The Commissioner of Insurance, by Commissioner's Order No. 02-1279, has amended the Texas Automobile Rules and Rating Manual (the Manual) by adding a new section K to Rule 74 to allow an insurer the option of implementing a discount up to 10% on a personal auto policy if a companion policy is issued in the same company or company group. A life or health insurance policy shall not qualify as a companion policy, but an insurer offering the discount shall otherwise specify in its filing what constitutes a companion policy, as well as the amount of the discount.
If an insurer elects to implement the discount, the discount must apply to bodily injury/property damage liability, personal injury protection/medical payments, collision, comprehensive, and specified causes of loss coverages. The discount must be applied uniformly to the applicable coverages.
Any election to give this discount must be filed with the Texas Department of Insurance (Department) prior to the effective date of the discount. If an insurer chooses to withdraw this discount, the insurer must give written notice to the Department prior to such withdrawal.
The amendments were adopted to become effective January 4, 2003, which is 15 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/co021279.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