Commissioner’s Bulletin # B-0088-98

The Commissioner of Insurance, under Commissioner's Order No. 98-0794 dated July 6, 1998, adopted amendments to 28 TAC §5.5002(5)(Q), to be effective January 1, 1999. These amendments to the Department's rules on inland marine insurance provide that credit property insurance coverage resulting from an open or closed end consumer transaction is a class of inland marine insurance for which rules, rates, and forms must be filed with the Texas Department of Insurance for approval. All property and casualty insurance companies were informed of these amendments by bulletin on October 8, 1998 ( Bulletin No. B-0072-98), which advised them of the rule's filing deadline.

Pursuant to the above rule amendments, insurers who are subject to the filing requirements of Article 5.53, Texas Insurance Code, and those who are presently writing coverage (credit property) for consumer credit transactions pursuant to the current regulatory requirements, or those who wish to write this coverage must accordingly file policy forms, rules, and rates with the Department for prior approval before January 1, 1999.

As of the date of this bulletin, the Department has received only one such filing. Insurers who are subject to the filing requirements and are writing such business on January 1, 1999, without having made the appropriate filings with the Department will be in violation of 28 TAC §5.5002 and Article 5.53, Texas Insurance Code, and may be subject to disciplinary action.

Questions regarding this bulletin and/or filing requirements should be addressed to:

Sincerely,

Marilyn Hamilton, Deputy Commissioner
Commercial Property/Casualty Division 104-PC