The Commissioner of Insurance, by Commissioner's Order No. 96-0741, Docket No. 2223, has adopted amendments to the Texas Automobile Rules and Rating Manual (the Manual). The amendments are to Manual Rule 135 and Endorsements 4R. and TE 20 17, all pertaining to exclusion of the perils of windstorm, hurricane, hail, and flood from policies covering mobile homes. An explanation is made below, and the amendments are shown in the attachments to this letter.
Endorsement 4R. (to be redesignated 4R-1) for the Mobilowners Policy, and Endorsement TE 20 17 (to be redesignated TE 20 17A) for the Business Auto, Garage, or Truckers Coverage Form were adopted for purposes explained in Commissioner's Order No. 95-1108, dated October 25, 1995. Each endorsement provides that it may be attached only to policies covering property located in 14 specified counties, which were then the only designated catastrophe areas listed in the Texas Catastrophe Property Insurance Association Manual. Additional territory is now being so designated, so the above endorsements are amended to allow their attachment "to policies covering property located in the designated catastrophe areas as provided for in the Texas Catastrophe Property Insurance Association Manual." Manual Rule 135, Sections I. 10 and II.J also are amended to conform to the language of the endorsements in this regard.
An additional amendment is made to Endorsement 4R. to preclude the possibility that this endorsement might be construed to expand theft coverage beyond that provided by the basic Mobilowners Policy. This proposed amendment consists of the addition of the following language after the words "attempted theft": "if such loss would otherwise be covered by the policy."
The amendments were adopted to become effective August 1, 1996.
Lyndon Anderson
Associate Commissioner
Property & Casualty Group
A copy of the attachment may be obtained by calling the Chief Clerk's office at 512-463-6326.