The purpose of this bulletin is to notify insurers of the impact of House Bill 1541 (HB 1541), as it relates to the Automobile Burglary and Theft Prevention Authority (ABTPA) fee in Section 10, Article 4413(37), Revised Statutes. HB 1541 amended Section 10, Article 4413(37), Revised Statutes by increasing the fee from $1.00 to $2.00 per motor vehicle year. The increase is effective for insurance policies issued, delivered, or renewed on or after September 1, 2011.
The fee may, but is not required to be recouped from policyholders. An insurer who wishes to recoup the $2.00 per motor vehicle year fee must first file the fee in a rate filing in compliance with Chapter 2251, Texas Insurance Code and Title 28, Texas Administrative Code (28 TAC) §5.9332. 28 TAC §5.205, which authorizes each insurer to recoup this fee from the policyholder, will be updated to reflect the change in amount as well as the reference to the ABTPA. In 2007, HB 1887, 80th Legislature, amended Article 4413(37), Revised Statutes, by changing the Automobile Theft Prevention Authority to the Automobile Burglary and Theft Prevention Authority.
In addition to making the required rate filing, insurers that have previously filed and received approval for declaration pages, endorsements, or other forms that specified the $1.00 per motor vehicle year fee will need to file and receive approval for the revised forms before they are used.
28 TAC §5.205 currently specifies two options for delivery of the required notice language regarding recoupment of the ABTPA fee. The manner of delivery of the notice determines the required option. As §5.205 is being revised to reflect the changes mandated by HB 1541, the notice language is expected to change. For forms requiring approval, the revised §5.205 is expected to include the following notice language:
(1) NOTICE: A fee of ____ is payable in addition to the premium due under this policy. This fee reimburses the insurer, as permitted by 28 TAC §5.205, for the $2.00 fee per motor vehicle year required to be paid to the Automobile Burglary and Theft Prevention Authority under Texas Civil Statutes, Article 4413(37), §10, which was effective on June 6, 1991, and revised effective September 1, 2011.
(2) NOTICE: The Automobile Burglary and Theft Prevention Authority fee is payable in addition to the premium due under this policy. This fee reimburses the insurer, as permitted by 28 TAC §5.205, for the $2.00 fee per motor vehicle year required to be paid to the Automobile Burglary and Theft Prevention Authority under Texas Civil Statutes, Article 4413(37), §10, which was effective on June 6, 1991, and revised effective September 1, 2011.
Questions regarding rate filings should be directed to the Property and Casualty Actuarial Division at 512-475-3017 or PCActuarial@tdi.state.tx.us. Questions regarding form filings should be directed to the Property and Casualty Personal and Commercial Lines Division at 512-322-2266 or AutoHome@tdi.state.tx.us
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Marilyn Hamilton
Associate Commissioner
Property & Casualty Division