TEXAS DEPARTMENT OF INSURANCE Notification 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 ADOPTED ACTIONS The Commissioner of Insurance, at a public hearing under Docket Number 2355 held at 10:00 a.m., June 18, 1998 in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street in Austin, Texas, adopted an amendment proposed by the Texas Insurance Organization (TIO) to the Texas Automobile Rules and Rating Manual (the Manual), Rule 74, to clarify rating procedures for policies insuring certain youthful operators. TIO's petition (Reference Number A-0298-07) was published in the May 15, 1998 issue of the Texas Register (23 TexReg 4925). Manual Rule 74.A.3. currently classifies as 2D or 2DF an unmarried female under age 21 only if there is no male operator under 25 years of age. The amendment deletes the condition, "and there is no male operator under 25 years of age." This order is based upon the rationale set forth in TIO's petition as follows: There is presently an inconsistency in Rule 74 regarding the rating of vehicles when there are "youthful operators." The inconsistency arises in the application of Section C.5.b., which requires that, the company charge the highest rate equal to the number of autos that are principally operated by youthful operators. It has been the case until recently that a class 2.A. or 2.C. (both male) has always been at higher rates than class 2.D. (female). However, in recent years and in some territories the 2.D. class rate is higher than the 2.A. or 2.C. class. Under sec.A.3. of Rule 74 the 2.D. class can only be assigned if there is no male operator under 25 years of age. To illustrate the problem by example: assume an insuring situation where there are two parents, a son age 16 and a daughter age 17 with two autos in territory 01. The children use the mother's car when using a vehicle. Section C.5.b. requires that the highest rate equal to the number of autos principally operated by youthful operators be used. In this example it would be the 2.D. class. However, the 2.D. class could not be assigned because of sec.A.3. By eliminating the condition "and there is no male operator under 25 years of age" this conflict can be resolved. The amendment as adopted by the Commissioner of Insurance is shown in an exhibit on file with the Chief Clerk under Reference Number A-0298-07, which is incorporated by reference into Commissioner's Order Number 98-0737. 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. IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the Manual is amended as described herein, and the amendment is adopted to become effective on September 1, 1998. This agency hereby certifies that the amendment as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. TRD-9810140 Lynda H. Nesenholtz General Counsel and Chief Clerk Texas Department of Insurance Filed: June 25, 1998 The Commissioner of Insurance, at a public hearing under Docket Number 2357 held at 10:00 a.m., June 18, 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 1997 and 1998 model Private Passenger Automobile Physical Damage Rating Symbols and revised identification information. Staff's petition (Reference Number A-0598-11-I) was published in the May 15, 1998 issue of the Texas Register (23 TexReg 4926). 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 1997 and 1998 model years of the listed vehicles. The amendments as adopted by the Commissioner of Insurance are shown in exhibits on file with the Chief Clerk under Reference Number A-0598-11-I, which is incorporated by reference into Commissioner's Order Number 98-0738. 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. IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the Manual is amended as described herein, and the amendments are adopted to become effective on September 1, 1998. 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. TRD-9810139 Lynda H. Nesenholtz General Counsel and Chief Clerk Texas Department of Insurance Filed: June 25, 1998 The Commissioner of Insurance, at a public hearing under Docket Number 2358 held at 10:00 a.m., June 18, 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 and 1999 model Private Passenger Automobile Physical Damage Rating Symbols and revised identification information. Staff's petition (Reference Number A-0598-12-I) was published in the May 15, 1998 issue of the Texas Register (23 TexReg 4926). 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 1998 and 1999 model years of the listed vehicles. The amendments as adopted by the Commissioner of Insurance are shown in exhibits on file with the Chief Clerk under Reference Number A-0598-12-I, which is incorporated by reference into Commissioner's Order Number 98-0739. 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. IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the Manual is amended as described herein, and the amendments are adopted to become effective on September 1, 1998. 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. TRD-9810138 Lynda H. Nesenholtz General Counsel and Chief Clerk Texas Department of Insurance Filed: June 25, 1998