Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L
(Editor's Note: As required by the Insurance Code, Article 5.96 and 5.97, the 
Texas Register publishes notices of actions taken by the Department of Insurance 
pursuant to Chapter 5, Subchapter L, of the Code. Board action taken under these 
articles is not subject to the Administrative Procedure Act.
These actions become effective 15 days after the date of publication or on a 
later specified date.
The text of the material being adopted will not be published, but may be 
examined in the offices of the Department of Insurance, 333 Guadalupe, Austin.)
The Commissioner of Insurance, at a public hearing under Docket Number 2219 held 
at 9:00 a.m., May 9, 1996, in room 100 of the Texas Department of Insurance 
Building, 333 Guadalupe Street, Austin, Texas, adopted a form filing by the 
Texas Department of Transportation (Department) for a revised surety bond form 
entitled "Motor Vehicle Dealer's Surety Bond, Form 1923 (Rev. 12-95) " (Bond). 
The form was filed in the Chief Clerk's Office on April 11, 1996.

The 74th Legislature codified parts of Article 6686, Texas Civil Statutes into 
the Transportation Code, sec.sec.503.001, et seq, regarding the regulation of 
vehicle dealers. The 74th Legislature also passed Senate Bill 1139, effective 
June 8, 1995, requiring the Department to establish rules by which general 
distinguishing numbers for motor vehicle dealers expire on various dates during 
the year. Previously all general distinguishing numbers expired on March 31st 
each year. The Department adopted new rule 16 TAC sec.111.3 effective November 
15, 1995, to allow for staggered expiration dates of general distinguishing 
numbers.
The following revisions have been made to the Bond: Reference to the expiration 
date of the 31st day of March has been deleted. This will allow for staggered 
expiration dates for each dealer. The statutory cite of the Bond has been 
revised to reflect "(Texas Transportation Code, sec.503.033)". Previously the 
Bond cited "(V.C.S. 6686 [a] [1-A])". Reference to the division at the 
Department where payment of any judgment by the surety shall be reported has 
been changed from Vehicle Titles and Registration Division to Motor Vehicle 
Division with a new mailing address and zip code.
Notice of the revised surety bond form filing (Reference Number O-0496-12), was 
published in the April 19, 1996, issue of the Texas Register (21 TexReg 3431).
The Texas Department of Insurance has jurisdiction over this matter pursuant to 
the Insurance Code, Articles 5.13, 5.15 and 5.97.
The full text of the revised surety bond form, as adopted by the Texas 
Department of Insurance is filed with the Chief Clerk under (Reference Number O-
0496-12) and is incorporated by reference by Commissioner Order Number 96-0536.
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure Act.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be within the agency's authority.
Issued in Austin, Texas, on May 15, 1996.
TRD-9606702
Alicia M. Fechtel
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: June 5, 1996
For further information, please call: (512) 463-6328

The Commissioner of Insurance, at a public hearing under Docket Number 2221 held 
at 9:00 a.m., May 9, 1996, in room 100 of the Texas Department of Insurance 
Building, 333 Guadalupe Street, Austin, Texas, adopted a form filing by the 
Texas Department of Health (Department) for a new surety bond form entitled 
"STAR Program Performance Bond (Bond). The Bond is a requirement by the 
Department for any licensed health maintenance organization (HMO) who wishes to 
participate in the Department's Lone STAR Health Initiative (STAR Program). The 
form was filed in the Chief Clerk's Office on April 11, 1996.
The STAR Program is subject to approval by the Secretary of the United States 
Department of Health and Human Services pursuant to the Social Security Act for 
the purpose of providing health care services for beneficiaries eligible for 
medical assistance under Title XIX of the Social Security Act. An HMO who is an 
approved Medicaid eligible provider may participate in the STAR Program by 
obtaining the Bond and entering into a written contract (Contract) with the 
Department.
The penalty and total aggregate of the Bond is $100,000. The Bond is 
conditioned, so that if the HMO fails to perform the obligations set forth in 
the Contract with the Department then the amount of the Bond, or any portion 
thereof will be paid to the Department within 30 days. The Bond may be canceled 
by either the Department or the surety by giving not less than 60 days notice. A 
new Bond must be obtained by the HMO for each renewal or extension of the 
Contract.
There is no standard premium rate for this new bond. Before an insurance company 
can use the new Bond form they must first file their proposed premium rate in 
accordance with the Texas Insurance Code, Article 5.15.
Notice of the revised surety bond form filing (Reference Number O-0496-14), was 
published in the April 19, 1996, issue of the Texas Register (21 TexReg 3432).
The Texas Department of Insurance has jurisdiction over this matter pursuant to 
the Insurance Code, Articles 5.13, 5.15 and 5.97.
The full text of the new surety bond form, as adopted by the Texas Department of 
Insurance is filed with the Chief Clerk under (Reference Number O-0496-14) and 
is incorporated by reference by Commissioner Order Number 96-0538.
This notification is made pursuant to the Insurance Code, Article 5.97, which 
exempts it from the requirements of the Administrative Procedure Act.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be within the agency's authority.
Issued in Austin, Texas, on May 15, 1996.
TRD-9606701
Alicia M. Fechtel
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: June 5, 1996
For further information, please call: (512) 463-6328

The Commissioner of Insurance, at a public hearing under Docket Number 2220 held 
at 9:00 a.m., May 9, 1996, in room 100 of the Texas Department of Insurance 
Building, 333 Guadalupe Street, Austin, Texas, adopted a form filing by the 
Texas Department of Insurance for a revised surety bond form entitled "Bond of 
Special Deputy Receiver, Form Number 1" (Bond). The Bond is a requirement of 
Article 21.28, Sec. 12 (a) of the Texas Insurance Code. The form was filed in 
the Chief Clerk's Office on April 15, 1996.
The Bond has been revised to more closely follow the requirements of the above 
referenced statute. Substantive revisions to the Bond are as follows: The entity 
to whom payment of the bond is made has been changed from the United States of 
America to the Receiver (Commissioner of Insurance). The Bond conditions have 
been revised to include that the Special Deputy Receiver make a proper 
accounting for all moneys and properties received oradministered in accordance 
with the statute and the applicable Special Deputy Receiver Agreement, as either 
may be amended from time to time. The cancellation provision of the bond has 
also been revised to provide notice to the Principal of the Bond as well as the 
Commissioner of Insurance and to clarify that the Surety's liability will 
continue during the 60-day cancellation period. Minor stylistic and grammatical 
changes have been made to the Bond.
There is no rate consequence to these revisions; thus the standard premium rate 
for the Bond remains unchanged. Companies who wish to use a premium rate other 
than the standard rate may file their own rate for prior approval pursuant to 
the Insurance Code, Article 5.15.
Notice of the revised surety bond form filing (Reference Number O-0496-13-I) was 
published in the April 19, 1996, issue of the Texas Register (21 TexReg 3431).
The Texas Department of Insurance has jurisdiction over this matter pursuant to 
the Insurance Code, Articles 5.13, 5.15 and 5.97.
The full text of the revised surety bond Form Number 1, as adopted by the Texas 
Department of Insurance is filed with the Chief Clerk under (Reference Number O-
0496-13-I) and is incorporated by reference by Commissioner Order Number 96-
0537.
The Texas Department of Insurance hereby certifies that the adopted form filing 
referenced herein has been reviewed by legal counsel and found to be within this 
agency's authority to adopt.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be within the agency's authority.
Issued in Austin, Texas, on May 15, 1996.
TRD-9606700
Alicia M. Fechtel
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: June 5, 1996
For further information, please call: (512) 463-6328

The Commissioner of Insurance at a hearing held under Docket Number 2209 on 
April 18, 1996, at 9:00 a.m. in Room 100 of the Texas Department of Insurance 
Building, 333 Guadalupe Street in Austin, Texas, approved an amended filing made 
by the staff of the Workers' Compensation Group of the Texas Department of 
Insurance pertaining to an amendment to Section I A of the Texas Experience 
Rating Plan of the Texas Basic Manual of Rules, Classifications and Experience 
Rating Plan of Workers' Compensation and Employers' Liability Insurance. The 
purpose of this amendment is to require insurance companies to furnish, free of 
charge, one copy of the workers' compensation experience modifier calculation to 
the producer of record within ten (10) working days of the modifier being 
calculated or received by the insurance company.
The Commissioner has jurisdiction of this matter pursuant to the Insurance Code, 
Article 5.60(b) and 5.96.
A copy of the petition containing the full text of the changes to Section I A of 
the Texas Experience Rating Plan of the Texas Basic Manual of Rules, 
Classifications and Experience Rating Plan for Workers' Compensation and 
Employers' Liability Insurance is available for review in the Office of the 
Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street Austin, 
Texas 78714-9104. For further information or to request copies of the petition, 
please contact Sylvia Gutierrez at (512) 463-6327, (Refer to Reference Number W-
029-05-I ).
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure Act.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on May 13, 1996.
TRD-9606649
Alicia M. Fechtel
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: June 5, 1996
For further information, please call: (512) 463-6327