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Commissioner’s Bulletin # B-0002-05

January 18, 2005

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. 05-0006, ADOPTION OF AMENDMENTS TO THE TEXAS AUTOMOBILE RULES AND RATING MANUAL, RULE 141, RENTAL CAR COMPANIES.

The Commissioner of Insurance by Commissioner's Order No. 05-0006, has amended the Texas Automobile Rules and Rating Manual, Rule 141, Rental Car Companies. Manual Rule 141 Subsection A, "Eligibility" is amended to restate that this rule applies to automobile rental liability insurance that is issued on the Texas Automobile Rental Liability Policy and the Texas Automobile Rental Liability Excess Policy. Subsection E, "Required Disclosures," is also amended to revise the language that informs a prospective buyer of rental liability insurance in a rental car transaction that he or she may already have an insurance policy that duplicates the coverage that would be provided by an automobile rental liability insurance policy. Subsection E is revised to delete the portion of the disclosure which states, "Your Texas automobile policy provides coverage for your liability while renting a rental vehicle. Automobile policies issued in other states or countries may also duplicate this coverage." The deleted language is replaced with "Your personal automobile insurance policy may provide coverage for your liability while operating a rental vehicle."

The amendments were adopted to become effective January 29, 2005, which is 15 days after publication of the Commissioner's action in the Texas Register.

The Commissioner's Order may be accessed on our web site as follows:
http://www.tdi.state.tx.us/commish/rules/0105-059.html

Questions regarding this bulletin may be directed to Grover Corum, Manager, Personal Lines Division at 512-322-3430 or Grover.Corum@tdi.state.tx.us.

Marilyn Hamilton, Associate Commissioner
Property & Casualty Program MC 104-PC






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