Notice is given that the Commissioner of Insurance will consider a petition filed by the staff of the Texas Department of Insurance (Staff) to amend the Texas Statistical Plan for Residential Risks. The proposed changes are necessary in order to collect experience that will be used to analyze and track the use of recently approved residential property policy forms. Staff´s petition (Ref. P-0702-30-I) was filed on July 31, 2002.
A public hearing on this matter will not be held unless a separate request for a hearing is submitted to the Office of the Chief Clerk during the comment period as defined herein.
Staff proposes amendments to the Texas Statistical Plan for Residential Risks to amend and add fields that will allow the reporting of experience relating to the use of recently approved residential policy forms.
The Commissioner has jurisdiction of this matter pursuant to the Insurance Code, Article 5.96 and §§38.204 and 38.207.
Copies of the full text of the Staff petition and the proposed amendments are available for review in the Office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas, 78714-9104. For further information or to request copies of the petition and proposed amendments, please contact Sylvia Gutierrez at 512-463-6327 (refer to Ref. No. P-0702-30-I_).
Comments on the proposed amendments must be submitted in writing within 30 days after publication of the proposal in the Texas Register to the Office of the Chief Clerk, P. O. Box 149104, MC113-2A, Austin, Texas 78714-9104. An additional copy of the comments should be submitted to C.H. Mah, Senior Associate Commissioner for Property & Casualty, P. O. Box 149104, MC105-5G, Austin, Texas 78714-9104.
This notification is made pursuant to the Insurance Code, Article 5.96, which exempts action taken under this article from the requirements of the Administrative Procedure Act (Government Code, Title 10, ch. 2001).
This agency hereby certifies that the proposed amendments have been reviewed by legal counsel and found to be within the agency's authority to adopt.
The staff of the Texas Department of Insurance (Staff) files this petition proposing amendments to the Texas Statistical Plan for Residential Risks (Statistical Plan) to add and amend fields relating to the use of new residential property policy forms. The proposed changes are necessary in order to collect experience that will be used to analyze and track the use of these recently approved forms.
The Insurance Code, Article 5.96 and §§38.204 and 38.207 authorize the filing of this petition. Article 5.96 authorizes the Commissioner to prescribe, promulgate, adopt, approve, amend, or repeal standard and uniform manual rules, rating plans, classification plans, statistical plans and policy and endorsement forms for fire and allied lines of insurance. Section 38.204 provides that a designated statistical agent shall collect data from reporting insurers under a statistical plan adopted by the Commissioner. Section 38.207 authorizes the Commissioner to adopt rules necessary to accomplish the purposes of the subchapter regarding statistical data collection.
I. Proposals for Consideration and Adoption:
Amendments proposed by Staff add options to the Policy Forms field of the Statistical Plan. The proposed new options for this field are:
A FP-7955 TX (State Farm Homeowners Policy Form).
B FP-7954 TX (State Farm Renters Policy Form).
C FP-7956 TX (State Farm Condo Policy Form).
D HO-3RTX (USAA Homeowners policy Form).
E HO-6RTX (USAA Condo Policy Form).
F HO 00 02 (ISO Homeowners 2-Broad Form).
G HO 00 03 (ISO Homeowners 3-Special Form).
H HO 00 04 (ISO Homeowners 4-Contents Broad Form).
I HO 00 05 (ISO Homeowners 5-Comprehensive Form).
J HO 00 06 (ISO Homeowners 6-Unit Owners Form).
K HO 00 08 (ISO Homeowners 8-Modified Coverage Form).
Additionally, Staff requests the ability to add new options to this field as new policy forms are approved in the future without holding a hearing.
Staff´s proposed amendments also add two new fields. One field is to report the actual dollar amount of the deductible associated with a particular policy and the other is to indicate whether wind coverage is included. These new fields will be available for both the recently approved policy forms mentioned above as well as for existing policy forms. The current deductible field will remain in place for companies that are not able to make system changes necessary to report the actual dollar amount of a deductible.
Staff's proposed amendments also edit existing fields to allow for reporting buy-back endorsements pertaining to foundation, water, and other specified coverage and for reporting the amount of coverage purchased.
In addition to the above, Staff proposes to make changes to the Statistical Plan to eliminate the Protection Key Rate field as it is no longer applicable, to delete Deductible Type Codes that are no longer valid, to correct Type of Loss Codes that are in error, and to amend the types of submission media to reflect electronic media types that are currently available.
II. Requested Action.
Staff requests that the proposed amendments to the Statistical Plan as detailed in the attached exhibit be adopted and, as a result, companies licensed and writing personal residential insurance in Texas shall report according to these amendments. These changes are proposed to be mandatory effective with fourth quarter 2002 Statistical Plan reports.
Special Projects Director, Property & Casualty