B-0047-00

To: ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS WRITING AUTOMOBILE INSURANCE IN THE STATE OF TEXAS AND TO THEIR AGENTS AND REPRESENTATIVES AND THE PUBLIC GENERALLY

Re: Commissioner's Order No. 00-0886, adoption of amendments to the Texas Automobile Rules and Rating Manual to allow automobile floor plan coverage to be written optionally as provided by Rule 125 or as inland marine insurance.

The Commissioner of Insurance, by Commissioner's Order No. 00-0886, has adopted amendments to the Texas Automobile Rules and Rating Manual (the Manual), Rule 125, to clarify that automobile floor plan coverage may be written optionally as either automobile insurance or as inland marine insurance, which latter option is more fully described in recently amended 28 TAC §5.5002(5)(K). Manual Rule 125.D. is amended by adding the following provision:

A wholesale floor plan may also be written pursuant to 28 TAC §5.5002 entitled "Texas Definition of Inland Marine Insurance" as provided in paragraph (5)(K).

The amendments were adopted to become effective August 26, 2000, which is 15 days after publication of the Commissioner's action in the Texas Register.

Any questions regarding this bulletin should be directed to Grover Corum, Manager, Automobile/Homeowners Division at 512-322-3430.

Marilyn Hamilton
Deputy Commissioner
Personal And Commercial Lines Division