TITLE exempt-filings

Texas Department Of Insurance

Proposed Action on Rules

EXEMPT FILING NOTIFICATION PURSUANT TO THE INSURANCE CODE CHAPTER 5, SUBCHAPTER L, ARTICLE 5.96

Notice is given that the Commissioner of Insurance will consider a proposal made in a staff petition which seeks amendment of the Texas Automobile Rules and Rating Manual (the Manual), to revise Endorsement TE 23 17, "Truckers - Intermodal Interchange Uniform Endorsement (Form UIIE-1)." Staff's petition (Ref. No. A-0602-21-I), was filed on June 6, 2002.

Staff proposes to revise the above mentioned endorsement and to rename it as "TE 23 17A, Truckers Uniform Intermodal Interchange Endorsement (IANA Form UIIE-1)." Several editorial changes are proposed, but the substantive change modifies and clarifies what the Motor Carrier's responsibilities are in regard to third party liability. Under the current endorsement, the "User" (Motor Carrier), "while in possession of interchange equipment, releases and agrees to defend, indemnify and hold harmless the Owner..." from loss arising out of the use of that equipment, "except loss or damage to such interchange equipment, or cargo being transported therein or cargo being loaded or unloaded or held at terminal or transit points incident to transportation."

Staff's proposed amendment removes the exception from liability set forth in the above provision, and the Motor Carrier accessing the premises of an intermodal facility for the purpose of picking up or dropping off intermodal equipment would assume the liability for its own activity at the time it enters the facility property. That liability time frame would be for "the Motor Carrier's: Use or maintenance of the equipment during an interchange period; the performance of this Agreement; and/or presence on the Facility Operator's premises." The Manual's current Endorsement TE 23 17 is worded to conform to Form UIIE-1, which was developed by the Intermodal Transportation Association, which is now the Intermodal Association of North America (IANA). The proposed Endorsement TE 23 17A would conform to IANA Form UIIE-1, which is designed to replace Form UIIE-1. The letters "UIIE" refer to a Truckers Uniform Intermodal Interchange Endorsement.

IANA administers the Uniform Intermodal Interchange and Facilities Access Agreement (UIIA) that was revised effective September 1, 2000. According to IANA this standard contract is applicable generally between approximately 5,100 truckers/draymen and approximately 55 ocean and rail carriers, and it sets forth responsibilities of both the providing carrier of equipment and the receiving carrier of that equipment. Although the Department does not approve the agreement (UIIA), that document is referenced in proposed TE 23 17A in a similar manner to current TE 23 17's references to the predecessor agreement, Uniform Intermodal Interchange Contract (UIIC-1).

To promote uniformity and to bring the Manual's TE 23 17 up to date, Staff recommends adoption of proposed TE 23 17A.

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 Sylvia Gutierrez at (512) 463-6327; refer to (Ref. No. A-0605-021-I).

Comments on the proposed changes must be submitted in writing no later than 5:00 p.m. on July 22, 2002 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 Marilyn Hamilton, Associate Commissioner, Property & Casualty Program, Texas Department of Insurance, P. O. Box 149104, MC 104-PC, Austin, Texas 78714-9104.

A public hearing on this matter will not be held unless a separate request for a hearing is submitted to the Office of the Chief Clerk during the comment period defined above.

This notification is made pursuant to Insurance Code Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act).

TRD-200203572

Lynda H. Nesenholtz

General Counsel and Chief Clerk

Texas Department Of Insurance

Filed: June 7, 2002