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.

PROPOSED ACTIONS
The Commissioner of Insurance, at a public hearing under Docket No. 2374 
scheduled for September 23, 1998 at 9:00 a.m., in Room 102 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, 1997, 1998, and 1999 model Private Passenger Automobile 
Physical Damage Rating Symbols and revised identification information. Staff's 
petition (Ref. No. A-0798-18-I), was filed on July 9, 1998. 
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, 1997, 1998, and 1999 model vehicles.
A copy of the petition, including an exhibit with 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 (Ref. No. A-0798-18-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, 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-9811578
Lynda H. Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: July 22, 1998

The Commissioner of Insurance, at a public hearing under Docket No. 2376 
scheduled for September 23, 1998 at 9:00 a.m., in Room 102 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), Rules 55, 71, 72, 
74, and 75 concerning eligibility of certain individuals for personal auto 
coverage and the Texas Driving Insurance Plan. Staff's petition (Ref. No. A-
0798-20-I), was filed on July 22, 1998. 
The most extensive changes that Staff recommends are to Manual Rule 72 (Personal 
Auto Policy and Coverage--Eligibility). These amendments expand the list of 
persons eligible for personal auto coverage. Instead of the current requirement 
that a jointly owned auto be owned by a husband and wife, Staff's proposal would 
allow personal auto coverage for an auto jointly owned by two or more 
individuals who are residents of the same household (proposed Rules 71, 72, and 
74). Additionally, under Staff's proposed Rule 72, new Section E, personal auto 
coverage may be written for joint named insureds who are related by blood, 
marriage or adoption, and who are not residents of the same household, even if 
they do not jointly own the auto if: 1. the auto is owned by one or more of the 
joint named insureds who are residents of the household address shown in the 
policy, and 2. the joint named insured who is a resident of a different 
household is the primary operator of the auto. 
Under Staff's proposal for Rule 72.A., certain types of vehicles may be afforded 
personal auto coverage if they meet the current requirement of being written on 
a specified auto basis, plus the new standard of being owned jointly by two or 
more individuals (not necessarily husband and wife) who are residents of the 
same household. A similar change is proposed for miscellaneous type vehicles 
under Rule 72.B. 
Staff proposes amending Rule 71 (Definitions) regarding the definition of a 
utility type vehicle to be considered a private passenger auto. New wording for 
Rule 71.2.a. is proposed as follows: "a. owned or leased under written contract 
for a continuous period of at least six months: (1) by one or more individuals 
who are residents of the same household, or (2) by one or more individuals who 
are not residents of the same household, but are related by blood, marriage or 
adoption, including a ward or foster child; and...." 
In Rule 74 (Private Passenger Auto Classifications) Staff would amend Section A 
(Private passenger autos) by replacing the first two phrases with the following 
language: "owned by an individual or jointly by two or more individuals who are 
residents of the same household; or owned jointly by two or more individuals who 
are not residents of the same household address shown in the policy, but are 
related by blood, marriage or adoption, including a ward or foster child;...." 
Staff would also eliminate the following wording under Section A.5. (which 
language would no longer be accurate): "*Not eligible for coverage under a 
Personal Auto Policy." 
Staff asserts that if Rules 71, 72, and 74 are amended, then Rule 55 
(Eligibility) and Rule 75 (Texas Driving Insurance Plan) will also need to be 
amended in order for their eligibility provisions to be compatible with those 
first three rules. Therefore, Staff proposes to amend Rule 55.D.1. and E.1., and 
Rule 75.B.2. by deleting "owned by an individual or husband and wife who are 
residents of the same household...." Staff would replace the Rule 55 wording 
with the following: "described in Rule 71...." and the Rule 75 wording with the 
following: "described in Rules 71, 72, and 74...." 
The Manual currently allows certain types of vehicles to be insured by a 
Personal Auto Policy if the vehicles are owned by an individual, or by a husband 
and wife who reside in the same household. Otherwise, the vehicles cannot be 
insured except through multiple policies or by some other policy form, such as 
the Business Auto Coverage Form. Commercial policies do not provide coverage as 
broad as the Personal Auto Policy, so Staff has said it appears inappropriate to 
require them for persons not using their private passenger autos in a commercial 
enterprise. Furthermore, Staff's petition asserts it could work a financial 
hardship in some cases to require certain individuals to purchase separate 
Personal Auto Policies merely because they cannot meet the Manual's current 
requirements for one such policy. The Manual's requirements are said to be 
somewhat outdated because of changes in modern life and relationships. 
In closing, Staff's petition asserts its proposals would make it easier for 
individuals to qualify for a single Personal Auto Policy. Staff believes greater 
fairness will result from such changes. 
A copy of the petition, including exhibits with 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 (Ref. No. A-0798-20-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, 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-9811579
Lynda H. Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: July 22, 1998

The Commissioner of Insurance, at a public hearing under Docket No. 2377 
scheduled for September 23, 1998 at 9:00 a.m., in Room 102 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), Endorsement 523B, 
Rental Reimbursement Coverage. Staff's petition (Ref. No. A-0798-21-I), was 
filed on July 22, 1998. 
Staff proposes to amend the Manual's Personal Auto Policy Endorsement 523B (to 
be redesignated 523C), Rental Reimbursement Coverage, to remove the provision 
that excludes coverage when there is a total theft of the auto. Staff would 
substitute new language as follows: "When there is a total theft of the auto, 
the limit of $20 per day (maximum of $600) required under Coverage For Damage To 
Your Auto will be supplemented to the extent the limits in the above Schedule 
exceed that $20 per day limit." 
Since August 1, 1996, insureds under the Personal Auto Policy have had the 
option of purchasing variable limits of rental reimbursement coverage, up to $35 
per day (maximum of $1050) through attachment of Endorsement 523B. However, that 
endorsement does not apply to total theft of the auto, which is covered up to 
$20 per day (maximum of $600) by the policy's Part D - Coverage For Damage To 
Your Auto. 
Staff recommends deleting the language from Endorsement 523B that excludes 
coverage for total theft of the auto, and replacing that language with a 
provision that the total theft $20 per day limit under the policy will be 
supplemented to the extent the limits shown in the endorsement's Schedule exceed 
that $20 per day limit. Staff asserts that such an amendment appears to give a 
more logical result than the current endorsement's language, because an insured 
who wants $35 per day coverage will need it just as much for a total theft loss 
as for any other loss that puts the auto out of service. 
A copy of the petition, including an exhibit with 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 (Ref. No. A-0798-21-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, 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-9811580
Lynda H. Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: July 22, 1998