TEXAS DEPARTMENT OF INSURANCE Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L As 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. Texas Department of Insurance PROPOSED ACTION The Commissioner of Insurance, at a public hearing under Docket Number 2363 scheduled for July 1, 1998 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 petition by Texas Insurance Organization (TIO). TIO's petition seeks amendment of the Texas Automobile Rules and Rating Manual (the Manual) and the Texas Standard Provisions for Automobile Policies (the Standard Provisions) to eliminate the use of pre-printed dates in various forms. TIO's petition (Ref. Number A-0598-14), was filed on May 12, 1998. Many of the prescribed forms for insuring automobiles utilize pre-printing of the century so that the year can be completed by supplying the last two digits. These forms have places where dates are to be supplied and they use "19__." There is a need to change these prescribed forms as soon as possible because of the approaching turn of the century. The "19__" could be replaced by "20__." However, the TIO proposal is to leave a blank for the entire year as "____." The prescribed forms (endorsements in the Manual except where otherwise indicated) in need of this revision have been identified as follows: Endorsement 4M. Mobilowners Policy - Limited Period Collision (to become 4M-1.) Endorsement 29A. Experience Modification (to become 29B.) Endorsement 29C. Experience Modification Change (to become 29C.) Endorsement TE 99 24A - Experience Modification (to become TE 99 24B.) Endorsement TE 99 25A - Experience Modification Change (to become TE 99 25B) Mobilowners Policy Declarations (in the Standard Provisions). A copy of the petition containing the full text of the proposed amendments to the Manual and the Standard Provisions 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 (Ref. Number A-0598-14). 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, Automobile and Homeowners Group, 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). TRD-9808257 Caroline Scott General Counsel and Chief Clerk Texas Department of Insurance Filed: May 20, 1998 ADOPTED ACTION The Commissioner of Insurance ("Commissioner") at a public hearing under Docket Number 2339 on May 13, 1998, held at 9:00 a.m., in Room 100 of the William P. Hobby, Jr. State Office Building, 333 Guadalupe Street in Austin, Texas, adopted amendments to the Texas Statistical Plan For Residential Risks ("Stat Plan") as proposed by the staff of the Texas Department of Insurance ("TDI'). The amendments proposed by TDI staff are necessary to gather experience on the recently adopted mandatory premium discounts for hail-resistant roofs and for two newly approved policy endorsements. TDI staff proposed amendments to add fields of data to the Stat Plan to gather experience on the type of roof covering, the mandatory premium credit applied to a policy that has a hail- resistant roof, the amount of any voluntary premium credit given for hail- resistant roofs, the use of an exclusion for cosmetic damage to roofs endorsements, and the use of an actual cash value for roofs endorsement. In response to comments, TDI staff added a field to gather experience on the difference in the actual cash value and the replacement cost of a roof where the actual cash value endorsement is attached to a policy. An additional amendment adds new causes of loss to the existing cause of loss field that further distinguishes the previously available options. The amendments pertaining to cause of loss are adopted as they were published in the Texas Register. All other adopted amendments are revised or added in response to comments raised at a March 25, 1998 hearing before the Commissioner. Staff's petition (Ref. P-0298- 03-I) proposing the amendments was filed with the TDI Chief Clerk on February 3, 1998, and notice of the filing was published in the February 13, 1998 issue of the Texas Register (22 Tex Reg 10520). Notice of this hearing being reconvened from March 25, 1998 was published in the May 1, 1998 issue of the Texas Register. The Commissioner adopted all of the amendments described herein at the May 13, 1998 public hearing. The Commissioner has jurisdiction of this matter pursuant to the Insurance Code, Articles 5.96 and 21.69. The Insurance Code, Articles 5.96 and 21.69 authorize the filing of this petition. Article 5.96 authorizes the Commissioner to prescribe, promulgate, adopt, approve, amend, or repeal standard and uniform manual rules, rating plans, classification plans, statistical plans and policy and endorsement forms for homeowners and dwellings insurance. Article 21.69 authorizes the Commissioner to contract with or designate a statistical agent to gather data from reporting insurers under a statistical plan and to adopt rules necessary to accomplish the purposes of that article. The amendments as adopted by the Commissioner are filed with the TDI Chief Clerk under Ref. Number P-0298-03-I and are incorporated by reference by Commissioner's Order 98-0581. Consistent with the Insurance Code, Article 5.96(h), prior to the effective date of this action, TDI will notify all insurers writing the affected lines of insurance in this state. 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, ch. 2001). IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the amendments to the Texas Statistical Plan for Residential Risks as described herein, be adopted to be effective for reporting for all affected insurers on January 1, 1999 with the exception of the reporting requirements pertaining to the actual cash value for roofs endorsement, which is effective for reporting on July 1, 1998. TRD-9808239 Caroline Scott General Counsel and Chief Clerk Texas Department of Insurance Filed: May 20, 1998