The Commissioner of Insurance, by Commissioner´s Order No. 98-0737, Docket No. 2355, has amended the Texas Automobile Rules and Rating Manual (the Manual) Rule 74, to clarify rating procedures for policies insuring certain youthful operators. Manual Rule 74.A.3. currently states that the 2D or 2DF classification is used, "When the auto is operated by an unmarried female under 21 years of age and there is no male operator under 25 years of age." The amendment deletes the condition, "and there is no male operator under 25 years of age."
The amendment eliminates an inconsistency between Sections A.3. and C.5.b. of Rule 74. When there are more operators than autos, Section C.5.b. requires assignment as follows: (1) Select the youthful operators with the highest rate equal to the number of cars; (2) Of those selected, assign any principal operators to the cars they principally operate. Those requirements conflict with the abovementioned provisions of Section A.3. regarding some policies. This conflict did not exist when these sections were originally adopted, because at that time the youthful male classifications were always higher than 2D (female).
The amendment was adopted to become effective September 1, 1998.
David P. Durden
Deputy Commissioner
Automobile And Homeowners Group