TEXAS DEPARTMENT OF INSURANCENotification Pursuant to the Insurance Code, 
Chapter 5, Subchapter LAs 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 2332 
scheduled for January 29, 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 staff petition. Staff's petition seeks amendment of the 
Texas Automobile Rules and Rating Manual (the Manual), to adopt new and/or 
adjusted 1998 model Private Passenger Automobile Physical Damage Rating Symbols 
and revised identification information. Staff's petition (Reference Number A-
1297-39-I) was filed on December 3, 1997. 
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 1998 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 (Reference Number A-1297-39-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, Property and Casualty Insurance Lines, 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). 
Issued in Austin, Texas, on December 8, 1997.
TRD-9716594
Lynda H. Nesenholtz
Assistant General Counsel
Texas Department of Insurance
For further information, please call: (512) 463-6327

ADOPTION
TEXAS DEPARTMENT OF INSURANCE EXEMPT FILING NOTIFICATION PURSUANT TO THE 
INSURANCE CODE CHAPTER 5, SUBCHAPTER L, ARTICLE 5.96 
The Commissioner of Insurance ("Commissioner") at a public hearing under Docket 
Number 2313 on December 3, 1997, held at 10:00 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 
("Residential Plan") and to the Texas Commercial Lines Statistical Plan 
("Commercial Plan") as proposed by the staff of the Texas Department of 
Insurance ("TDI'). The amendments are necessary to implement S.B. 1499 passed by 
the 75th Legislature which amended the Texas Insurance Code Article 5.13-2 to 
include Farm and Ranch and Farm and Ranchowners coverages in the commercial 
lines of insurance. Staff's petition (Reference P-1097-33-I) proposing the 
amendment was filed with the TDI Chief Clerk on October 14, 1997, and notice of 
the filing was published in the October 24, 1997, issue of the Texas Register 
(22 TexReg 10520). 
The staff proposed the amendment of the Texas Statistical Plan for Residential 
Risks ("Residential Plan") to delete the Farm and Ranch ("FR") and Farm and 
Ranch Owners ("FRO") reporting provisions from the Residential Plan and the 
amendment of the Texas Commercial Lines Statistical Plan ("Commercial Plan") to 
adopt two new chapters relating to FR and FRO reporting. The adopted changes are 
necessary in order to comply with the 75th Legislature's passage of S.B. 1499, 
which amended the Texas Insurance Code Article 5.13-2 to include FR and FRO 
policies as commercial lines insurance policies. The adopted amendments also 
include the incorporation of minor changes to the statistical plans for 
consistency with the existing procedure. 
One set of comments was received concerning the need to further amend the 
Commercial Plan to support new programs concerning the FR and FRO policies. In 
addition, the commenter expressed concern that a different statistical agent 
from the commercial lines statistical agent would collect FR and FRO data. The 
department agrees that the Commercial Plan should be further amended and is 
committed to proposing the necessary amendments in the future. The department 
also recognizes that once the Commercial Plan is further amended, it may be 
appropriate to conduct a competitive process to select a statistical agent for 
the FR and FRO, based on the specifications set out in the further amendments. 
The Commissioner adopted all of the amendments described herein at the December 
3, 1997 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 fire and allied lines of insurance. Article 21.69 
authorizes the Commissioner to contract with or designate a qualified 
organization to serve as a statistical agent to gather data from reporting 
insurers under a statistical plan promulgated by the Commissioner. Article 21.69 
also authorizes the Commissioner 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 Reference Number P-1097-33-I and are incorporated by reference by 
Commissioner's Order 97-1223. 
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). 
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. 
Issued in Austin, Texas, on December 8, 1997.
TRD-9716423
Lynda H. Nesenholtz
Assistant General Counsel
Texas Department of Insurance
Effective date: January 5, 1998
Proposal publication date: October 24, 1997
For further information, please call: (512) 463-6327