Commissioner’s Bulletin # B-0021-99

The Commissioner of Insurance, under Commissioner's Order Number 99-0346, has adopted an amendment to 28 TAC §5.5002 relating to inland marine insurance that became effective March 24, 1999. The amendment adds a new subparagraph (PP) to paragraph (5) to provide that electronic equipment protection coverage is a class of inland marine insurance for which rates, rules and forms must be filed with the Texas Department of Insurance for approval. The amendment further provides that coverage for electronic equipment includes the electronic equipment, electronic media, and extra expense incurred in order to continue normal operations and that coverage must be provided while the property is in transit. A copy of the text of 28 TAC §5.5002(5)(PP) is attached for your information.

While the adoption of this amendment allows insurers to write electronic equipment protection as an inland marine coverage, the current regulation of electronic equipment protection coverage pursuant to Article 5.13-2, Insurance Code, remains unchanged, allowing insurers the option of writing electronic equipment protection either as commercial property insurance or as inland marine insurance.

Insurers who wish to write electronic equipment protection coverage as inland marine must file policy forms, rules and rates with the Department for prior approval. Submissions must be filed in accordance with the filing requirements contained in "Property & Casualty Filings Made Easy", accessible on our website at www.tdi.state.tx.us.

Questions regarding this bulletin should be addressed to:

Sincerely,

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

Attachment

6. TEXT.

§5.5002. Texas Definition of Inland Marine Insurance