The Commissioner of Insurance, by Commissioner´s Order No. 98-1200, Docket No. 2377, has adopted amendments to the Texas Automobile Rules and Rating Manual (the Manual), Endorsement 523B, Rental Reimbursement Coverage. This endorsement (to be redesignated 523C), Rental Reimbursement Coverage, is amended to remove the provision that excludes coverage when there is a total theft of the auto. New language is substituted as follows:
"When there is a total theft of the auto, the limit of $20 per day (maximum of $600) provided under Coverage For Damage To Your Auto will be supplemented to the extent the limits in the above Schedule exceed that $20 per day limit."
Since August 1, 1996, insureds under the Personal Auto Policy have had the option of purchasing variable limits of rental reimbursement coverage, up to $35 per day (maximum of $1050) through attachment of Endorsement 523B. However, that endorsement has not applied to total theft of the auto, which is covered up to $20 per day (maximum of $600) by the policy´s Part D - Coverage For Damage To Your Auto. The adopted amendment gives a more logical result than the current endorsement´s language, because an insured who wants $35 per day coverage will need it just as much for a total theft loss as for any other loss that puts the auto out of service.
The amendments were adopted to become effective December 1, 1998.
David P. Durden
Deputy Commissioner
Automobile And Homeowners Division