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You are here: Home . rules . 2008 . 0514-059

SUBCHAPTER A. Automobile Insurance

Division 3. Miscellaneous Interpretations

28 TAC §5.207

1. INTRODUCTION. The Commissioner of Insurance adopts new §5.207, concerning a new Financial Responsibility Consumer Outreach Program. The new section is adopted without changes to the proposed text published in the April 4, 2008 issue of the Texas Register (33 TexReg 2775).

2. REASONED JUSTIFICATION. This new section is necessary to implement the provisions of §601.072 of the Transportation Code, enacted by SB 502, 80th Legislature, Regular Session, effective September 1, 2007.

Section 601.072(c) requires the Department to establish an outreach program to inform persons of the requirements of the Texas Motor Vehicle Safety Responsibility Act (Act) (Transportation Code Chapter 601) and the ability to comply with the financial responsibility requirements of the Act through motor vehicle liability insurance coverage. Section 601.072(c) also requires the Commissioner of Insurance to establish the requirements for the outreach program by rule. The adopted new section establishes the requirements for the Financial Responsibility Consumer Outreach Program (Program).

Section 601.072(c) specifies that the outreach program must be designed to encourage compliance with the financial responsibility requirements of the Act and must be made available in English and Spanish. The adopted new section requires the Department to develop and periodically update Program materials that are designed to encourage compliance with the financial responsibility requirements. The new section also requires that the materials be made available in English and Spanish.

3. HOW THE SECTION WILL FUNCTION. Adopted §5.207(a) states the purpose of the section, which is to establish the requirements for the Financial Responsibility Consumer Outreach Program (Program). Adopted §5.207(b) - (e) establish the requirements for the Program. Adopted §5.207(c) requires the Department to develop and periodically update Program materials that are designed to encourage compliance with the financial responsibility requirements. Adopted §5.207(d) requires the materials to include information on minimum coverage amounts required to establish financial responsibility under the Act and the ability to comply with the Act by providing information on how to comply with the Act through motor vehicle liability insurance coverage and how to obtain motor vehicle liability insurance coverage. Adopted §5.207(e) provides that the materials may be in the form of publications, brochures, and fliers and requires that the materials be made available in English and Spanish. Adopted §5.207(e) also requires that the materials be made available on the Department's website and that they may also be distributed by other means. Under adopted §5.207(f), the Department may also provide press releases and educational sessions. Under adopted §5.207(g), the materials may be incorporated into existing Department consumer outreach programs and program materials.

4. SUMMARY OF COMMENTS AND AGENCY'S RESPONSE. The Department did not receive any comments on the proposed new section.

5. STATUTORY AUTHORITY. The section is adopted pursuant to the Transportation Code §601.072(c) and the Insurance Code §36.001. The Transportation Code §601.072(c) requires the Commissioner of Insurance to establish the requirements for an outreach program by rule to inform persons of the requirements of Chapter 601 of the Transportation Code (Texas Motor Vehicle Safety Responsibility Act) and the ability to comply with the financial responsibility requirements of Chapter 601 through motor vehicle liability insurance coverage. The Insurance Code §36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Department under the Insurance Code and other laws of this state.

6. TEXT.

§5.207. Financial Responsibility Consumer Outreach Program.

(a) The purpose of this section is to establish the requirements for the Financial Responsibility Consumer Outreach Program (Program), which the department is required to establish under Transportation Code §601.072(c).

(b) As required under Transportation Code §601.072(c), the Program shall inform consumers of the requirements of the Texas Motor Vehicle Safety Responsibility Act (Act) (Transportation Code, Chapter 601) and the ability to comply with the financial responsibility requirements of the Act through motor vehicle liability insurance coverage.

(c) The department shall develop and periodically update Program materials that are designed to encourage compliance with the financial responsibility requirements of the Act.

(d) The Program materials shall include information on:

(1) minimum coverage amounts required to establish financial responsibility under the Act;

(2) how to comply with the Act through motor vehicle liability insurance coverage; and

(3) how to obtain motor vehicle liability insurance coverage.

(e) The Program materials may be in the form of publications, brochures, and fliers. Pursuant to Transportation Code §601.072(c), the Program materials must be made available in English and Spanish. The Program materials must be made available on the department's website and may also be distributed by other means.

(f) The department may also provide press releases and educational sessions.

(g) The Program materials may be incorporated into existing department consumer outreach programs and materials.



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