TEXAS DEPARTMENT OF INSURANCENotification Pursuant to the Insurance Code, Chapter 5, Subchapter LAs required by the Insurance Code, Article 5.96 and 5.97, the Texas Register publishes notice of proposed actions by the Texas Board of Insurance. Notice of action proposed under Article 5.96 must be published in the Texas Register not later than the 30th day before the board adopts the proposal. Notice of action proposed under Article 5.97 must be published in the Texas Register not later than the 10th day before the Board of Insurance adopts the proposal. The Administrative Procedure Act, the Government Code, Chapters 2001 and 2002, does not apply to board action under Articles 5.96 and 5.97. The complete text of the proposal summarized here may be examined in the offices of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714- 9104.) This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Administrative Procedure Act. Proposed The Commissioner of Insurance will hold a public hearing under Docket Number 2281 on March 5, 1997, at 10:00 a. m. in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, Texas, to consider a petition by the staff of the Texas Department of Insurance proposing the adoption of amendments to the Homeowners and the Farm and Ranch Owners sections of the Texas Personal Lines Manual to establish an optional premium credit for homeowners and for farm and ranch owners policies for the permanent identification of personal property as a protective measure against residential burglary and the adoption of the "Inspector's Report For Compliance With The Property Identification Theft Reduction Program" form to be used to demonstrate that the policyholder qualifies for the reduction in premiums. The rules and form proposed for adoption in the staff petition are necessary to implement the recommendations of the Residential Property Insurance Loss Mitigation Advisory Committee. The petition requests consideration of the adoption of amendments to two rules in the Texas Personal Lines Manual. 1) In the Homeowners Section, Manual Rule VI-C is amended to add new item 6 "Personal Property Identification". 2) In the Farm and Ranch Owners Section, Manual Rule VI-C is amended to add new item 6 "Personal Property Identification". These rules specify the standards that policyholders must meet to qualify for the credit and provide an optional credit of up to 5% for homeowners and farm and ranch owners policies for those policyholders who comply with the property identification program. Staff proposes the adoption of an "Inspector's Report for Compliance with the Property Identification Theft Reduction Program" form to be used by inspectors certified by the Texas Commission on Law Enforcement Officer Standards and Education. The form will be used to certify that the personal property at the residence has been permanently marked or photographed in accordance with the criteria specified in the rule and that there are signs or stickers visible from the outside of the residence that indicate the personal property contained inside the residence has been permanently marked. Commissioner's Order Number 94-1029 created the Residential Property Insurance Loss Mitigation Advisory Committee (Advisory Committee). The purpose of the Advisory Committee is to advise and make recommendations to the Commissioner of Insurance for reducing residential property insurance losses. The amount of losses paid are a vital factor in determining insurance rates. A significant reduction in the amount of losses paid will ultimately reduce residential property insurance rates in Texas. In many instances, some of the losses that occur could be prevented through efforts to improve factors that have a direct bearing on losses. Prior to the establishment of the Advisory Committee, public hearings were held regarding the increasing losses from wind and hail, crime and freezing pipes. The purpose of the hearings was to allow public testimony concerning methods that could be used to help reduce the increasing losses in these areas. As a follow-up to the public hearings, the Advisory Committee was appointed to review the various methods suggested for reducing losses, as well as any other methods, and to make appropriate recommendations to the Commissioner for the implementation of such recommendations. One of the Advisory Committee's recommendations for reducing residential burglaries is the Property Identification Theft Reduction Program which involves permanently marking commonly stolen personal property in residences and posting signs or stickers that are visible from the outside of the residence that indicate the personal property contained in the residence has been permanently marked. A majority of the most commonly stolen property in residences has no identifiable markings that can be used in a recovery process. Property that is unmarked makes the residence a prime target for burglary. Unmarked property recovered by law enforcement officers cannot be traced or returned to the owner and it cannot be used in court as evidence to prosecute the burglar. Without identifiable markings, stolen property can be disposed of by criminals who profit from the crime with virtually no risk of apprehension. Permanently marked personal property is a simple and cost effective method of reducing burglary and theft losses. A residence displaying stickers or signs indicating the personal property contained in the residence has been permanently marked is a deterrent to a burglar or thief. Permanently marked property is difficult for a burglar or thief to dispose of and it is acceptable evidence to the courts for conviction of criminals. Permanently marking personal property gives law enforcement officials the opportunity to identify property quickly and return it to its rightful owner, thus reducing the loss to insurance companies. The cost to individuals who choose to identify their property can be less than $10.00. In communities where this type of program has been implemented, a decrease in burglaries and thefts has occurred. The Advisory Committee recommended that the optional credits contained in the Homeowners section and the Farm and Ranch Owners section of the Texas Personal Lines Manual be amended to include the identification of personal property as a protective measure that is eligible for an optional credit of up to five percent when such identification of personal property is in compliance with specific criteria. The Commissioner has jurisdiction of this matter pursuant to the Insurance Code, Articles 5.101, 5.96, and 5.98. Copies of the full text of the staff petition and the proposed Manual rules and form are available for review in the Office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas, 78701. For further information or to request copies of the petition and proposed amendments, please contact Angie Arizpe at (512) 322-4147 (refer to reference Number P-0197-03-I). Comments on the proposed changes must be submitted in writing within 30 days after publication of the proposal in the Texas Register to the Office of the Chief Clerk, P.O. Box 149104, MC 113-2A, Austin, Texas 78714-9104. An additional copy of the comment should be submitted to David Durden, Deputy Commissioner for Property and Casualty Lines, P.O. Box 149104, MC 104-5A, Austin, Texas 78714- 9104. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts action taken under this article from the requirements of the Administrative Procedure Act (Government Code, Title 10, chapter 2001). Issued in Austin, Texas, on January 27, 1997. TRD-9701226 Caroline Scott Assistant General Counsel Texas Department of Insurance Filed: January 27, 1997 PROPOSED The Commissioner of Insurance, at a public hearing under Docket Number 2280 scheduled for March 5, 1997 at 10:00 a.m. in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, Texas, will consider a proposal made in a staff petition. Staff's petition seeks amendment of the Texas Automobile Rules and Rating Manual (the Manual), to adopt new and/or adjusted 1997 model Private Passenger Automobile Physical Damage Rating Symbols and revised identification information. Staff's petition (Reference Number A-0197- 01-I) was filed on January 6, 1997. The new and/or adjusted symbols for the Manual's Symbols and Identification Section reflect data compiled on damageability, repairability, and other relevant loss factors for the listed 1997 model vehicles. A copy of the petition containing the full text of the proposed amendments to the Manual is available for review in the office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas. For further information or to request copies of the petition, please contact Angie Arizpe at (512) 463-6326; refer to (Reference Number A-0197-01-I). Comments on the proposed changes must be submitted in writing within 30 days after publication of the proposal in the Texas Register, to the Office of the Chief Clerk, Texas Department of Insurance, P. O. Box 149104, MC 113-2A, Austin, Texas 78714-9104. An additional copy of comments is to be submitted to David Durden, Deputy Commissioner, Property and Casualty Insurance Lines, Texas Department of Insurance, P. O. Box 149104, MC 104-5A, Austin, Texas 78714-9104. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act). This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on January 17, 1997. TRD-9700844 Caroline Scott General Counsel and Chief Clerk Texas Department of Insurance Filed: January 17, 1997