The Commissioner of Insurance, under Commissioner´s Order No. 00-0777, has adopted amendments to the Texas Personal Lines Manual (Manual) which will provide a second category for an optional credit on Homeowners and Dwelling policies for stovetop fire suppression devices.
The amended rules: (1) provide for a Category 1 listing for the current stovetop fire suppression credits; (2) provide a second category for the amount of credits for stovetop fire suppression devices; and (3) require the suppression device or devices to have been approved by the State Fire Marshal in accordance with 28 TAC §§34.1001 - 34.1004.
The adoption amends two (2) Manual rules:
- In the Homeowners Section, Manual Rule VI-C, Optional Homeowners Credits, (8) Stovetop Fire Suppression Devices, is amended to provide that the existing credits are applicable as Category 1 and to establish a second category of optional credit for stovetop fire suppression devices. The amount of credit applicable as Category 2 credits for policies HO-A, HO-B, and HO-C is 1.5 percent. The amount of credit applicable as Category 2 credits for policies HO-BT, HO-CT, HO-CON-B, and HO-CON-C is 5 percent;
- In the Dwelling Section, Manual Rule VI-C, 6. Optional Dwelling Credits, b. Stovetop Fire Suppression Devices, is amended to provide that the existing credits are applicable as Category 1 and to establish a second category of optional credit for stovetop fire suppression devices. The amount of credit applicable as Category 2 credits for Texas Dwelling Policies is 7 percent.
The amendments to both the Homeowners and Dwelling Section rules further provide that the credits are only applicable to devices in use on or after January 1, 2000, and include some minor editorial changes.
The adopted rules are effective on August 1, 2000. Questions regarding this bulletin should be directed to the Homeowners Section at 512-322-2266.
Copies of the amended Manual rules are attached to this bulletin for your information.
Marilyn Hamilton
Deputy Commissioner
Personal and Commercial Lines Division, MC 104-PC
Homeowners
Texas Personal Lines Manual - Homeowners
Section VI. Rating Rules - Item C. Optional Homeowners Credits, is amended as follows:
(8) Stovetop Fire Suppression Devices*
Category 1
HO-A, HO-B, and HO-C............................................................2%
HO-BT, HO-CT, HO-CON-B, and HO-CON-C.......................6%
Category 2
HO-A, HO-B, and HO-C...........................................................1.5%
HO-BT, HO-CT, HO-CON-B, and HO-CON-C.......................5%
*Only applicable to those devices in use on or after January 1, 2000.
These credits are fixed credits and may not be reduced by the companies.
- 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.
- Suppression device or devices must be correctly installed and functioning on the covered property and have been approved by the State Fire Marshal in accordance with 28 TAC §§34.1001 - 34.1004.
- Verification of compliance with the stovetop fire suppression device or devices is subject to each individual insurance company.
Dwelling
Texas Personal Lines Manual - Dwelling
Section VI. Rating Rules - Item C. 6. Optional Dwelling Credits, is amended as follows:
b. Stovetop Fire Suppression Devices*
Category 1..............................................9%
Category 2..............................................7%
* Only applicable to those devices in use on or after January 1, 2000.
These credits are fixed credits and may not be reduced by the companies.
- 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.
- Suppression device or devices must be correctly installed and functioning on the covered property and have been approved by the State Fire Marshal in accordance with 28 TAC §§34.1001 - 34.1004.
- Verification of compliance with the stovetop fire suppression device or devices is subject to each individual insurance company.