At a hearing held November 19, 1996, I adopted a 10% credit for the Academic Achievement Discount. The Academic Achievement Discount became effective February 1, 1997. The discount is an optional discount available under Rule 74.I., of the Texas Automobile Rules and Rating Manual, for individuals who have a "B" average or better or a 3.0 average or better on a 4.0 scale. To be eligible for the discount, the designated operator of the vehicle must be licensed to drive in Texas; under the age of 25 and classified as a youthful driver under the Texas Department of Insurance classification plan; and enrolled as a full time student in the junior or senior year of high school or academic courses in an institution of higher learning.
The purpose of this bulletin is to encourage insurers to offer the Academic Achievement Discount to eligible policyholders in Texas. I believe that the discount provides another incentive for students to make or continue making good grades and it gives insurers a statistically justified marketing tool to attract and reward better, lower risk drivers. Although the discount is optional, I encourage each company to adopt the Academic Achievement Discount prescribed by Rule 74.I. of the Texas Automobile Rules and Rating Manual. To offer the discount in Texas, an insurer must file a notice with the Texas Department of Insurance indicating its intent to give the discount. Enclosed for further consideration by individual insurers is a copy of Rule 74 I of the Texas Automobile Rules and Rating Manual and a copy of Article 5.03-3 of the Texas Insurance Code which created the Academic Achievement Discount.
Questions regarding this discount should be directed to George Russell, Manager, Personal Lines, at 512-305-7468. I look forward to insurers taking advantage of this opportunity to give good students the premium discount they deserve.
Sincerely,
Elton Bomer
Commissioner Of Insurance