Commissioner’s Bulletin # B-0013-00

The Commissioner of Insurance, under Commissioner´s Order No. 00-0073, Docket No. 2428, has adopted amendments to the Texas Personal Lines Manual (Manual) which provide an optional credit for Homeowners and Dwelling policies for stovetop fire suppression devices.

The adopted rules: (1) provide the amount of discount; (2) define a stovetop fire suppression device as a device or assembly of devices that is mounted to the vent hood over a residential stovetop cooking surface and that protects against one or more hazards through suppressing or extinguishing fires; (3) require that the suppression device or devices are installed correctly and functioning on covered property and have been approved by the State Fire Marshal; and (4) provide that verification of compliance with the stovetop fire suppression device or devices is subject to the individual insurer.

The adoption amends four (4) Manual rules:

1. In the Homeowners Section, Manual Rule VI-C, Optional Homeowners Credits, is amended to clarify the language concerning the application of the credits. The note to the above rule is amended to add an exception stating that the credit for stovetop suppression devices is a fixed credit and may not be reduced.
2. In the Homeowners Section, Manual Rule VI-C, Optional Homeowners Credits, is amended to add new item 8, Stovetop Fire Suppression Devices. The amount of credit for policies HO-A, HO-B, and HO-C is 2 percent. The amount of credit for policies HO-BT, HO-CT, HO-CON-B, and HO-CON-C is 6 percent.
3. In the Dwelling Section, Manual Rule VI-C, Optional Dwelling Credits, is amended to add an exception to the note stating that the credit for stovetop suppression devices is a fixed credit and may not be reduced.
4. In the Dwelling Section, Manual Rule VI-C, Optional Dwelling Credits, is amended to add new item 6b, Stovetop Fire Suppression Devices. The amount of credit for Texas Dwelling Policies is 9 percent.

The above rules are effective on March 1, 2000. Any questions regarding this bulletin should be directed to the Homeowners Section at 512-322-2266.

Copies of the adopted rules are attached to this bulletin.

David P. Durden
Associate Commissioner
Property and Casualty Division

DPD:GJ

Homeowners

Texas Personal Lines Manual - Homeowners

Section VI. Rating Rules - Item C. Optional Homeowners Credits, is amended as follows:

Section VI. Rating Rules - Item C. Optional Homeowners Credits, is amended to add a new item as follows:

Dwelling

Texas Personal Lines Manual - Dwelling

Section VI. Rating Rules - Item C. 6. Optional Dwelling Credits, is amended as follows:

6. Optional Dwelling Credits

The following credits may be applied to recognize special characteristics of a risk that is not fully reflected in the actual Fire and Lightning premium.

NOTE: The individual credits shown below are maximum. Companies may apply up to but not exceeding the maximum credit shown for each item.
Exception to Note: The credit shown for stovetop suppression devices is a fixed credit and may not be reduced by the companies.

Section VI. Rating Rules - Item C. 6. Optional Dwelling Credits, is amended to add a new item as follows:

b. Stovetop Fire Suppression Devices……………………………………….. 9%
This credit is a fixed credit and may not be reduced by the companies.

(1) Stovetop fire suppression devices means a device or assembly of devices that is mounted to the vent hood over a residential stovetop cooking surface and that protects against one or more hazards through suppressing or extinguishing fires.

(2) Suppression device or devices must be correctly installed and functioning on the covered property and been approved by the State Fire Marshal

(3) Verification of compliance with the stovetop fire suppression device or devices is subject to individual company.