IMPORTANT NOTICE
The Commissioner of Insurance, under Commissioner's Order No. 98-0794 dated July 6, 1998, adopted amendments to 28 TAC §5.5002(5)(Q), to be effective January 1, 1999. These amendments to the Department's rules on inland marine insurance provide that credit property insurance coverage resulting from an open or closed end consumer transaction is a class of inland marine insurance for which rules, rates, and forms must be filed with the Texas Department of Insurance for approval. All property and casualty insurance companies were informed of these amendments by bulletin on October 8, 1998 ( Bulletin No. B-0072-98), which advised them of the rule's filing deadline. A follow-up notice was sent December 18, 1998 ( Commissioner's Bulletin No. B-0088-98).
Insurers who are subject to the filing requirements of Article 5.53, Texas Insurance Code, and are currently writing credit property insurance without having made the appropriate filings with the Department are in violation of 28 TAC §5.5002 and Article 5.53 and are subject to disciplinary action.
Insurers who have submitted rate and form filings for approval must adjust policies issued on and after January 1, 1999 to reflect rates approved by the Commissioner regardless of the effective date of the approved filing.
Questions regarding this bulletin and/or filing requirements should be addressed to:
David Nardecchia, Manager
Commercial Property/Casualty Division MC104-PC
Texas Department of Insurance
P. O. Box 149094
Austin, TX 78714-9094
512-305-7544
DavidNardecchia@tdi.state.tx.us
Sincerely,
Marilyn Hamilton, Deputy Commissioner
Commercial Property/Casualty Division 104-PC