes 
have been made to this section to assure that sec.3.5203 of this title (relating 
to Earned Premiums), sec.3. 5901 of this title (relating to Refund of Unearned 
Premiums) and sec.3.6101 of this title (relating to Policy Reserves) are in 
harmony. 
 sec.3.5906. Numerous comments were received stating that the commenters would 
like to have some options to refund on partial months in ways other than the 
method set forth in the proposal. The board believes that the method set forth 
will produce fair and reasonable refunds when a partial month is involved. The 
other methods proposed by commenters create some major concerns. The rule to be 
adopted gives appropriate protections for consumers when coverage is ended at 
any time other than at the end of the month. The board will, however, monitor 
this situation and if it creates difficulties will re-examine other ways in 
which these refunds could be handled. 
 sec.3.6101. Many comments were received concerning this section which expressed 
concern that increased reserves were being mandated. Other commenters stated 
that reserves for credit accident and health should be required to be based on 
the rule of anticipation. This rule apparently caused confusion because the 
commenters did not realize that the percentage adjustment was offset by the 
Mortality Table switch. In order to alleviate these concerns the rule has been 
changed to return to the prior language but add an additional option allowing 
companies the right to reserve using 150% of the 1980 Commissioners Standard 
Ordinary Mortality Table with interest not to exceed 5.5%. The current rules 
provide for companies to reserve their accident and health business using the 
rule of anticipation but allows companies to optionally elect to use the mean of 
the rule of 78 and pro-rata method. The board believes that these two methods 
produce substantially the same reserve protections. 
 The Office of Public Insurance Counsel commented in favor of the adoptions to 
these rules. 
 The Texas Legal Reserve Officials Association Texas Bankers Association Texas 
Credit Union League Credit Insurance Association of Texas, Inc. Consumer Credit 
Insurance Association one credit union one retail merchant eleven insurers and 
agents eight banks commented against the adoption. 
  
  28 TAC sec.3.5001 
 
  The amendment is adopted under the Insurance Code, Article 3.53, sec.12, which 
allows the Texas Department of Insurance to issue such rules and regulations as 
it deems appropriate for the regulation of credit life insurance and credit 
accident and health insurance. Further authorization is found in Insurance Code, 
Article 1.04, which provides the State Board of Insurance with the authority to 
determine policy and rules in accordance with the laws of this state, and Texas 
Civil Statutes, Article 6252-13a, sec.4 and sec.5, which authorize and require 
each state administrative agency to adopt rules of practice setting forth the 
nature and requirements of available procedures and prescribe the procedure for 
the adoption of rules by any state administrative agency. 
  
  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 June 9, 1992. 
 TRD-9207909 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  Applications and Policies 
 
  sec.sec.3.5102-3.5106, 3. 5110, 3.5111 
 
  The amendments and new sections are adopted under the Insurance Code, Article 
3.53, sec.12, which allows the Texas Department of Insurance to issue such rules 
and regulations as it deems appropriate for the regulation of credit life 
insurance and credit accident and health insurance. Further authorization is 
found in Insurance Code, Article 1.04, which provides the State Board of 
Insurance with the authority to determine policy and rules in accordance with 
the laws of this state, and Texas Civil Statutes, Article 6252-13a, sec.4 and 
sec.5, which authorize and require each state administrative agency to adopt 
rules of practice setting forth the nature and requirements of available 
procedures and prescribe the procedure for the adoption of rules by any state 
administrative agency. 
 
 
  sec.3.5104. Benefits and Refunds. 
 
  (a) Refunds will be due as follows: 
 
  (1) If an accident and health insurance claim is in progress at the time of 
discharge of the indebtedness, such claim shall continue during the originally 
scheduled term of insurance, as if there had been no such discharge of 
indebtedness. Upon the termination of such continuing claim within the 
originally scheduled term of insurance, a refund shall be made of any then 
unearned premium. If, however, the indebtedness is prepaid by a lump sum 
disability benefit or if the insurer elects, during the pendency of an accident 
and health insurance claim, to prepay and discharge the full remaining balance 
due thereon immediately in one payment, the accident and health premium paid or 
then due and payable to the insurer is earned and no refund is required. 
However, in such instances, the credit life premium is not fully deemed earned 
and shall be refunded in accordance with sec.sec.3.5901-3.6000 of this title 
(relating to Premium Refunds) . 
  
  (2) In the case of termination of credit life insurance for all plans, in 
which death benefits are not payable due to exclusions in the policy, except for 
open-end coverages, the insurer will refund the gross premium paid for credit 
life insurance and the unearned credit accident and health premium in accordance 
with sec.sec.3.5901-3.6000 of this title. For open-end coverages, the insurer 
will refund the total amount of credit life premium charged or collected since 
the date of death along with the unearned credit accident and health premium in 
accordance with sec. sec.3. 5901-3.6000 of this title. . 
  
  (3) In the case of termination of credit life insurance by payment of death 
benefits, the life insurance premiums paid or then due and payable to the 
insurer are deemed earned and no refund thereof is required; however, in such 
instances the credit accident and health insurance premium is not fully deemed 
earned and shall be refunded to the second beneficiary in accordance with 
sec.sec.3.5901-3. 6000 of this title. 
  
  (b)-(d) (No change.) 
 
  
  sec.3.5105. Application Provisions. 
 
  (a) (No change.) 
  
  (b) Every application, enrollment form or notice of proposed insurance, shall 
provide for the signature of the debtor and shall set forth: 
 
  (1) the name and home office mailing address of the insurer, and on notices of 
proposed group insurance, debtor's applications for group insurance or 
enrollment forms for group insurance, an identification of the master policy; 
  
  (2)-(5)  (No change.) 
  
  (6) a brief description of the coverage applied for; and 
  
  (7) a statement that upon acceptance of the insurance by the insurer and not 
later than 45 days after the date upon which the indebtedness is incurred (or, 
if the indebtedness is an open-end transaction, not later than 30 days from the 
date of application for coverage) the insurer shall cause the individual policy 
or the group certificate of insurance to be delivered to the debtor, and that if 
the insurance is not accepted by the insurer or by a substituted insurer as 
authorized by Insurance Code, Article 3. 53, sec. 6E, then any insurance charge 
made for such insurance shall be fully refunded and the creditor shall 
immediately give written notice to such debtor and shall promptly make an 
appropriate credit to the debtor's account in accordance with Insurance Code, 
Article 3.53, sec.8C. 
  
  (c) (No change.) 
  
  (d) The application, enrollment form, or notice of proposed insurance shall 
not contain language which requires the debtor to attest or acknowledge that 
he/she is eligible or ineligible for the insurance coverage. 
  
  (e) If eligibility conditions of employment and/or good health are required, 
the debtor's application shall contain a space for the debtor's and/or joint 
debtor's signatures whereby they can attest to those specific conditions of 
eligibility. 
 
  
  sec.3.5106. Prohibited Provisions and Practices. 
 
  (a)  The policy or certificate of insurance shall not contain provisions which 
would encourage misrepresentation or are unjust, unfair, inequitable, 
misleading, deceptive or contrary to law or to the public policy of this state. 
A policy, certificate of insurance, notice of proposed insurance, application 
for insurance, endorsement and rider filed with the commissioner shall be 
presumed to be unjust, unfair, inequitable, misleading, deceptive, or to 
encourage misrepresentation unless: 
 
  (1) printed material is in 10 point type; 
  
  (2) each policy or certificate of insurance contains provisions substantially 
as follows: 
 
  (A) Grace period-A grace period of 31 days shall be granted to the 
policyholder or premium payor for the payment of each premium falling due after 
the first premium. During the grace period, the coverage shall continue in force 
unless the policyholder or premium payor shall have given the insurer written 
notice of discontinuance in advance of the date of discontinuance and in 
accordance with the terms of the policy. If the insured shall die during the 
grace period, the overdue premium may be deducted in any settlement made under 
the policy. 
  
  (B) Entire contract-The policy and any application shall constitute the entire 
contract between the parties. (This requirement is an optional provision for 
certificates of insurance.) 
  
  (C) Representations by insureds-In the absence of fraud, all statements made 
by the policyholders or the persons insured shall be deemed representations and 
not warranties. 
  
  (D) Incontestability. 
 
  (i) For individual coverage, the policy shall be incontestable after it has 
been in force during the lifetime of the insured for two years from its date, 
except for nonpayment of premium. No material misstatement made by the applicant 
in the application for the policy shall be used to contest the validity of the 
policy, during the contestable period, unless the misstatement is contained in a 
written statement signed by the applicant, and a copy of the statement is 
furnished to the applicant or to his beneficiary. Companies may elect to provide 
an additional statement to clarify that fraudulent misstatements regarding 
credit disability coverage may be contested without regard to the two year time 
limitation. 
  
  (ii) For group coverage, the validity of the policy shall not be contested by 
the insurer, except for nonpayment of premiums, after it has been in force for 
two years from its date of issue. No statement made by any person insured under 
the policy relating to his insurability shall be used in contesting the validity 
of the insurance with respect to which such statement was made after such 
insurance has been in force prior to the contest for a period of two years 
during such person's lifetime and unless it is contained in a written instrument 
signed by him, a copy of which instrument has been furnished to such person or 
to his beneficiary. Companies may elect to provide an additional statement to 
clarify that fraudulent misstatements regarding credit disability which are made 
by the persons insured under the policy coverage may be contested without regard 
to the two-year time limitation. 
  
  (E)  Misstatement of age-If the age of the debtor has been misstated, and 
according to the correct age the debtor would not have been eligible for 
insurance coverage, the company shall specify the method of adjustment to be 
used. If coverage is inadvertently issued to a debtor who correctly stated his 
age and his age exceeds the eligibility age, the insurer has the right, within 
90 days of the effective date of coverage, to terminate the coverage and refund 
the full charge for insurance, provided such termination is accomplished and the 
appropriate refund is made prior to the incurred date of a claim; otherwise, the 
coverage remains in full force. 
  
  (F) Death benefit claims-When a policy shall become a claim by the death of 
the insured, settlement shall be made upon receipt of or not later than two 
months after receipt of due proof of death and the right of the claimant to the 
proceeds. 
  
  (G) Notice of disability claims-Written notice of a claim must be given to the 
insurer within 20 days after the occurrence or commencement of any loss covered 
by the policy, or as soon as is reasonably possible. 
  
  (H)  Disability claim forms-The insurer will furnish to the person making 
claim, or to the policyholder for delivery to such person, such forms as are 
usually furnished by it for filing proof of loss. If such forms are not 
furnished before the expiration of 15 days after the insurer receives notice of 
any claim under the policy, the person making such claim shall be deemed to have 
complied with the requirements of the policy as to proof of loss upon 
submitting, within the time fixed in the policy for filing proof of loss, 
written proof of the occurrence, character, and extent of the loss for which 
claim is made. 
  
  (I) Proofs of loss (disability) -Written proof of loss must be furnished to 
the insurer within 90 days after the commencement of the period for which the 
insurer is liable. Subsequent written proofs of the continuation of such 
disability must be furnished to the insurer at such intervals as the insurer may 
reasonably require. Failure to furnish proof within such time shall not 
invalidate or reduce any claim if it was not reasonably possible to furnish 
proof within such time, provided proof is furnished as soon as reasonably 
possible; but in no event, except in the absence of legal capacity of the 
claimant, later than one year from the time proof is otherwise required. 
  
  (J) Disability claim payments-Benefits payable under the policy for any loss 
other than loss for which the policy provides any periodic payment will be paid 
upon receipt of due written proof of such loss. Subject to due written proof of 
loss, all accrued benefits payable for loss for which the policy provides 
periodic payment shall be paid (insert period for payment as provided in the 
policy) during the continuance of the period for which the insurer is liable, 
and any balance remaining unpaid at the termination of such period shall be paid 
after receipt of due written proof. 
  
  (K) Physical examinations and autopsy-The insurer, at its own expense, shall 
have the right and opportunity to examine the person of the insured when and as 
often as it may reasonably require during the pendency of a claim hereunder and 
to make an autopsy in case of death where it is not forbidden by law. 
  
  (L) Legal action-Policy provisions related to legal action must comply with 
the statutes applicable to the policy. 
  
  (b)  No provisions in an individual policy or group certificate of insurance 
pertaining to underwriting rules, conditions of eligibility or issuance, or 
maximum amounts or terms of insurance may, except as provided in subsection 
(a)(2)(D) or (E) of this section, be used as the basis for termination or 
reduction of coverage or the denial of claims. 
 
  (1) If the policy or certificate of insurance contains limitations on the 
maximum amount or term of insurance, the form shall state that if coverage is 
issued in excess of those limits, the insurer has the right, within 90 days of 
the effective date of coverage, to reduce the excess coverage and refund the 
charge for the excess insurance, provided such adjustment is accomplished and 
the refund is made prior to the incurred date of a claim; otherwise, the 
coverage remains in force as originally issued. 
  
  (2) A policy or certificate of insurance issued in connection with open-end 
transactions may contain provisions limiting the maximum amount of insurance 
which may become effective thereunder, and may contain provisions for automatic 
termination of coverage upon the attainment of a specific age. 
  
  (c) No credit accident and health insurance policy or certificate may contain 
a provision which allows an elimination period or waiting period of less than 14 
days before disability coverage shall become payable. 
 
  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 June 9, 1992. 
 TRD-9207910 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  Filing and Approval of Forms and Rates 
 
  28 TAC sec.sec.3.5201-3.5203, 3.5205 
 
  The amendments are adopted under the Insurance Code, Article 3.53, sec.12, 
which allows the Texas Department of Insurance to issue such rules and 
regulations as it deems appropriate for the regulation of credit life insurance 
and credit accident and health insurance. Further authorization is found in 
Insurance Code, Article 1.04, which provides the State Board of Insurance with 
the authority to determine policy and rules in accordance with the laws of this 
state, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5, which 
authorize and require each state administrative agency to adopt rules of 
practice setting forth the nature and requirements of available procedures and 
prescribe the procedure for the adoption of rules by any state administrative 
agency. 
 
 
  sec.3.5201. Submission of Form and Rate Filings. 
 
  (a)  Every insurance company, when submitting a schedule of rates for 
consideration by the commissioner of insurance, shall identify the rates to be 
used with the policy form submitted for approval. The face and face page of 
every form or schedule submitted to the commissioner of insurance for 
consideration under Insurance Code, Article 3.53, shall have added to its 
identifying form number the additional identification: "(3.53)" if the form is 
an individual life and/or individual accident and health form and used only 
within the scope of Article 3.53; "(3.53 and 3.50)" if the form is a group life 
and/or group accident and health form and used only within the scope of Article 
3.53; "(3.53 R.A.)" or "(3.53 O.E.)" if the form is a credit life and/or credit 
accident and health form and is written on open-end transactions. The 
designations "(3.53 R.A.)" or "(3.53 O.E.)" may not be used on forms or 
schedules providing insurance coverage on closed-end transactions. The 
additional identification, as required above, will only be used on credit life 
and/or credit accident and health insurance written under the scope of Article 
3.53. 
  
  (b) All form and rate filings are to be filed in accordance with the 
requirements of sec.sec.3.1-3.5 of this title (relating to Scope, General 
Submission Requirements, Specific Additional Submission Requirements, Pending 
Status and Filing Forms). 
 
  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 June 9, 1992. 
 TRD-9207911 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  Presumptively Acceptable Relation of Credit Life Insurance Benefits to 
Premiums 
 
  28 TAC sec.3.5305 
 
  The amendment is adopted under the Insurance Code, Article 3.53, sec.12, which 
allows the Texas Department of Insurance to issue such rules and regulations as 
it deems appropriate for the regulation of credit life insurance and credit 
accident and health insurance. Further authorization is found in Insurance Code, 
Article 1.04, which provides the State Board of Insurance with the authority to 
determine policy and rules in accordance with the laws of this state, and Texas 
Civil Statutes, Article 6252-13a, sec.4 and sec.5, which authorize and require 
each state administrative agency to adopt rules of practice setting forth the 
nature and requirements of available procedures and prescribe the procedure for 
the adoption of rules by any state administrative agency. 
 
 
  sec.3.5305. Conditions of Life Insurance Benefits.  The standards and 
principles for the application of presumptive rates established for credit life 
insurance are as follows. 
 
  (1) The credit life insurance contract may require submission of the debtor's 
written and signed evidence of the debtor's insurability or that the debtor be 
in gainful employment at the time the insurance becomes effective, or both, on a 
form filed with and approved by the commissioner of insurance, and that such 
contract contains no conditions for validity of insurance more restrictive than 
contestability based on material misrepresentation and no exclusions other than 
for suicide, nonscheduled aircraft, and war or military service hazard. Such 
exclusions shall not remain effective after termination of the contestable 
period. Employment or good health may not be a condition precedent to the 
payment of claims unless the insurer required the insured to sign an application 
which stated the applicant was employed and in good health. 
  
  (2) Life insurance coverage is provided or offered to all debtors regardless 
of age; or may contain, at the option of the insurer, age restrictions making 
debtors ineligible for life coverage if they are 65 or over at the time the 
indebtedness is incurred or debtors who will have attained age 66 or over on the 
maturity date of the indebtedness. 
 
  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 June 9, 1992. 
 TRD-9207912 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  Standards of Benefits for Credit Accident and Health Insurance 
 
  28 TAC sec.3.5501 
 
  The amendment is adopted under the Insurance Code, Article 3.53, sec.12, which 
allows the Texas Department of Insurance to issue such rules and regulations as 
it deems appropriate for the regulation of credit life insurance and credit 
accident and health insurance. Further authorization is found in Insurance Code, 
Article 1.04, which provides the State Board of Insurance with the authority to 
determine policy and rules in accordance with the laws of this state, and Texas 
Civil Statutes, Article 6252-13a, sec.4 and sec.5, which authorize and require 
each state administrative agency to adopt rules of practice setting forth the 
nature and requirements of available procedures and prescribe the procedure for 
the adoption of rules by any state administrative agency. 
 
 
  sec.3.5501. Standards and Principles for the Application of the Rates.   The 
standards and principles for the application of presumptive rates established 
for credit accident and health insurance are as follows. 
 
  (1)-(2) (No change.) 
  
  (3) The credit accident and health insurance contract may require written and 
signed evidence of insurability (inclusive of age and gainful employment) and 
where offered, shall be offered to all eligible debtors, and shall contain: 
 
  (A) (No change.) 
  
  (B) no provision for validity of insurance more restrictive than 
contestability based on material misrepresentation and no other provision which 
excludes or restricts liability in the event of disability caused in a specified 
manner except that it may contain provisions excluding or restricting coverage 
in the event of: 
 
  (i) (No change.) 
  
  (ii) normal pregnancy; 
  
  (iii)-(vi) (No change.) 
  
  (C)-(D) (No change.) 
  
  (E) for the purpose of total disability insurance, a definition of "total 
disability" which provides coverage during the first 12 months of such 
disability even though the insured is able to perform an occupation other than 
the one he held at the time such disability occurred. During the first 12 months 
of such disability, the definition of "total disability" must relate such 
disability to the inability to perform the essential and customary duties of the 
occupation of the debtor at the time the disability occurred. After such 
disability continues for more than 12 months, the definition of "total 
disability" may relate such continuing disability to the inability to perform 
any occupation for which the debtor is reasonably fitted by education, training 
or experience. 
 
  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 June 9, 1992. 
 TRD-9207913 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  Deviation Procedures 
 
  28 TAC sec.sec.3.5602-3.5604, 3. 5607, 3.5608, 3.5610 
 
  The amendments are adopted under the Insurance Code, Article 3.53, sec.12, 
which allows the Texas Department of Insurance to issue such rules and 
regulations as it deems appropriate for the regulation of credit life insurance 
and credit accident and health insurance. Further authorization is found in 
Insurance Code, Article 1.04, which provides the State Board of Insurance with 
the authority to determine policy and rules in accordance with the laws of this 
state, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5, which 
authorize and require each state administrative agency to adopt rules of 
practice setting forth the nature and requirements of available procedures and 
prescribe the procedure for the adoption of rules by any state administrative 
agency. 
 
  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 June 9, 1992. 
 TRD-9207914 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  Experience Call 
 
  28 TAC sec.3.5702 
 
  The amendment is adopted under the Insurance Code, Article 3.53, sec.12, which 
allows the Texas Department of Insurance to issue such rules and regulations as 
it deems appropriate for the regulation of credit life insurance and credit 
accident and health insurance. Further authorization is found in Insurance Code, 
Article 1.04, which provides the State Board of Insurance with the authority to 
determine policy and rules in accordance with the laws of this state, and Texas 
Civil Statutes, Article 6252-13a, sec.4 and sec.5, which authorize and require 
each state administrative agency to adopt rules of practice setting forth the 
nature and requirements of available procedures and prescribe the procedure for 
the adoption of rules by any state administrative agency. 
 
 
  sec.3.5702. Instructions for Preparing Forms. 
 
  (a) Identification of forms. These forms are filed with the Office of the 
Secretary of State, Texas Register Section, and incorporated by reference. They 
can be obtained from the Texas Department of Insurance, Publications Department, 
MC 108-5A, P.O. Box 149104, Austin, Texas 78714-9104. 
 
  [graphic] 
  
  (b) Calculations and work papers. Copies of all calculations, work papers and 
other data used in preparing these forms are not to be mailed to the Texas 
Department of Insurance unless requested, but must be maintained at the home 
office of the company and be available for examination by the commissioner of 
insurance. 
  
  (c) Copies of forms. The forms listed in subsection (a) of this section should 
be reproduced as needed so as to provide for separate reports prescribed by 
these sec.sec.3.5701 to 3.5800 of this title (relating to Experience Calls). 
  
  (d) Experience period. 
 
  (1) The experience period will consist of a maximum of three calendar years. 
  
  (2) Data included in this report is to be the direct business of the current 
insurer, only, without adjustment for reinsurance assumed or ceded. The data is 
to be limited to credit life and credit accident and health insurance in force 
or written directly in the State of Texas on loans or other credit transactions 
of 120 months or less duration. 
  
  (e) Inventory forms (CI-I-PR and CI-I-DR). The purpose of these forms is to 
identify all classes, loan durations, and plans of credit insurance on which the 
insurer either wrote any premium or held any unearned premium reserves during 
the year. Check all boxes in which either any premium was written or any 
unearned premium reserves were held during the year. For any boxes checked, 
appropriate forms as listed in subsection (a) of this section must be filed with 
the commissioner. A separate Form CI-I-PR (or CI-I-DR if appropriate) must be 
filled out for each class of business (A,B,C,D,E, or F) and loan duration as 
indicated at the top of Forms CI-I-PR and CI-I-DR. 
  
  (f) Experience forms (CI-EX-L and CI-EX-DIS). The purpose of these forms is to 
provide statewide experience data in order to determine if the benefits provided 
under contracts of credit insurance are reasonable in relation to premiums 
charged in order that the board may discharge its statutory obligations for the 
supervision of credit insurance operations under Insurance Code, Article 3.53. A 
separate Form CI-EX-L or CI-EX-DIS must be filed for each class of business, 
loan duration, and plan of benefits. 
 
  (1) Earned premiums. 
 
  (A) Line 1a Net written premiums. Net premiums to be shown on line 1a are to 
be determined as follows: Gross premium written (before deductions for dividends 
and experience rating credits) less refunds on terminations. 
  
  (B) Line 1d Actual earned premiums. The total of all premiums earned at the 
premium rates actually charged and in force during the experience period. 
  
  (C) Line 1e Earned premiums at presumptive rate. Actual earned premiums 
adjusted (on Form CI-EP-L, CI-EP-DIS-1/60, or CI-EP-DIS-61/120) to the amount 
which would have been earned had the premium rate during the experience period 
been equal to the presumptive rate in effect at the end of the reporting period. 
Note that if premiums in force differ from the presumptive rate in effect at the 
end of the reporting period, line 1d will not equal line 1e. 
  
  (2)  Mean Insurance in force, line 4 Form CI-EX-L. 
 
  (A) Particular care should be exercised to assure sufficiently accurate 
results in determining the amounts of "mean insurance in force." 
  
  (B) The average of the monthly amounts should be calculated and entered as the 
mean insurance in force on line 4. Exclude reinsurance assumed and do not deduct 
any ceded. For joint coverage, the amount of insurance in force shall equal 
twice the death benefit. 
  
  (g) Earned premium forms (CI-EP-L, CI-EP-DIS-1/60, and CI-EP-DIS-61/120). 
 
  (1) The purpose of these forms is to convert actual earned premiums to the 
amount of premiums which would have been earned had all business been written at 
the current presumptive rate. 
  
  (2) Form CI-EP-L is applicable to credit life insurance, Form CI-EP-DIS-1/60 
is applicable to credit disability insurance written in connection with loan 
durations of 1 to 60 months, and Form CI-EP-DIS-61/120 is applicable to credit 
disability insurance written in connection with loan durations of 61 to 120 
months. Note that Forms CI-EP-L, CI-EP-DIS-1/60 and CI-EP-DIS-61/120 should be 
reproduced as needed to correspond to the class of business, loan duration and 
plan of benefits, as shown on the corresponding Form CI-EX-L or CI-EX-DIS . 
 
  (A) General. 
 
  (i) A Form CI-EP-L or either CI-EP-DIS-1/60 or CI-EP-DIS-61/120, as 
applicable, must be completed for each Form CI-EX-L or CI-EX-DIS where the 
presumptive earned premium differs from the actual earned premium. More than one 
form may be required when more than one year's data is presented, due to changes 
in the presumptive rates or other factors. 
  
  (ii) Actual earned premiums are to be converted to presumptive earned premiums 
by the use of a conversion factor which is the ratio of the presumptive premium 
rate to the actual premium rate. This conversion must be performed for each 
premium rate with premiums in force during the experience period. 
  
  (iii) The overall totals presented on Form CI-EP-L, CI-EP-DIS-1/60 or CI-EP-
DIS-61/120 must agree to the appropriate lines on the Form CI-EX-L or CI-EX-DIS 
to which they are attached. 
  
  (iv) Note that Form CI-EP-L, Form CI-EP-DIS-1/60 and Form CI-EP-DIS-61/120 
include actual earned premium at presumptive rate on line A. This data is for 
balancing purposes only, and in no way indicates that Form CI-EP-L, CI-EP-DIS-
1/60 or CI-EP-DIS-61/120 must be completed if actual earned premium is equal to 
presumptive earned premium. 
  
  (B) Form CI-EP-L--credit life insurance. 
 
  (i) Presumptive earned premium (Column 4) is the product of actual earned 
premium (Column 1) times the conversion factor (Column 2/Column 3). 
  
  (ii) See also subparagraph (A)(iii) of this paragraph. 
  
  (C) Forms CI-EP-DIS-1/60 and CI-EP-DIS-61/120--credit disability insurance. 
 
  (i) Since deviated rates generally can be expressed as a percentage of the 
presumptive rates, the conversion factor will tend to be constant for all 
periods. When using Form CI-EP-DIS-1/60, the conversion factor to be utilized is 
the average of three ratios taken between presumptive and actual rates for 12-, 
24-, and 36-month terms. When using Form CI-EP-DIS-61/120 the conversion factor 
to be utilized is the average of three ratios taken between presumptive and 
actual rates for 72-, 84- and 96-month terms. The sum of these ratios, divided 
by three, becomes the conversion factor. 
  
  (ii) Presumptive premium rates are to be presented on Line A, Columns 2-4 of 
Form CI-EP-DIS-1/60 or CI-EP-DIS-61/120, as applicable. All ratios (Line b) are 
to be calculated by dividing Line A by Line a. 
  
  (iii)  These forms should be reproduced as necessary to present the required 
conversion for all premium rates in force during the experience period. 
  
  (iv) See also subparagraph (A) (iii) of this paragraph. 
  
  (h) Reconciliation forms (CI-R-L and CI-R-DIS). 
 
  (1) (No change) 
  
  (2)  Form CI-R-L is applicable to credit life insurance and Form CI-R-DIS is 
applicable to credit disability insurance. 
 
  (A)-(B)  (No change) 
  
  (C) This form should be reproduced as necessary to include all forms CI-EX-L 
or CI-EX-DIS. 
 
  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 June 9, 1992. 
 TRD-9207915 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  Premium Refunds 
 
  28 TAC sec.sec.3.5901-3.5904, 3.5906 
 
  The amendments are adopted under the Insurance Code, Article 3.53, sec.12, 
which allows the Texas Department of Insurance to issue such rules and 
regulations as it deems appropriate for the regulation of credit life insurance 
and credit accident and health insurance. Further authorization is found in 
Insurance Code, Article 1.04, which provides the State Board of Insurance with 
the authority to determine policy and rules in accordance with the laws of this 
state, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5, which 
authorize and require each state administrative agency to adopt rules of 
practice setting forth the nature and requirements of available procedures and 
prescribe the procedure for the adoption of rules by any state administrative 
agency. 
 
 
  sec.3.5901. Refund of Unearned Premiums. With respect to policies issued and 
certificates delivered after the effective date of these sections: 
 
  (1) the refund of an unearned amount paid by or charged to a debtor for credit 
life insurance, or for credit accident and health insurance, on which charges to 
the debtor are payable by other than a single sum must not be less than the pro 
rata gross unearned amount charged; 
  
  (2) the refund of an unearned amount paid by or charged to a debtor for credit 
life insurance, or for credit accident and health insurance, on which the 
insurance charges to the debtor are paid in a single sum must be computed by the 
rule of anticipation, as defined in sec.3. 6101(b) of this title (relating to 
policy reserves), or by another method which produces a substantially equal 
amount and is approved by the commissioner of insurance. This paragraph shall 
not be interpreted to preclude refunds for credit accident and health insurance 
to be computed by the mean of the gross unearned premium calculated by the "sum 
of the digits" (Rule of 78) and the pro rata method. 
 
  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 June 9, 1992. 
 TRD-9207916 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  Policy and Claims Reserves 
 
  28 TAC sec.3.6101 
 
  The amendment is adopted under the Insurance Code, Article 3.53, sec.12, which 
allows the Texas Department of Insurance to issue such rules and regulations as 
it deems appropriate for the regulation of credit life insurance and credit 
accident and health insurance. Further authorization is found in Insurance Code, 
Article 1.04, which provides the State Board of Insurance with the authority to 
determine policy and rules in accordance with the laws of this state, and Texas 
Civil Statutes, Article 6252-13a, sec.4 and sec.5, which authorize and require 
each state administrative agency to adopt rules of practice setting forth the 
nature and requirements of available procedures and prescribe the procedure for 
the adoption of rules by any state administrative agency. 
 
 
  sec.3.6101. Policy Reserves. 
 
  (a) Except as provided in sec.3.6102 of this title (relating to Claims 
Reserves), the minimum reserves for premium refunds required by these rules and 
the payment of benefits under outstanding credit life insurance policies and 
certificates may not be less in the aggregate than 130% of the reserves computed 
on the 1958 CSO Mortality Table with interest not to exceed 5.5%; or, at the 
option of the company, such reserves may be maintained at 100% of the reserves 
computed on the 1941 CSO Mortality Table or the 1958 CET Mortality Table with 
interest not to exceed 5. 5%; or 150% of the 1980 CSO Mortality Table with 
interest not to exceed 5.5%. 
  
  (b) The reserve for credit accident and health insurance or disability 
insurance which has an effective date after December 31, 1980, may not be less 
than the product rounded to the next higher dollar of the gross presumptive 
single premium rate per $100 of insured indebtedness for the term of the 
indebtedness remaining as of the valuation date times the number of hundreds of 
dollars of indebtedness outstanding as of the valuation date (herein called the 
Rule of Anticipation) or, as an alternative and at the option of the insurer, 
the mean of the gross unearned premium calculated by the "sum of the digits" 
(Rule of 78) and the pro rata methods. The reserve for such insurance which has 
an effective date prior to January 1, 1981, may not be less than the gross 
unearned premium calculated by the sum of the digits (Rule of 78) method. 
 
  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 June 9, 1992. 
 TRD-9207917 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  Effective Date, Savings Clause, and Severability Clause 
 
  28 TAC sec.3.6402 
 
  The amendment is adopted under the Insurance Code, Article 3.53, sec.12, which 
allows the Texas Department of Insurance to issue such rules and regulations as 
it deems appropriate for the regulation of credit life insurance and credit 
accident and health insurance. Further authorization is found in Insurance Code, 
Article 1.04, which provides the State Board of Insurance with the authority to 
determine policy and rules in accordance with the laws of this state, and Texas 
Civil Statutes, Article 6252-13a, sec.4 and sec.5, which authorize and require 
each state administrative agency to adopt rules of practice setting forth the 
nature and requirements of available procedures and prescribe the procedure for 
the adoption of rules by any state administrative agency. 
 
  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 June 9, 1992. 
 TRD-9207918 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
  Effective date: June 30, 1992 
 Proposal publication date: March 20, 1992 
 For further information, please call: (512) 463-6327 
         
  
  TITLE 31. NATURAL RESOURCE AND CONSERVATION 
 Part II. Texas Parks and Wildlife Department 
  Chapter 65. Wildlife 
  
  Subchapter H. Type I Wildlife Management Areas, Hunting and Fishing 
 
  31 TAC sec.sec.65.190-65.194 
 
  The Texas Parks and Wildlife Commission in a regularly scheduled public 
hearing held May 21, 1992, adopted amendments to sec. sec.65.190-65.194, 
concerning the Type I Wildlife Management Areas Hunting and Fishing 
Proclamation. Section 65.193 and sec.65.194 are adopted with changes to the 
proposed text as published in the April 17, 1992 issue of the Texas Register  
(17 TexReg 2695). Sections 65.190-65.192 are adopted without changes and will 
not be republished. 
 Section 65.193(1)(27)(A)-(L) and sec.65.194(b) were amended in response to a 
request from the licensing agency (United States Army Corps of Engineers) to 
delete the proposed requirement for an annual public hunting permit on the Pat 
Mayse Wildlife Management Area. 
 Section 65.194(f) was deleted to remove a proposed application fee as it was 
determined that such would constitute a lottery for which the Department did not 
possess the required statutory authority. 
 The rules as adopted provide for sound management of wildlife resources and 
permit additional public hunting opportunity based upon scientific studies and 
investigations. 
 The amendments as adopted were necessary to add new areas, provide new 
definitions, clarify rules, restrict certain activities determined to be 
destructive to natural resources, promote participation in public hunts by youth 
and the disabled, improve cost effectiveness, and provide additional public 
hunting opportunity. 
 The adopted rules provide for harvest of wildlife resources consistent with 
recognized wildlife management tenets. 
 Comments by the public concerning the amendments as proposed were presented to 
the Texas Parks and Wildlife Commission in its May 21, 1992, public hearing. 
Comments in the form of correspondence and telephone calls were received from 
three individuals voicing opposition to the proposed prohibition of operation of 
an all terrain vehicle (ATV) on a wildlife management area, except by a person 
certified as being disabled. 
 The Texas Parks and Wildlife Commission disagreed with the comments because 
they were judged not to be compatible with wildlife resource management. 
Unauthorized off-road activity by all terrain vehicles has been documented as a 
significant contributing factor to the creation of unwanted new trails and roads 
with resulting damage to habitat, harassment of wildlife populations, and 
disturbance of other public users. The proposed prohibition of the operation of 
all terrain vehicles on wildlife management areas, except by the disabled, will 
serve to better preserve natural resources for the use and enjoyment by all 
public users. 
 The amendments are adopted under the Texas Parks and Wildlife Code, Chapter 81, 
Subchapter E, which provides the Texas Parks and Wildlife Commission with 
authority to regulate seasons, numbers, means, methods, and conditions for 
taking wildlife resources on wildlife management areas; with respect to 
designated state parks, the commission is acting under the authority of the 
Texas Parks and Wildlife Code, Chapter 62, Subchapter D, which provides 
authority as sound biological management practices warrant to prescribe seasons, 
number, size, kind, and sex and the means and method of taking any wildlife. 
 
 
  sec.65.193. Open Seasons, Bag and Possession Limits, and Means and Methods; 
General Rules. 
 
  (a)-(e) (No change.) 
  
  (f) The executive director may close to public use an area or a portion of an 
area to protect sensitive sites, or may restrict bag limits, cancel hunts, or 
close the season on specific species in certain areas to avoid depletion of 
wildlife resources. 
  
  (g) The executive director may permit recreational activities on wildlife 
management areas which are compatible with sound resource management practices 
and public health and safety. 
  
  (h) Open seasons, shooting hours, means and methods, and bag and possession 
limits for taking deer, javelina, pronghorn antelope, desert bighorn sheep, 
squirrel, turkey, and quail and fishing are as provided by the Statewide Hunting 
and Fishing Proclamation, except as otherwise specified for a specific area. 
  
  (i) Open seasons, shooting hours, means, methods, special requirements, and 
bag and possession limits for taking mourning dove, white-winged dove, rail, 
gallinule, and teal duck during the early teal season are as provided by the 
Early Season Migratory Game Bird Proclamation, except as further restricted for 
a specific area. 
  
  (j) Open seasons, shooting hours, means, methods, special requirements, and 
bag and possession limits for taking waterfowl (outside of the early teal 
season), sandhill crane, woodcock, and snipe are as provided by the Late Season 
Migratory Game Bird Proclamation, except as further restricted for a specific 
area. 
  
  (k) Open seasons, means and methods, and bag and possession limits for taking 
furbearing animals are as provided by the Statewide Furbearing Animal and 
Trapping Proclamation, except as otherwise specified for a specific area. 
  
  (l) Open seasons, bag and possession limits, means and methods, and special 
regulations for certain areas. 
 
  (1) Alazan Bayou Wildlife Management Area: 
 
  (A)  squirrel-by annual public hunting permit; 
  
  (B) quail-by annual public hunting permit; 
  
  (C) mourning doves-by annual public hunting permit; 
  
  (D) waterfowl-by annual public hunting permit. 
  
  (E)  rabbits and hares-to correspond with dates and shooting hours designated 
for squirrel, quail, mourning dove, or waterfowl hunts; no bag or possession 
limits; by annual public hunting permit; 
  
  (F) Special regulations-It is an offense to possess a rifle of greater size 
than .22 caliber rimfire while hunting during the season designated for 
squirrel. 
  
  (2) Atkinson Island Wildlife Management Area-Special regulations. 
 
  (A)-(B) (No change.) 
  
  (C) It is an offense for a person to allow a dog, cat, or any animal to enter 
the area unleashed and not under the person's physical control. 
  
  (3) Black Gap Wildlife Management Area: 
 
  (A) deer: 
 
  (i) archery-on designated days during the period from September 1-January 31; 
one deer (buck only); by annual public hunting permit; 
  
  (ii)  general-during the period from October 1-February 15; one deer as 
specified on the permit; by special permit; 
  
  (B) javelina: 
 
  (i)  archery-to correspond with dates designated for archery only deer hunts; 
one javelina (either-sex); by annual public hunting permit; 
  
  (ii)  general-during the period from September 1-March 31; one javelina 
(either-sex); by special permit; 
  
  (C) quail-on designated days; by annual public hunting permit; 
  
  (D) mourning dove-on designated days; by annual public hunting permit; 
  
  (E) rabbits and hares-to correspond with hunt dates and shooting hours 
designated for quail and mourning dove; no bag or possession limit; by annual 
public hunting permit; 
  
  (F)  fishing-impoundments are closed to fishing. Fishing is permitted in the 
Rio Grande River year-round, except on days when hunts are being conducted by 
special permit; annual public hunting permit required, except fishermen who 
enter and exit the area by boat are not required to possess an annual public 
hunting permit. Fishermen are required to use Maravillas Canyon and Horse Canyon 
roads only while going to and from the Rio Grande River. From the point where 
the Maravillas Canyon Road enters the Rio Grande Valley downstream to the area 
boundary, a fisherman who does not possess an annual public hunting permit 
commits an offense if the fisherman does not stay within the area between the 
road and the river or within 300 yards of the river from the aforementioned 
point upstream to the area boundary; 
  
  (G) special regulations-it is an offense if a public user fails to perform on-
site registration at the area headquarters, except fishermen who enter and exit 
the area by boat are not required to perform on-site registration. 
  
  (4)  Candy Abshier Wildlife Management Area-special regulations. 
 
  (A)-(C)  (No change.) 
  
  (D) It is an offense for a person to allow a dog, cat, or any animal to enter 
the area unleashed and not under the person's physical control. 
  
  (5) Cedar Creek Islands Wildlife Management Area (Big Island, Bird Island, and 
Telfair Island Units)-special regulations. 
 
  (A)-(C) (No change.) 
  
  (D) It is an offense for a person to allow a dog, cat, or any animal to enter 
the area unleashed and not under the person's physical control. 
  
  (6) Chaparral Wildlife Management Area: 
 
  (A)-(B) (No change.) 
  
  (C) quail-on designated days during the period from October-February; by 
regular permit. 
  
  (D) mourning dove-on designated days by regular permit; 
  
  (E)-(G) (No change.) 
  
  (7)  Dam B Wildlife Management Area: 
 
  (A) deer and exotic mammals: 
 
  (i) archery-one deer or exotic mammal (either-sex); by annual public hunting 
permit; 
  
  (ii) general-one deer or exotic mammal (buck only); by annual public hunting 
permit; 
  
  (B) squirrel-by annual public hunting permit; 
  
  (C) quail-by annual public hunting permit; 
  
  (D) mourning doves-by annual public hunting permit; 
  
  (E)  waterfowl-by annual public hunting permit; 
  
  (F) woodcock-by annual public hunting permit; 
  
  (G) king and clapper rail-by annual public hunting permit; 
  
  (H) sora and virginia rails-by annual public hunting permit; 
  
  (I) gallinules-by annual public hunting permit; 
  
  (J)  snipe-by annual public hunting permit; 
  
  (K) rabbits and hares-no closed season; no bag or possession limits; by annual 
public hunting permit; 
  
  (L) furbearing animals-during the period from September 1-March 31; by annual 
public hunting permit; 
  
  (M) feral hog: 
 
  (i)  archery-to correspond with the archery only season for taking deer and 
exotic mammals; no bag or possession limits; by annual public hunting permit; 
  
  (ii) general-to correspond with the general season for taking deer and exotic 
mammals; no bag or possession limits; by annual public hunting permit; 
  
  (N) coyotes-during the period from September 1-March 31; no bag or possession 
limit; by annual public hunting permit; 
  
  (O) special regulations. 
 
  (i)-(ii) (No change.) 
  
  (iii) It is an offense to use any device other than shotguns with nontoxic 
shot or no larger than size #4 lead shot or bow and arrow for hunting, except 
that rifles (including muzzleloaders) or shotguns with rifled slugs are the only 
legal firearms for taking deer, exotic mammals, or feral hogs during the general 
season prescribed for deer and exotic mammals (Non-toxic shot requirements for 
hunting waterfowl remain in effect). 
  
  (iv) Dogs may be used in hunting coyotes and furbearers. 
  
  (v) Exemption from the daylight restriction for open seasons is provided for 
hunting coyotes and furbearers. 
  
  (8) Designated units of the Las Palomas Wildlife Management Area: 
 
  (A) chachalaca-on designated days by annual public hunting permit; 
  
  (B) mourning dove-on designated days by annual public hunting permit; 
  
  (C) white-winged and white-tipped dove-on designated days by regular permit, 
except on the Ocotillo Unit where an annual public hunting permit is required; 
  
  (D)-(E) (No change.) 
  
  (9) Designated Units of the state park system: 
 
  (A)-(C) (No change.) 
  
  (D) squirrel-on designated days by regular permit. 
  
  (E) (No change.) 
  
  (F)  quail-on designated days during the period from October-February; by 
regular permit. 
  
  (G) mourning dove-on designated days by regular permit; 
  
  (H) white-winged and white-tipped dove-on designated days by regular permit; 
  
  (I) waterfowl-on designated days shooting hours end at noon; by regular 
permit; 
  
  (J)-(L) (No change.) 
  
  (10)  Elephant Mountain Wildlife Management Area: 
 
  (A) deer: 
 
  (i)  archery-during the period from September 1-January 31; one deer (buck 
only); by special permit; 
  
  (ii) general-during the period from October 1-February 15; one deer as 
specified on the permit; by special permit; 
  
  (B) javelina: 
 
  (i) archery-to correspond with dates designated for archery only deer hunts; 
one javelina (either-sex); by special permit. 
  
  (ii) (No change.) 
  
  (C)-(D) (No change.) 
  
  (E)  quail-on designated days during the period from October-February; by 
annual public hunting permit; 
  
  (F) mourning dove-on designated days by annual public hunting permit; 
  
  (G) rabbits and hares-to correspond with hunt dates and shooting hours 
designated for quail and mourning dove; no bag or possession limit; by annual 
public hunting permit; 
  
  (H) (No change.) 
  
  (11) Gene Howe Wildlife Management Area: 
 
  (A) deer and exotic mammals: 
 
  (i) archery-on designated days during the period from September 1-January 31; 
one deer or exotic mammal (either-sex); by annual public hunting permit; 
  
  (ii) (No change.) 
  
  (B) (No change.) 
  
  (C) quail-on designated days during the period from October-February; by 
annual public hunting permit; 
  
  (D) mourning dove-on designated days by annual public hunting permit; 
  
  (E) rabbits and hares-to correspond with hunt dates and shooting hours 
designated for quail and mourning dove; no bag or possession limit; by annual 
public hunting permit; 
  
  (F) feral hog: archery-to correspond with the archery only season for deer and 
exotic mammals; no bag or possession limit; by annual public hunting permit; 
  
  (G) fishing-season closed on days when hunts are conducted by special permit; 
annual public hunting permit required; 
  
  (H) special regulations-it is an offense if a public user fails to perform on-
site registration. 
  
  (12) Granger Wildlife Management Area: 
 
  (A) squirrel-by annual public hunting permit; 
  
  (B) quail-by annual public hunting permit; 
  
  (C) mourning doves-by annual public hunting permit; 
  
  (D) waterfowl-by annual public hunting permit; 
  
  (E) woodcock-by annual public hunting permit; 
  
  (F)  gallinules-by annual public hunting permit; 
  
  (G) snipe-by annual public hunting permit. 
  
  (H) rabbits and hares-no closed season; no bag or possession limits; by annual 
public hunting permit; 
  
  (I) furbearing animals-during the period from September 1-March 31; by annual 
public hunting permit; 
  
  (J) coyotes-during the period from September 1-March 31; no bag or possession 
limit; by annual public hunting permit; 
  
  (K) special regulations. 
 
  (i) (No change.) 
  
  (ii) It is a violation to use any type of device other than a shotgun with 
nontoxic shot or no larger than size #4 lead shot or bow and arrow for hunting 
(Nontoxic shot requirements for hunting waterfowl remain in effect). 
  
  (iii)-(iv)  (No change.) 
  
  (13) Guadalupe Delta Wildlife Management Area: 
 
  (A) waterfowl-on designated days; shooting hours end at noon; by regular 
permit; 
  
  (B) king and clapper rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by regular permit; 
  
  (C) sora and Virginia rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by regular permit; 
  
  (D) gallinules-on dates and shooting hours which correspond to those 
designated for waterfowl hunts; by regular permit; 
  
  (E) snipe-on dates and shooting hours which correspond to those designated for 
waterfowl hunts; by regular permit; 
  
  (F) alligator-during the month of September; one alligator as specified on the 
permit; means and methods as specified on the permit or attachments; by special 
permit. 
  
  (14) Gus Engeling Wildlife Management Area: 
 
  (A) deer and exotic mammals: 
 
  (i)  archery-on designated days during the period from September 1-January 31; 
one deer or exotic mammal (either-sex); by annual public hunting permit; 
  
  (ii) (No change.) 
  
  (B) squirrel-on designated days; by annual public hunting permit; 
  
  (C) (No change.) 
  
  (D)  waterfowl-on designated days; shooting hours end at noon; by regular 
permit; 
  
  (E) woodcock-on dates and shooting hours which correspond with those 
designated for waterfowl hunts; by regular permit; 
  
  (F)  gallinules-on dates and shooting hours which correspond to those 
designated for waterfowl hunts; by regular permit; 
  
  (G) snipe-on dates and shooting hours which correspond to those designated for 
waterfowl hunts; by regular permit; 
  
  (H) rabbits and Hares-to correspond with dates and shooting hours designated 
for squirrel hunts; no bag or possession limits; by annual public hunting 
permit; 
  
  (I) feral hog: 
 
  (i)  archery-to correspond with dates designated for archery only deer and 
exotic mammal hunts; no bag or possession limits; by annual public hunting 
permit; 
  
  (ii) (No change.) 
  
  (J) fishing-season is closed on dates designated for hunts by special or 
regular permit; by annual public hunting permit; 
  
  (K) special regulations. 
 
  (i) It is an offense if a public user fails to perform on-site registration. 
  
  (ii)  It is an offense to possess a rifle of greater size than .22 caliber 
rimfire while hunting during the season designated for squirrel. 
  
  (15)  James Daughtrey Wildlife Management Area: 
 
  (A)-(C) (No change.) 
  
  (D) quail-on designated days during the period from October-February; by 
annual public hunting permit; 
  
  (E) mourning dove-on designated days by annual public hunting permit; 
  
  (F) waterfowl-by annual public hunting permit; 
  
  (G) sandhill crane-by annual public hunting permit; 
  
  (H) snipe-by annual public hunting permit; 
  
  (I) rabbits and hares-to correspond with hunt dates and shooting hours 
designated for quail and mourning dove; no bag or possession limit; by annual 
public hunting permit; 
  
  (J)-(K) (No change.) 
  
  (16) J. D. Murphree Wildlife Management Area: 
 
  (A) waterfowl-on designated days; shooting hours end at noon; by regular 
permit; 
  
  (B) king and clapper rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by regular permit; 
  
  (C) sora and Virginia rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by regular permit; 
  
  (D) gallinules-on dates and shooting hours which correspond to those 
designated for waterfowl hunts; by regular permit; 
  
  (E)  snipe-on dates and shooting hours which correspond to those designated 
for waterfowl hunts; by regular permit; 
  
  (F) fishing-no permit required. 
 
  (i)-(viii) (No change.) 
  
  (G)-(H) (No change.) 
  
  (17) Keechi Creek Wildlife Management Area: 
 
  (A) deer and exotic mammals: 
 
  (i) archery-during the period from September 1-January 31; one deer or exotic 
mammal (either-sex); by special permit; 
  
  (ii) general-during the period from October 1-February 15; one deer or exotic 
mammal as specified on the permit; by special permit; 
  
  (B)  squirrel-on designated days; by regular permit; 
  
  (C) (No change.) 
  
  (D) waterfowl-on designated days; shooting hours end at noon; by regular 
permit; 
  
  (E) woodcock-on dates and shooting hours which correspond to those designated 
for waterfowl hunts; by regular permit; 
  
  (F)  gallinules-on dates and shooting hours which correspond to those 
designated for waterfowl hunts; by regular permit; 
  
  (G) snipe-on dates and shooting hours which correspond to those established 
for waterfowl hunts; by regular permit; 
  
  (H)-(J) (No change.) 
  
  (K) special regulations-It is an offense to possess a rifle of greater size 
than .22 caliber rimfire while hunting during the season designated for 
squirrel. 
  
  (18) Kerr Wildlife Management Area: 
 
  (A)-(C) (No change.) 
  
  (D) mourning dove-on designated days; by annual public hunting permit; 
  
  (E) rabbits and hares-to correspond with hunt dates and shooting hours 
established for mourning dove; no bag or possession limit; by annual public 
hunting permit; 
  
  (F) fishing-no permit required; on-site registration required; 
  
  (G) individuals who participate only in the self-guided driving tour need not 
possess a Texas conservation passport or perform on-site registration. 
  
  (19) Kiskadee Wildlife Management Area-special regulations: 
 
  (A) -(D) (No change.) 
  
  (E) It is an offense for a person to allow a dog, cat, or other animal to 
enter the area unleashed and not under the person's physical control. 
  
  (20) Lands Within a desert bighorn sheep cooperative unit. Desert bighorn 
sheep-during the period from September 1-August 31; one desert bighorn sheep ram 
as specified on the permit; by special permit. 
  
  (21) Lower Neches Wildlife Management Area: 
 
  (A) waterfowl-on designated days; shooting hours end at noon; by annual public 
hunting permit; 
  
  (B) king and clapper rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by annual public hunting permit; 
  
  (C) sora and Virginia rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by annual public hunting permit; 
  
  (D) gallinules-on dates and shooting hours which correspond to those 
designated for waterfowl hunts; by annual public hunting permit; 
  
  (E) snipe-on dates and shooting hours which correspond to those designated for 
waterfowl hunts; by annual public hunting permit; 
  
  (F)  fishing-no permit required. 
 
  (i)-(vi) (No change.) 
  
  (G) -(H) (No change.) 
  
  (22) Mad Island Wildlife Management Area: 
 
  (A) waterfowl-on designated days; shooting hours end at noon; by regular 
permit; 
  
  (B)  king and clapper rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by regular permit; 
  
  (C) sora and Virginia rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by regular permit; 
  
  (D) gallinules-on dates and shooting hours which correspond to those 
designated for waterfowl hunts; by regular permit; 
  
  (E) snipe-on dates and shooting hours which correspond to those designated for 
waterfowl hunts; by regular permit; 
  
  (F) (No change.) 
  
  (23) Matador Wildlife Management Area: 
 
  (A) deer: 
 
  (i)  archery-on designated days during the period from September 1-January 31; 
one deer (buck only); by annual public hunting permit; 
  
  (ii)  general-during the period from October 1-February 15; one deer as 
specified on the permit; by special permit; 
  
  (B) turkey-during the months of April and May; one gobbler; by special permit; 
  
  (C) quail-on designated days; by annual public hunting permit; 
  
  (D) mourning dove-on designated days; by annual public hunting permit; 
  
  (E)  waterfowl-on designated days; by annual public hunting permit; 
  
  (F)  rabbits and hares-to correspond with hunt dates and shooting hours 
designated for quail and mourning dove; no bag or possession limits; by annual 
public hunting permit; 
  
  (G) fishing-fishing is permitted year-round, except on days when hunts are 
being conducted by special permit; annual public hunting permit required; 
  
  (H) special regulations-It is an offense if a public user fails to perform on-
site registration. 
  
  (24) Matagorda Island Wildlife Management Area: 
 
  (A) (No change. ) 
  
  (B) quail-on designated days; by regular permit; 
  
  (C)  mourning dove-on designated days; by regular permit; 
  
  (D)  waterfowl-on designated days; shooting hours end at noon; by regular 
permit, except within the designated marsh unit no permit is required, there is 
no restriction to designated hunt days, and shooting hours do not end at noon; 
  
  (E) king and clapper rails-on dates and shooting hours and permit requirements 
which correspond to those designated for waterfowl hunts; 
  
  (F) sora and Virginia rails-on dates and shooting hours and permit 
requirements which correspond to those designated for waterfowl hunts; 
  
  (G) gallinules-on dates and shooting hours and permit requirements which 
correspond to those designated for waterfowl hunts; 
  
  (H)  snipe-on dates and shooting hours and permit requirements which 
correspond to those designated for waterfowl hunts. 
  
  (25) M. O. Neasloney Wildlife Management Area: 
 
  (A) fishing-no open season; 
  
  (B) special regulations-Access for non-consumptive use is only through prior 
arrangement with the department. 
  
  (26) Old Tunnel Wildlife Management Area-special regulations. 
 
  (A) -(D) (No change.) 
  
  (E) It is an offense for a person to allow a dog, cat, or any animal to enter 
the area unleashed and not under the person's physical control. 
  
  (F) (No change.) 
  
  (27) Pat Mayse Wildlife Management Area: 
 
  (A) deer and exotic mammals: 
 
  (i) archery-one deer or exotic mammal (either-sex); no annual public hunting 
permit required; 
  
  (ii) (No change.) 
  
  (B)  squirrel-closed on days designated for hunts by special permit; no annual 
public hunting permit required; 
  
  (C) quail-closed on days designated for hunts by special permit; no annual 
public hunting permit required; 
  
  (D) mourning dove-closed on days designated for hunts by special permit; no 
annual public hunting permit required; 
  
  (E) waterfowl-no annual public hunting permit required; 
  
  (F) woodcock-closed on days designated for hunts by special permit; no annual 
public hunting permit required; 
  
  (G) gallinules-no annual public hunting permit required; 
  
  (H) snipe-no annual public hunting permit required; 
  
  (I)  rabbits and hares-no closed season, except no hunting for rabbits or 
hares on days designated for hunts by special permit; no bag or possession 
limit; no annual public hunting permit required; 
  
  (J) furbearing animals-during the period from September 1-March 31, except 
season closed on days designated for hunts by special permit; no annual public 
hunting permit required; 
  
  (K) feral hog: archery-to correspond with the archery only season for taking 
deer and exotic mammals; no bag or possession limit; no annual public hunting 
permit required; 
  
  (L) coyote-during the period from September 1-March 31, except season closed 
on days designated for hunts by special permit; no bag or possession limit; no 
annual public hunting permit required; 
  
  (M) special regulations. 
 
  (i) It is an offense to use any device other than shotguns with non-toxic shot 
or no larger than size #4 lead shot or bow and arrow for hunting, except that 
rifles (including muzzleloaders) or shotguns with rifled slugs are the only 
legal firearms for taking deer, exotic mammals, or feral hogs during the general 
season prescribed for deer and exotic mammals (Nontoxic shot requirements for 
hunting waterfowl remain in effect). 
  
  (ii) (No change.) 
  
  (iii) Exemption from the daylight restriction for open seasons is provided for 
hunting coyotes and furbearers. 
  
  (28) Peach Point Wildlife Management Area: 
 
  (A) waterfowl-on designated days; shooting hours end at noon; by regular 
permit; 
  
  (B)  king and clapper rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by regular permit; 
  
  (C) sora and Virginia rails-on dates and shooting hours which correspond to 
those designated for waterfowl hunts; by regular permit; 
  
  (D) gallinules-on dates and shooting hours which correspond to those 
designated for waterfowl hunts; by regular permit; 
  
  (E) snipe-on dates and shooting hours which correspond to those designated for 
waterfowl hunts; by regular permit. 
  
  (F) feral hog: General-during the period from September 1-August 31; no bag or 
possession limit; by special permit. 
  
  (29) Richland Creek Wildlife Management Area: 
 
  (A) deer and exotic mammals: 
 
  (i) archery-on designated days during the period from October 1-October 31; 
one deer or exotic mammal (either-sex); by annual public hunting permit. 
  
  (ii) general-during the period from October 1-February 15; one deer or exotic 
mammal as specified on the permit; by special permit; 
  
  (B) squirrel-during the season as provided, except closed on days designated 
for hunts by special permit; by annual public hunting permit; 
  
  (C) quail-during the season as provided, except closed on days designated for 
hunts by special permit; by annual public hunting permit; 
  
  (D) mourning dove-by annual public hunting permit; 
  
  (E) waterfowl-on designated days; shooting hours end at noon; by annual public 
hunting permit; 
  
  (F) woodcock-on dates and shooting hours which correspond with those 
designated for waterfowl hunts; by annual public hunting permit; 
  
  (G) gallinules-on dates and shooting hours which correspond to those 
designated for waterfowl hunts; by annual public hunting permit; 
  
  (H) snipe-on dates and shooting hours which correspond to those designated for 
the waterfowl hunts; by annual public hunting permit; 
  
  (I) rabbits and hares-to correspond with dates and shooting hours designated 
for squirrel, quail, mourning dove, or waterfowl hunts; no bag or possession 
limits; by annual public hunting permit; 
  
  (J)  feral hog-archery-to correspond with the archery only season for taking 
deer and exotic mammals; no bag or possession limit; by annual public hunting 
permit; 
  
  (K) fishing-closed on dates designated for hunts by special permit; by annual 
public hunting permit, except that fishermen who enter and exit the area by boat 
are not required to possess an annual public hunting permit; 
  
  (L) special regulations. 
 
  (i) It is an offense to possess any device other than a shotgun or bow and 
arrow for hunting on that portion of the area located north of U.S. Highway 287. 
  
  (ii) It is an offense to possess a rifle of greater size than .22 caliber 
rimfire while hunting during the season designated for squirrel. 
  
  (30)Sheldon Wildlife Management Area: fishing-no permit required. 
 
  (A)-(D) (No change.) 
  
  (31) Sierra Diablo Wildlife Management Area: 
 
  (A) deer: 
 
  (i) archery-during the period from September 1-January 31; one deer (buck 
only); by special permit; 
  
  (ii) general-during the period from October 1-February 15; one deer as 
specified on the permit; by special permit; 
  
  (B) javelina: archery-to correspond with dates designated for archery only 
deer hunts; one javelina (either-sex); by special permit; 
  
  (C)-(D) (No change.) 
  
  (32) Somerville Wildlife Management Area: 
 
  (A) Deer and Exotic Mammals: 
 
  (i) Archery-one deer or exotic mammal (either-sex); by annual public hunting 
permit; 
  
  (ii) (No change.) 
  
  (B)  squirrel-closed on days designated for hunts by special permit; by annual 
public hunting permit; 
  
  (C) quail-closed on days designated for hunts by special permit; by annual 
public hunting permit; 
  
  (D) mourning dove-closed on days designated for hunts by special permit; by 
annual public hunting permit; 
  
  (E) waterfowl-closed on days designated for hunts by special permit; by annual 
public hunting permit; 
  
  (F) woodcock-closed on days designated for hunts by special permit; by annual 
public hunting permit; 
  
  (G) gallinules-closed on days designated for hunts by special permit; by 
annual public hunting permit; 
  
  (H) snipe-closed on days designated for hunts by special permit; by annual 
public hunting permit; 
  
  (I) rabbits and hares-no closed season, except no hunting for rabbits or hares 
on days designated for hunts by special permit; no bag or possession limit; by 
annual public hunting permit; 
  
  (J) feral hog: archery-to correspond with the archery only season for taking 
deer, and additionally during the period from January 15-March 15; no bag or 
possession limit; by annual public hunting permit. 
  
  (K) Special regulations. 
 
  (i)  (No change.) 
  
  (ii) It is an offense to use any device other than shotguns with nontoxic shot 
or no larger than size #4 lead shot or bow and arrow for hunting, except that 
rifles (including muzzleloaders) or shotguns with rifled slugs are the only 
legal firearms for taking deer, exotic mammals, or feral hogs during the general 
season prescribed for deer and exotic mammals (Nontoxic shot requirements for 
hunting waterfowl remain in effect). 
  
  (33) Walter Buck Wildlife Management Area: 
 
  (A)-(D) (No change.) 
 
  
  sec.65.194. Permit Required and Fees. 
 
  (a) A Texas conservation passport is required of each individual, 17 years of 
age or older, to obtain access to wildlife management areas for participation in 
nonconsumptive activities, except on the Dam B, Granger, James E. Daughtrey, Pat 
Mayse, and Somerville Wildlife Management Areas where a Texas conservation 
passport is not required for nonconsumptive use. The Texas conservation passport 
is not required of individuals participating in hunting and fishing activities 
or educational programs and management demonstrations sponsored by the 
department. 
  
  (b) No permit is required for fishing, except on the Black Gap, Gene Howe, Gus 
Engeling, Kerr, Matador, and Richland Creek Wildlife Management Areas where an 
annual public hunting permit is required, and no permit is required to hunt 
waterfowl, rails, gallinules or snipe within the designated marsh unit of the 
Matagorda Island Wildlife Management Area. An annual public hunting permit is 
not required to hunt on the Pat Mayse Wildlife Management Area, and supervised 
minor age participants are exempt from requirement for an annual public hunting 
permit; otherwise, none of the wildlife resources of the wildlife management 
areas may be taken except by holders of permits that have been issued by the 
Parks and Wildlife Department. 
  
  (c)-(e) (No change.) 
  
  (f) The department shall charge a permit fee in the amount set by the 
commission as authorized by the Texas Parks and Wildlife Code, sec.81.403(c). 
  
  (g) The fees for special and regular permits are: 
 
  (1) (No change.) 
  
  (2) deer and exotic mammals-extended period-$100; 
  
  (3) pronghorn antelope-$50; 
  
  (4)  alligator-$50; 
  
  (5) javelina-$25; 
  
  (6) turkey-$25; 
  
  (7) feral hog-$25; 
  
  (8) coyote-$25; 
  
  (9) white-winged dove and white-tipped dove-$12; 
  
  (10) squirrel-$6.00; 
  
  (11)  quail-$6.00; 
  
  (12) mourning dove-$6.00; 
  
  (13) woodcock-$6. 00; 
  
  (14) waterfowl-$6.00; 
  
  (15) rails-$6.00; 
  
  (16)  gallinules-$6.00; 
  
  (17) snipe-$6.00; 
  
  (18) desert bighorn sheep-no charge. 
  
  (h) Only one permit fee will be assessed in the event of concurrent hunts for 
multiple species, and the fee for the legal species having the most expensive 
permit will prevail. 
  
  (i) Any applicable regular permit fees will be waived for persons possessing 
an annual public hunting permit and for minor age participants under the 
supervision of a duly permitted authorized supervising adult. 
  
  (j) A permit is issued to a specific person, and neither the permit nor the 
rights granted thereunder are transferrable to another person. 
  
  (k) The fees for annual public hunting permits and Texas conservation 
passports are: 
 
  (1) annual public hunting permit-$35; 
  
  (2)  Texas conservation passport-$25. 
 
  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 June 10, 1992. 
 TRD-9207958 
  Paul M. Shinkawa 
 Director, Legal Services 
 Texas Parks and Wildlife Department 
  Effective date: September 1, 1992 
 Proposal publication date: April 17, 1992 
 For further information, please call: (512) 389-4770 
         
  
  Subchapter P. Alligators 
 
  31 TAC sec.sec.65.352-65.354, 65.356, 65.358, 65.359, 65.361, 65. 363, 65.364, 
65.368 
 
  The Texas Parks and Wildlife Commission in a regularly scheduled public 
hearing held May 21, 1992, adopted amendments to sec. sec.65.352-65.356, 65.358, 
65.359, 65.361, 65.363, 65.364, and 65.368, concerning taking, possession, and 
propagation of alligators statewide, without changes to the proposed text as 
published in the April 17, 1992, issue of the Texas Register  (17 TexReg 2693). 
 The adopted amendments were the result of substantive input received from 
constituents involved in hunting and farming of alligators and from the 
Alligator Resources Advisory Board (ARAB). These groups identified three issues 
regarding the Texas Parks and Wildlife Department alligator program which 
required amendment to existing regulations. These were: simplification and 
clarification of existing rules; restructuring of pertinent fees and; improved 
customer service. Amendments to the existing rules were drafted and adopted to 
address these issues. 
 The ARAB specifically identified the need for modification of hide tagging 
requirements to allow removal of an alligator from a collection device prior to 
tagging of the alligator ( sec.65.353), extending the reporting period for 
alligator hunting reports from five days to seven days (sec.65.351), and 
clarification of egg collection requirements (sec.65.354). 
 The alligator program is unique among Texas harvest programs in that it is 
almost entirely a commercial enterprise. While some sport hunting of alligators 
does take place, alligators taken for sport constitute less than 5. 0% of all 
alligators taken. The commission has historically allowed the alligator program 
to operate at a deficit to the department to allow the program to become 
established. 
 The ARAB and staff analyzed the fee structure to determine how any deficit 
could be reduced substantially, if not entirely. The staff proposed raising the 
hide tag fee from $5.00 to $10 for harvested alligators and lowering the hide 
tag fee for farm raised alligators from $5.00 to $4.00. In 1991, the average 
harvested alligator was about seven feet in length and worth about $210-$250. 
The $5.00 hide tag fee then represents about 2.0%-2.4% of the value of the hide. 
The value of a typical farm raised alligator is about $60-$75, and the $5.00 
hide tag represents about 6.7%-8.3% of the hide value. Raising the hide tag fee 
for the harvested alligators would represent a hide tag fee equaling 4.0%-4.7% 
of the hide value and lowering the farm raised alligator hide tag to $4.00 would 
represent 5.3% to 6.6% of the hide value. 
 The last issue identified by the ARAB was that of improved customer service to 
TPWD constituencies. Principal concerns were those of inability to obtain 
alligator hide tags and permits in a timely fashion, and the need for a more 
streamlined reporting system. As a result of these suggestions, alligator 
farmers will be able to obtain hide tags from regional law enforcement offices 
located in the areas of heaviest alligator activity permitting procedures have 
been streamlined. 
 The rules provide harvest of alligator resources consistent with populations of 
alligators and regulate use of alligators in farming of this species. 
 Two comments were received regarding the proposed amendments to existing rules. 
Both comments were in favor of the rules as proposed. 
 Those commenting in favor of the proposed amendments were the Sportsmen 
Conservationists of Texas (SCOT) and the Texas Alligator Farmer's Association. 
There were no comments in opposition to the amendments as proposed. 
 The amendments are adopted under the Texas Parks and Wildlife Code, Chapter 65, 
which provides the Parks and Wildlife Commission with authority to regulate 
taking, possession, propagation, transportation, exportation, importation, sale, 
and offering for sale of alligator or parts of alligators as considered 
necessary to manage the species. 
 
  This agency hereby certifies that the rules as adopted have been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on June 10, 1992. 
 TRD-9207956 
  Paul M. Shinkawa 
 Director, Legal Services 
 Texas Parks and Wildlife Department 
  Effective date: July 1, 1992 
 Proposal publication date: April 17, 1992 
 For further information, please call: 1-800-792-1112, ext 4433 or (512) 389-
4433 
         
  
  Subchapter U. Type II Wildlife Management Area-Public Hunting Lands 
 
  31 TAC sec.sec.65.702-65.705 
 
  The Texas Parks and Wildlife Commission in a regularly scheduled public 
hearing held May 21, 1992, adopted amendments to sec. sec.65.702-65.705, 
concerning Type II Wildlife Management Area-Public Hunting Lands Proclamation, 
without changes to the proposed text as published in the April 17, 1992, issue 
of the Texas Register (17 TexReg 2695). The rules as adopted provide additional 
public hunting opportunity, promote youth participation, safeguard natural 
resources, and assure cost effectiveness based upon studies and investigations. 
 The amendments as adopted were necessary to provide new definitions, reduce 
unauthorized off-road vehicle use, provide safeguards for natural resources, 
improve cost effectiveness, and provide increased public hunting opportunity. 
 The rules permit the taking of wildlife resources on Type II Wildlife 
Management Areas consistent with their population levels and provide equitable 
hunting opportunity. 
 Comments by the public concerning the amendments as proposed were presented to 
the Texas Parks and Wildlife Commission in its May 21, 1992, public hearing. 
Comments were received at the departmental headquarters in the form of letters 
and telephone calls from three individuals who expressed opposition to the 
proposed prohibition of the use of all terrain vehicles except by disabled 
persons. 
 The Texas Parks and Wildlife Commission disagreed with the comments received 
because they were judged not to be compatible with wildlife resource management 
and were contrary to the best interest of the overall public user group. Off-
road activity by all terrain vehicles has been documented as resulting in 
extensive resource damage through the establishment of unauthorized roadways and 
harassment of wildlife populations. Unauthorized off-road use by all terrain 
vehicles has also resulted in numerous complaints from other public users 
alleging disturbance of their outdoor experience. Therefore, it was determined 
to be in the best interest of the resource and all public users to prohibit the 
use of all terrain vehicles on wildlife management areas except by disabled 
persons. 
 The amendments are adopted under the Texas Parks and Wildlife Code, Chapter 81, 
Subchapter E, which provides the Texas Parks and Wildlife Commission with 
authority to regulate seasons, numbers, means, methods, and conditions for 
taking wildlife resources on wildlife management areas. 
 
  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 June 10, 1992. 
 TRD-9207957 
  Paul M. Shinkawa 
 Director, Legal Services 
 Texas Parks and Wildlife Department 
  Effective date: September 1, 1992 
 Proposal publication date: April 17, 1992 
 For further information, please call: 1-800-792-1112, ext. 4433 or (512) 389-
4433 
         
  Part X. Texas Water Development Board 
  Chapter 353. Introductory Provisions 
  
  General Provisions 
 
  31 TAC sec.353.13 
 
  The Texas Water Development Board (board) adopts new sec.353.13, concerning 
general provisions, without changes to the proposed text as published in the 
April 17, 1992, issue of the Texas Register (17 TexReg 2728). 
 The new section concerns the adoption by reference of a memorandum of 
understanding (MOU) between the Texas Natural Resources Information System of 
the board and the Department of Information Resources. The MOU defines the 
respective responsibilities of the two agencies as they cooperate in the 
development and management of geographic information systems. 
 No comments were received regarding adoption of the new section. 
 The new section is adopted pursuant to the Texas Water Code, sec.6.104, which 
authorizes the board to enter into a memorandum of understanding with any other 
state agency and to adopt by rule any memorandum of understanding between the 
board and any other state agency and pursuant to the Texas Water Code, 
sec.6.101, which authorizes the board to adopt rules necessary to carry out its 
powers and duties. 
 
  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 June 9, 1992. 
 TRD-9207947 
  Suzanne Schwartz 
 General Counsel 
 Texas Water Development Board 
  Effective date: June 30, 1992 
 Proposal publication date: April 17, 1992 
 For further information, please call: (512) 463-7981 
         
  
  TITLE 37. PUBLIC SAFETY AND CORRECTIONS 
 Part IX. Texas Commission on Jail Standards 
  Chapter 259. New Construction Rules 
  
  New Low-Risk and Medium-Risk Design, Construction, and Furnishing Requirements 
 
  37 TAC sec.sec.259.201-259.205, 259.207, 259.212-259.216, 259.233, 259.235, 
259.256 
 
  The Texas Commission on Jail Standards adopts amendments to sec.sec.259. 201-
259.205, 259.207, 259.212-259.216, 259.233, 259.235, and 259.256, without 
changes to the proposed text as published in the May 8, 1992, issue of the Texas 
Register (17 TexReg 3370). 
 The commission has added medium-risk as a custody level in county jails. It is 
therefore necessary to add design and construction requirements and guidelines 
to minimum jail standards. 
 Enforcement of medium-risk design and construction requirements will utilize 
existing jail space and will efficiently and economically guide new jail 
construction while still providing appropriate protection for the community, 
corrections staff, and inmates. 
 No comments were received regarding adoption of the amendments. 
 The amendments are adopted under the Government Code, Chapter 511, which 
provides the Texas Commission on Jail Standards with the authority to adopt 
reasonable rules and procedures establishing minimum standards for the 
construction, equipment, maintenance, and operation of county jails. 
 
  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 June 8, 1992. 
 TRD-9207965 
  Jack E. Crump 
 Executive Director 
 Texas Commission on Jail Standards 
  Effective date: July 1, 1992 
 Proposal publication date: May 8, 1992 
 For further information, please call: (512) 463-5505 
         
  Chapter 271. Classification and Separation of Inmates 
  
  37 TAC sec.271.1 
 
  The Texas Commission on Jail Standards adopts an amendment to sec.271.1, 
without changes to the proposed text as published in the May 8, 1992, issue of 
the Texas Register  (17 TexReg 3370). 
 The custody levels in county jails will include a medium-risk classification. 
This section gives instructions for assessing and classifying jail inmates 
according to low-risk, medium-risk, and high-risk custody levels. 
 The section will provide efficient and economical utilization of existing and 
future jail space, while still providing appropriate protection for the 
community, corrections staff, and inmates. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under the Government Code, Chapter 511, which provides 
the Texas Commission on Jail Standards with the authority to adopt reasonable 
rules and procedures establishing minimum standards for the construction, 
equipment, maintenance, and operation of county jails. 
 
  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 June 8, 1992. 
 TRD-9207966 
  Jack E. Crump 
 Executive Director 
 Texas Commission on Jail Standards 
  Effective date: July 1, 1992 
 Proposal publication date: May 8, 1992 
 For further information, please call: (512) 463-5505