The Commissioner of Insurance, by Commissioner's Order No. 02-0573, has amended the Texas Automobile Rules and Rating Manual, Endorsements 578 (to be redesignated 578A) and 579 (to be redesignated 579A) in order to conform the definition of an underinsured motor vehicle to the definition in the Texas Personal Auto Policy. Endorsement 578, Section IV.C.4., subsections a and b; and Endorsement 579, Section IV.C.4., subsections a and b are amended to read as follows:
"a. is not enough to pay the full amount the covered person is legally entitled to recover as damages; or
b. has been reduced by the payment of claims to an amount which is not enough to pay the full amount the covered person is legally entitled to recover as damages."
The amendments were adopted to become effective August 13, 2002, which is 60 days after publication of the Commissioner's action in the Texas Register.
A copy of the Order is available on our web site at: http://www.tdi.state.tx.us/orders/co020573.html
Questions regarding this bulletin may be directed to Grover Corum, Manager, Automobile/Homeowners Division at 512-322-3430 or Grover.Corum@tdi.state.tx.us.
Marilyn Hamilton, Associate Commissioner
Property & Casualty Program MC 104-PC