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 No. 2340 
scheduled for March 25, 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 (captioned "Second 
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 (Ref. No. A-0298-04-I) was filed on February 5, 
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 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 
Sylvia Gutierrez at (512) 463-6326; refer to (Ref. No. A-0298-04-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). 
TRD-9802006
Bernice Ross
Deputy Chief Clerk
Texas Department of Insurance
Filed: February 11, 1998

Proposed Action
The Commissioner of Insurance, at a public hearing under Docket No. 2341 
scheduled for March 25, 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 (captioned "Third 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 (Ref. No. A-0298-05-I) was filed on February 5, 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 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 
Sylvia Gutierrez at (512) 463-6326; refer to (Ref. No. A-0298-05-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). 
TRD-9802007
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: February 111998

ADOPTED
The Commissioner of Insurance, at a public hearing under Docket No. 2325 held at 
9:00 a.m., January 29, 1998 in Room 100 of the William P. Hobby Jr. State Office 
Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by 
Staff to the Texas Automobile Rules and Rating Manual (the Manual), Rule 
74.E.1., Credit for Young Driver Training. Staff's petition (Ref. No. A-1197-36-
I) was published in the November 28, 1997 issue of the Texas Register (22 TexReg 
11722). 
This order amends Manual Rule 74.E.1. regarding the 10% credit given for young 
driver training, commonly referred to as "driver education." New forms of 
certificates (including 964-D and 964-E, Driver Education Certificates) are 
added to those currently listed as satisfactory evidence of course completion.
Also in Rule 74.E.1., the standards for these courses and instructors set forth 
in subsections a, b, and c are deleted, as those standards are no longer 
appropriate because of statutory changes and rule changes by other agencies of 
the state. 
Senate Bill 964, passed by the 74th Texas Legislature in 1995 made numerous 
changes regarding driver education courses. One change allows the parent or 
legal guardian, hereafter referred to as "parent" to teach the course to his or 
her child or ward, rather than requiring the course to be taught by a certified 
instructor at a driver education school licensed by the Texas Education Agency 
(TEA) (including the Central Education Agency, the State Board of Education or 
the Commissioner of Education). Although Senate Bill 964 made this change by 
reciting the addition of Section 7A to Texas Civil Statutes, Article 6687b, that 
article was repealed during that same legislative session by adoption of the 
Transportation Code, of which Section 521.142 is the current applicable statute. 
That statute requires the Department of Public Safety (DPS) to administer 
parent-taught driver education, and DPS has adopted rules accomplishing that 
mission (37 TAC sec.sec. 18.21-18.24 and 18.31-18.33, all effective April 7, 
1997). 
The Transportation Code, Section 521.142 provides in regard to parent-taught 
driver education, "(d) Completion of a driver training course approved under 
this section has the same effect under this Act as completion of a driver 
training course approved by the Central Education Agency." Staff referred to 
advice by several members of the Texas Legislature that the legislative intent 
of this statutory provision is that parent-taught trainees are entitled to all 
privileges (such as insurance discounts) that are extended to driver education 
school trainees. 
Staff referred to many factors, in addition to the legislative intent as 
expressed by several legislators, that support extension of the insurance 
discount to parent-taught trainees. One factor is that DPS rules require the 
parent-teacher to use a DPS-approved course, which substantially meets or 
exceeds DPS's own model curriculum prescribed for parent-taught driver 
education, as well as the TEA "Driver Education Classroom and In-Car Instruction 
Curriculum Guide," which was initially developed for driver education schools. 
Furthermore, the parent-taught trainee must pass DPS tests for vision, road 
signs, and road rules before an instruction permit (restricted driver's license) 
is issued. Staff explained the curriculum for parent-taught trainees under DPS 
rules must contain a minimum of 14 hours of in-car training, which is the same 
total required under TEA rules for school-taught trainees, though there are 
certain differences in the details of these requirements. Also, DPS rules for 
parents, like TEA rules for schools, require at least 32 hours of classroom 
instruction.
Furthermore, Staff was informed that parent-taught trainees generally receive 
much more training than these minimum requirements. Staff informally reviewed a 
privately developed course that has received DPS approval for parent-taught 
driver education, which requires a minimum of 70 hours behind-the-wheel 
instruction and 45 hours of classroom instruction. 
Staff also reviewed a study initiated by Advanced Traffic Technologies, Inc. 
concerning the effectiveness of parent-taught driver education. The study found 
that the average behind-the-wheel test score for students completing driver 
education school courses is 87 (out of 100 possible) compared to 94 for parent-
taught students. The study also found that within the first 18 months after 
licensing, parent-taught students are involved in severe crashes less frequently 
than school-taught students. A severe crash is defined in the study to be one 
causing damage exceeding $3,000.00 and/or injuries resulting in hospitalization. 
The information outlined in Staff's petition warrants the extension of the 10% 
credit, currently given to school-taught trainees, to parent-taught trainees. 
The standards for driver education courses and instructors set forth in 
subsections, a, b, and c, of Rule 74.E.1. need to be deleted because they do not 
allow the credit for parent-taught driver training. Because all driver education 
courses and instructors (including parents) are regulated by other state 
agencies, the Texas Department of Insurance does not need to specify course 
standards nor to require certified instructors. 
Another result of Senate Bill 964 has been the development by the Texas 
Education Agency of two new forms, (pursuant to Texas Civil Statutes, Article 
4413 (29c), Section 9A) issued as evidence of completion of driver education 
courses, namely, 964-D and 964-E, Driver Education Certificates. Those new form 
designations need to be added to the current list of forms in Manual Rule 
74.E.1. that serve as satisfactory evidence of course completion for purposes of 
the 10% insurance credit. The new language of Rule 74.E.1. will allow the use of 
any other form approved for this purpose by the Texas Education Agency. 
The amendments as adopted by the Commissioner of Insurance are shown in an 
exhibit on file with the Chief Clerk under Ref. No. A-1197-36-I, which is 
incorporated by reference into Commissioner's Order No. 98-0162. 
The Commissioner of Insurance has jurisdiction over this matter pursuant to the 
Insurance Code, Articles 5.10, 5.96, 5.98, and 5.101. 
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). 
Consistent with the Insurance Code, Article 5.96(h), the Department will notify 
all insurers writing automobile insurance of this adoption by letter summarizing 
the Commissioner's action. 
This agency hereby certifies that the amendments as adopted have been reviewed 
by legal counsel and found to be a valid exercise of the agency's authority.
Filed with the Office of the Secretary of State on February 11, 1998.
TRD-9801982
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: March 9, 1998
Proposal publication date: November 28, 1997
For further information, please call: (512) 463-6327

ADOPTED
The Commissioner of Insurance, at a public hearing under Docket No. 2326 held at 
9:00 a.m., January 29, 1998 in Room 100 of the William P. Hobby Jr. State Office 
Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by 
Staff to the Texas Automobile Rules and Rating Manual (the Manual), and the 
Texas Standard Provisions for Automobile Policies (the Standard Provisions), 
through changes to Amendatory Endorsements 593C and TE 00 40. Staff's petition 
(Ref. No. A-1197-37-I) was published in the November 28, 1997 issue of the Texas 
Register (22 TexReg 11722). 
This order amends Automobile Policy Endorsements 593C (applicable to the 
Personal Auto Policy) and TE 00 40 (applicable to the Business Auto, Garage and 
Truckers Coverage Forms). Endorsement 593C will become 593D and Endorsement TE 
00 40 will become TE 00 40A. The physical damage coverage limit of liability is 
amended to allow an insurer not to apply the deductible, should there be one, 
when damage to glass is repaired rather than replaced. The new wording requires 
that the insurer and insured must mutually agree to the settlement option, if it 
is to be used. 
It is noted that an insurer's consent not to apply the deductible for glass 
repair becomes inapplicable if the glass is later replaced at the insurer's cost 
as a result of the same occurrence. For example, an insured may not be satisfied 
with the repair job, and may then possibly seek replacement. 
The practice of not applying or waiving the deductible began in the early 
1980's. On October 24, 1984, the Attorney General of Texas issued Opinion No. 
JM-218 concerning the legality of the insurer's practice of waiving the 
deductible when the insured agrees to have the windshield repaired rather than 
replaced. Staff noted that one concern expressed in the attorney general opinion 
was whether the practice of waiving the comprehensive deductible after the loss 
could be considered a contract provision not written into an approved policy 
form, or not otherwise approved by the Board. Staff asserted that one or more 
insurers have recently made a decision to discontinue the practice of offering 
the option of repairing glass damage due to a concern that the practice may 
constitute a violation of the Insurance Code, Article 5.06. Staff asserted that 
any concerns regarding the practice of allowing an insurer not to apply a 
deductible when glass damage is repaired can be addressed by the approval of an 
amended endorsement that allows the insurer and insured to agree to the waiver 
of deductible and the glass repair. The new language accomplishes this purpose 
by providing that upon mutual agreement between the insurer and insured, the 
insurer will not apply the applicable deductible for a glass loss if the glass 
is repaired rather than replaced. Requiring mutual agreement between the insurer 
and insured assures that the glass repair option will be utilized only when 
feasible and when it is acceptable to an insured. 
Staff also asserted that the practice of not applying the deductible when glass 
is repaired rather than replaced is good public policy. The insured benefits by 
not having to pay the deductible and the insurer benefits by holding down the 
cost of losses. The general insuring public benefits by the lower cost of 
losses, which holds down physical damage insurance rates. 
The amendments are enhancements without additional premium charge. Under policy 
liberalization clauses the changes will become effective upon the effective date 
of the amendments (see last paragraph of this order), without policies or 
endorsements having to use the new language. However, a policy or renewal that 
becomes effective on or after June 1, 1998 must have the revised endorsement 
attached, or else must have the new language incorporated into the policy 
itself. 
The amendments as adopted by the Commissioner of Insurance are shown in exhibits 
on file with the Chief Clerk under Ref. No. A-1197-37-I, which are incorporated 
by reference into Commissioner's Order No. 98-0161. 
The Commissioner of Insurance has jurisdiction over this matter pursuant to the 
Insurance Code, Articles 5.06, 5.10, 5.96, and 5.98. 
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). 
Consistent with the Insurance Code, Article 5.96(h), the Department will notify 
all insurers writing automobile insurance of this adoption by letter summarizing 
the Commissioner's action. 
This agency hereby certifies that the amendments as adopted have been reviewed 
by legal counsel and found to be a valid exercise of the agency's authority.
Filed with the Office of the Secretary of State on February 11, 1998.
TRD-9801981
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: March 9, 1998
Proposal publication date: November 28, 1997
For further information, please call: (512) 463-6327

ADOPTED
The Commissioner of Insurance, at a public hearing under Docket No. 2327 held at 
9:00 a.m., January 29, 1998 in Room 100 of the William P. Hobby Jr. State Office 
Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by 
Staff to the Texas Automobile Rules and Rating Manual (the Manual).
These amendments to Manual Rule 74 set the credit at 5% for the optional Youth 
Group Member Discount, under the Insurance Code, Article 5.03-5, enacted through 
House Bill 1498 of the 75th Texas Legislature. Staff's petition (Ref. No. A-
1197-38-I) was published in the November 28, 1997 issue of the Texas Register 
(22 TexReg 11721). 
The Insurance Code, Article 5.03-5 provides an insurer may grant a discount for 
certain automobile insurance premiums for members of certain youth groups if 
necessary qualifications are met. Article 5.03-5 provides the "commissioner by 
rule shall set the amount of the discount applicable under this article...." 
This new article applies to policies "delivered, issued for delivery, or renewed 
on or after January 1, 1998." 
The Insurance Code, Article 5.03-5 defines "Youth group" as a nonprofit 
organization that is chartered as a national or statewide organization that is 
run exclusively for youth recreational or educational purposes. The group must 
have, as part of its program, components relating to prevention of drug abuse, 
character development, citizenship training, and physical and mental fitness. 
The group must have been in existence for at least 10 years, and must have a 
membership of which at least 65 percent are younger than age 22. In order for an 
applicant to be eligible, among other requirements and restrictions, he or she 
must: 
(1) be licensed to drive in this state; 
(2) be a member of a youth group, including an adult leader, board member, or 
officer of the group; 
(3) be younger than 22 years of age or an adult leader, board member, or officer 
of the group; 
(4) have held a driver's license for at least three years on the date the 
application is filed; 
(5) have not, during the three years preceding the date of the application, been 
convicted of a violation of a traffic safety regulation that involves a moving 
vehicle; and
(6) have not, during the three years preceding the date of the application, been 
found at fault in a motor vehicle accident. 
TDI's Technical Analysis Division recommended that a credit of 5% be established 
as the optional discount under Manual Rule 74.J., and that is the credit hereby 
adopted. The amount of credit is based on judgment, since no data concerning 
likely experience is known to exist. Once credible actual experience has been 
gathered, Staff will propose any amendments to the amount of credit as deemed 
necessary. 
The amendments as adopted by the Commissioner of Insurance are shown in an 
exhibit on file with the Chief Clerk under Ref. No. A-1197-38-I, which is 
incorporated by reference into Commissioner's Order No. 98-0164. 
The Commissioner of Insurance has jurisdiction over this matter pursuant to the 
Insurance Code, Articles 5.10, 5.96, 5.98, and 5.101. 
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). 
Consistent with the Insurance Code, Article 5.96(h), the Department will notify 
all insurers writing automobile insurance of this adoption by letter summarizing 
the Commissioner's action. 
This agency hereby certifies that the amendments as adopted have been reviewed 
by legal counsel and found to be a valid exercise of the agency's authority.
Filed with the Office of the Secretary of State on February 11, 1998.
TRD-9801983
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: March 9, 1998
Proposal publication date: November 28, 1997
For further information, please call: (512) 463-6327

ADOPTED
The Commissioner of Insurance, at a public hearing under Docket No. 2332 held at 
9:00 a.m., January 29, 1998 in Room 100 of the William P. Hobby Jr. State Office 
Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by 
Staff to the Texas Automobile Rules and Rating Manual (the Manual). The 
amendments consist of new and/or adjusted 1998 model Private Passenger 
Automobile Physical Damage Rating Symbols and revised identification 
information. Staff's petition (Ref. No. A-1297-39-I) was published in the 
December 19, 1997 issue of the Texas Register (22 TexReg 12557).
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 specified model year of the listed vehicles. 
The amendments as adopted by the Commissioner of Insurance are shown in an 
exhibit on file with the Chief Clerk under Ref. No. A-1297-39-I, which is 
incorporated by reference into Commissioner's Order No. 98-0163. 
The Commissioner of Insurance has jurisdiction over this matter pursuant to the 
Insurance Code, Articles 5.10, 5.96, 5.98, and 5.101. 
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). 
Consistent with the Insurance Code, Article 5.96(h), the Department will notify 
all insurers writing automobile insurance of this adoption by letter summarizing 
the Commissioner's action. 
This agency hereby certifies that the amendments as adopted have been reviewed 
by legal counsel and found to be a valid exercise of the agency's authority.
Filed with the Office of the Secretary of State on February 11, 1998.
TRD-9801984
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: April 21, 1998
Proposal publication date: November 28, 1997
For further information, please call: (512) 463-6327