28 TAC §34.1004
The Commissioner of Insurance adopts amended §34.1004
concerning residential stovetop fire suppression device approval. The amended
section is adopted without changes to the proposed text as published in the
May 26, 2000 issue of the
Texas Register
(25
TexReg 4709) and will not be republished.
The amended section is necessary to set forth the criteria which will allow
insurers to offer a second category of insurance premium discount for a correctly
installed residential stovetop fire suppression device, as defined by statute,
that has been approved by the state fire marshal through the commissioner
and also adds requirements for all categories of devices. Amendments to the
Texas Personal Lines Manual regarding provisions for optional credits for
Homeowners and Dwelling policies for residential stovetop fire suppression
devices have been adopted by Commissioner's Order Number 00-0777. The amendment
to §34.1004 applies only to residential stovetop fire suppression devices
in use on or after January 1, 2000. The 76th Legislature enacted Senate Bill
139, which amended Subchapter C, Chapter 5, by adding Article 5.33C to the
Insurance Code. Article 5.33C provides that a policyholder of a single-family
or multifamily dwelling, apartment owner, or condominium owner is eligible
for a premium reduction for homeowner's insurance coverage or fire or commercial
fire insurance coverage if the policyholder has correctly installed on the
covered property a residential stovetop fire suppression device that has been
approved by the state fire marshal through the commissioner. Because the legislation
contemplated that it is the policyholder who installs the device and that
the discount is granted for "a correctly installed and functioning stovetop
fire suppression device," the authority of the state fire marshal is limited
solely to approval of the device to qualify for an optional premium discount
on certain homeowner's, fire, and commercial fire insurance premiums. The
current statute and rules relating to fire extinguishers (Insurance Code Article
5.43-1; 28 TAC Chapter 34, Subchapters D and E) regulate, among other things,
the leasing, selling, installing, and servicing of fire extinguishers, and
prohibit the sale or use of all fire extinguishers, equipment, and systems
that are not labeled or listed by an approved testing laboratory pursuant
to nationally recognized or laboratory developed standards. As with that statute
and rules, the state fire marshal has developed criteria for approving residential
stovetop fire suppression devices, for purposes of the premium discount, with
reference to product certification by nationally recognized testing facilities
and methods. Currently, there is no single recognized national standard for
residential stovetop fire suppression devices. The state fire marshal has
utilized a combination of standards and test criteria developed by recognized
product performance standards organizations that the state fire marshal believes
would best demonstrate the integrity of the product, provide a minimum performance
capability, and afford the user a minimum level of safety in safeguarding
lives and property.
Amended §34.1004 covers, among other things, a category of device
that is not intended to extinguish deep fat fires; accordingly, the adopted
approval criteria utilize applicable standards from the referenced publications
from Underwriters Laboratories that would apply to this type of device. Concomitantly,
the amendment requires labeling of the limitations of the device to be printed
prominently on the device itself, in the installation manual, and conveyed
in any sales literature or presentations. The amendment further provides that
the manufacturer of any stovetop fire suppression device will require the
approved testing laboratory to send to the state fire marshal's office a certificate
of compliance signed by a registered engineer and that record copies of the
test results will be maintained and provided to the state fire marshal's office
upon written request. The other requirements of the rule concerning a certification
mark and instruction manual also apply to all stovetop fire suppression devices.
Comment: One commenter stated that the proposal will allow the qualification
of "limited use extinguishing devices" which it stated might provide some
protection against stovetop fires, but which are less than complete systems.
The commenter stated that these devices are admittedly less expensive than
complete systems but have many inherent design deficiencies. The commenter
supported the labeling of the limitations of the devices and suggested some
follow-up monitoring to ensure that the advertising and marketing of products
accurately reflects the standards set by the tests and owners' manuals. The
commenter further stated that even though there is no single recognized national
standard for residential stovetop fire suppression devices, UL Subject 300A
comes closest to identifying generally-recognized safety criteria and performance
standards for testing products of this nature, together with other Underwriters
Laboratories (UL) safety standards and National Fire Protection Association
(NFPA) standards. The commenter stated that modification of UL Subject 300A
tests to qualify more extinguishing devices will not have UL approval and
that, in effect, Texas is creating for this purpose its own testing and standards
criteria. The commenter queried that if "some protection" is better than none,
whether the State has any data or experience to determine what discounts should
be offered for "some protection." The commenter also questioned whether there
would be possible third or fourth tier product lines available for discounts
based on gradually reducing the UL Subject 300A standards even further.
Agency Response: The department disagrees. Amended §34.1004 covers,
among other things, a category of device that is not intended to extinguish
deep fat fires; accordingly, the adopted approval criteria utilize applicable
standards from the referenced publications from Underwriters Laboratories
that would apply to this type of device. The amendment requires labeling of
the limitations of the device to be printed prominently on the device itself,
in the installation manual, and conveyed in any sales literature or presentations.
The amendment further provides that the manufacturer of any stovetop fire
suppression device will require the approved testing laboratory to send to
the state fire marshal's office a certificate of compliance signed by a registered
engineer. Thus, Texas is not creating for this purpose its own testing and
standards criteria, as described by the commenter, but is rather recognizing
the stated purpose of these types of devices upon which the approved testing
laboratory will conduct the applicable tests. The State Fire Marshal necessarily
must deal with the devices that are available and that will be presented for
approval to qualify for an optional premium discount in accord with Senate
Bill 139, 76th Legislature. To that extent, the State Fire Marshal has utilized
a combination of standards and test criteria developed by recognized product
performance standards organizations that the State Fire Marshal believes would
best demonstrate the integrity of the product, provide a minimum performance
capability, and afford the user a minimum level of safety in safeguarding
lives and property. The department understands the commenter's concerns about
compliance and intends to ensure compliance with the section, and further,
in the usual course of the State Fire Marshal's monitoring of reports from
Texas fire incidents, fire losses involving fire suppression devices will
be studied to determine the continuing applicability of any premium discount
amounts. Premium discount amounts have been the subject of a separate proceeding;
however, the department notes that actual discount amounts are determined
based on actuarial judgment in reviewing fire loss data.
Comment: The commenter also stated its belief that since most, if not all,
of these extinguishing devices fit under a stove's range hood, by definition,
they do not meet the standards of NFPA 17 or UL 1254 which require that the
dry chemical container and expellant gas assemblies be located near the hazard
or hazards but not where they will be exposed to a fire or explosion in these
hazards.
Agency Response: The department agrees and disagrees. The State Fire Marshal
does not conduct the tests; the authority of the State Fire Marshal is limited
by legislation solely to approval of the device to qualify for an optional
premium discount on certain homeowner's, fire, and commercial fire insurance
premiums. The department notes that the standards referred to by the commenter
contemplate that new or different products may be developed, and therefore
provide that testing shall be according to the intent of the requirements
in the standards. The department further points out that amended §34.1004
retains UL 1254 "Standard for Pre-engineered Dry Chemical Extinguishing System
Units" or UL 299 "Dry Chemical Fire Extinguishers" as one of the standards
which must be met by all residential stovetop fire suppression devices; therefore,
a testing laboratory is required to test the device according to these standards,
and the manufacturer of the device must require the approved testing laboratory
to send to the State Fire Marshal's office a certificate of compliance, signed
by a registered engineer, that certifies that the tested device meets the
applicable approval criteria.
Against: Twenty First Century International Fire Equipment and Services
Corporation.
The amended section is adopted pursuant to the Insurance Code
Article 5.33C and §36.001. Article 5.33C provides that a policyholder
of a single-family or multifamily dwelling, apartment owner, or condominium
owner is eligible for a premium reduction for homeowner's insurance coverage
or fire or commercial fire insurance coverage if the policyholder has correctly
installed on the covered property a residential stovetop fire suppression
device that has been approved by the state fire marshal through the commissioner
and permits the commissioner to adopt rules necessary for the implementation
of the article. Insurance Code §36.001 authorizes the Commissioner of
Insurance to adopt rules for the conduct and execution of the duties and functions
of the Texas Department of Insurance only as authorized by statute.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on June 30, 2000.
TRD-200004555
Lynda Nesenholtz
General Counsel
Texas Department of Insurance
Effective date: July 20, 2000
Proposal publication date: May 26, 2000
For further information, please call: (512) 463-6327