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 ACTION
The Commissioner of Insurance, at a public hearing under Docket Number 2296 
scheduled for July 24, 1997 at 9:00 a.m., in Room 100 of the William P. Hobby 
Jr. State Office 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 amendments to 
Rule 41 to change the premium charge for attachment of appropriate Financial 
Responsibility Certification endorsements, and to reword those endorsements (571 
and TE 99 82A). Staff's petition (Reference Number A-0697-18-I) was filed on 
June 11, 1997. 
Staff proposes to amend Manual Rule 41 to change the premium charge for 
attachment of appropriate Financial Responsibility Certification endorsements to 
a flat $50 charge, as well as to reword those endorsements (571 and TE 99 82A, 
to be redesignated as 571A and TE 99 82B, respectively). The $50 amount would 
replace the current charge, which consists of 10% of the basic limits bodily 
injury and property damage liability premium that would be paid by the insured 
for whom the certificate is filed. 
Under the Texas Motor Vehicle Safety Responsibility Act, the Department of 
Public Safety (DPS) under some circumstances must require a vehicle operator to 
provide "evidence of financial responsibility." This may be done by filing with 
DPS the certificate of an insurance company certifying that an auto liability 
insurance policy is in effect for the benefit of that operator. Such a 
certificate is called an SR-22, which is referenced in Manual Endorsements 571 
and TE 99 82A. Each endorsement provides for an additional premium charge and 
sets forth the insurer's obligation to give prior written notice to DPS before 
cancellation or termination of the policy. 
When Rule 41 was adopted to allow recovery of administrative costs, basic 
premiums were much lower, and charges for attachment of Financial Responsibility 
Certification endorsements were also much lower, as the latter charges were (and 
are) based upon the former. As basic premiums have risen sharply, so have the 
charges for attachments of these endorsements, although based on Staff's 
analysis, no more work is involved in such attachment than initially. 
Furthermore, the majority of SR-22 filings are processed and filed by the Texas 
Automobile Insurance Plan Association, not the assigned insurer. The direct cost 
to the assigned insurer, in such cases, is limited to the filing of policy 
cancellation notice. 
When an insurer files an SR-22 for an insured, the appropriate endorsement is 
issued, and an additional premium charge is made, being "10% of basic limits 
bodily injury and property damage liability total policy premium...." Examples 
in Staff's petition show how a policyholder can be severely affected by the 
provisions of Rule 41, although administrative costs for the insurance company 
apparently do not vary for attachment of such an endorsement for any affected 
driver. Staff's opinion is that a flat $50 charge per driver should be adequate 
reimbursement of an insurer's administrative expenses for certification with 
DPS, and attachment of the appropriate endorsement. Staff proposes that Rule 41 
be amended accordingly, and that Endorsements 571 and TE 99 82A also be amended 
to reflect this change. The amendment of those endorsements would consist 
partially of eliminating references to Bodily Injury Liability and Property 
Damage Liability, as the premiums for those coverages would no longer be 
relevant. In order to avoid the possible need for amending these endorsements in 
the future because of inflation, Staff recommends leaving a blank space in each 
endorsement for the charge to be made. 
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-0697-18-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). 
Issued in Austin, Texas, on June 13, 1997.
TRD-9707792
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: June 13, 1997

The Commissioner of Insurance, at a public hearing under Docket Number 2297 
scheduled for July 24, 1997 at 9:00 a.m. in Room 100 of the William P. Hobby, 
Jr. State Office 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 1995-1998 model Private Passenger Automobile Physical Damage Rating 
Symbols and revised identification information. Staff's petition (Reference 
Number A-0697-19-I) was filed on June 11, 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 1995-1998 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-0697-19-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). 
Issued in Austin, Texas, on June 13, 1997.
TRD-9707789
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: June 13, 1997