The Commissioner of Insurance, by Commissioner´s Order No. 00-0085, Docket No. 2426, has adopted amendments to the Texas Automobile Rules and Rating Manual (the Manual), Rule 74, including Section E.3., drug and alcohol driving awareness training credits, and also Rules 77 and 79. The amendments' purpose is to implement the provisions of the Insurance Code, Article 5.03-4, adopted by the 76th Legislature in House Bill 3757.
These rule changes make the drug and alcohol driving awareness training credits applicable to all autos afforded personal auto coverage, including miscellaneous type vehicles. The amount of the credit remains at 5% for each auto principally operated by the course completer. References to the Texas A&M University, Safety Education Program have been replaced by restricting the credit to persons who complete programs that are regulated and approved by the Texas Education Agency (TEA) under the Texas Driver and Traffic Safety Education Act, Texas Civil Statutes, Article 4413(29c). Subject to exception below, the credit will apply for a three year period following successful completion of the course.
If a customary operator is convicted of DWI or a similar offense, then any person under the policy (unless the convicted person is excluded from the policy) will be ineligible for the credit for seven years from the conviction date. If the convicted operator takes a course within three years of expiration of the seven year period mentioned above, the operator can begin receiving the credit upon expiration of the seven year period, and the credit will continue until the remaining portion of the three years has expired. For example, if a customary operator takes the course five years after the date of conviction, then he or she will receive the credit for one year, beginning two years from the date of completion of the course.
Revised Rule 74 provides that a policy receiving the credit under rule 74.E.3., as it existed immediately prior to January 1, 2000, may continue to receive the credit for the remainder of the 36 month period that extends beyond January 1, 2000, subject to the provisions of the rule.
The amendments were adopted to become effective on the 15th day after publication in the Texas Register, resulting in an effective date February 20, 2000.
Questions regarding this bulletin should be directed to Grover Corum at 512-322-3471.
David P. Durden
Associate Commissioner
Property & Casualty Program