The Texas Department of Insurance proposes an amendment to §25.9 relating to Texas Automobile Insurance Plan Association Financing Disclosure and Premium Finance Comparison Disclosure Form (form). The form is required to be used by all insurance premium finance companies subject to this chapter and the Insurance Code, Chapter 24. The form briefly explains payment options under installment and premium finance plans. Further, it compares the dollar amounts required for the down payment and monthly payments for both payment options. Current §25.9 adopts and incorporates the form by reference. Recent changes to the Texas Automobile Insurance Plan Association (TAIPA) Plan of Operation require a change to the form as the form now contains language that is no longer accurate. Recent changes to the Plan of Operation allow commercial automobile premiums to be financed. To reflect the recent changes to the TAIPA Plan of Operation, the proposed form deletes language that states that the installment plan is not available for commercial automobile policies. The Texas Department of Insurance has filed a copy of the proposed disclosure form with the Texas Register. Persons desiring copies of the form will be able to obtain them from the Premium Finance Licensing Unit, Mail Code 107-5a, Texas Department of Insurance, 333 Guadalupe, P.O. Box 149104, Austin, Texas, 78714-9104 and the department's website, www.tdi.state.tx.us .
Kim Stokes, senior associate commissioner, life, health and licensing, has determined that for each year of the first five years the proposed section will be in effect, there will be no fiscal impact to state and local governments as a result of the enforcement or administration of the rule. There will be no measurable effect on local employment or the local economy as a result of the proposal.
Ms. Stokes has also has determined that for each year of the first five years the section is in effect, the public benefits anticipated as a result of the proposed section will be increased availability and greater flexibility to consumers when choosing a payment option as the installment payment method will now be available to all risks assigned through TAIPA. There will be no probable economic cost to persons required to comply with the amendments to the section. As such, there is no anticipated difference in the cost of compliance between large, small, and micro businesses.
To be considered, written comments on the proposal must be submitted no later than 5:00 P.M. on August 27, 2001 to Lynda H. Nesenholtz, General Counsel and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P. O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comment must be simultaneously submitted to Matt Ray, Deputy Commissioner, Texas Department of Insurance, Mail Code 107-2A, P.O. Box 149104, Austin, Texas 78714-9104. Any request for a public hearing should be submitted separately to the Office of the Chief Clerk.
The amendment is proposed under Insurance Code Article 24.09 and §36.001. Article 24.09 authorizes the Commissioner of Insurance to adopt and enforce rules necessary to carry out the provisions of Chapter 24, Financing Insurance Premium. Section 36.001 authorizes the Commissioner to adopt rules for the conduct and execution of the powers of the department as authorized by statute.
The following articles are affected by this proposal: Insurance Code, Chapter 24
§25.9. Texas Automobile Insurance Plan Association Financing Disclosure and Premium Finance Comparison Disclosure Form.
(a) (No change.)
(b) This disclosure shall be made using the Premium Finance Comparison Disclosure Form (Disclosure Form), which the Department adopts and incorporates by reference. The Disclosure Form shall be provided to the consumer in both English and Spanish. The effective date of the Disclosure Form is
September 17, 2001 [
October 15, 1995]. This form is published by the Department and may be obtained from the Premium Finance Licensing Unit, Mail Code 107-5A, Texas Department of Insurance, 333 Guadalupe, P.O. Box 149104, Austin, Texas 78714-9104. Reproduction of this form is allowed.
(c) (No change.)