The Commissioner of Insurance, by Commissioner´s Order No. 98-0161, Docket No. 2326, has amended the Texas Automobile Rules and Rating Manual and the Texas Standard Provisions for Automobile Policies, 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.
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 letter), 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 were adopted to become effective March 9, 1998, which is the 15 th day after publication of the Commissioner´s action in the Texas Register.
David P. Durden
Deputy Commissioner
Property and Casualty Insurance Lines