The Commissioner of Insurance, by Commissioner´s Order No. 99-1567, Docket No. 2427, has adopted amendments to the Texas Automobile Rules and Rating Manual (the Manual), Rule 134, Leasing or Rental Concerns, and Rule 141, Rental Car Companies, and the Texas Standard Provisions for Automobile Insurance Policies (the Standard Provisions), auto rental liability policies, by adding a new Amendatory Endorsement RC 001. The amendment´s purpose is to implement the provisions of the Insurance Code, Article 21.09, Section 2, adopted by the 76th Legislature in Senate Bill 957.
Manual Rule 134 will be amended by condensing and clarifying it in a manner that will conform to new statutory wording. Section A will be preceded by an introductory sentence on applicability, including a reference to Rule 141 for provisions governing the sale of automobile rental liability coverage to renters or prospective renters. Section A will be shortened to one sentence, reading, "For automobiles leased or rented with drivers refer to the truckers rule or the public automobile classification rule."
Rule 141.A.1. currently sets forth the types of vehicles that are eligible for coverage under auto rental liability policies, and the amendment revises the list of such vehicle types and adds certain vehicle equipment, as required by new statutory wording. The revised listing is considerably more inclusive than the current one, as the new listing includes motorcycles, motor homes, trailers weighing 10,000 pounds or less, and trucks weighing 26,000 pounds or less, as well as cartop carriers, tow bars, and tow dollies designed for use with a vehicle.
The Manual and the Standard Provisions are amended by adding a new Amendatory Endorsement RC 001, which amends the Texas Automobile Rental Liability Policy and the Texas Automobile Rental Liability Excess Policy. This new endorsement will amend the definition of "Auto" to include the types of vehicles and vehicle equipment required by new statutory wording.
The amendments were adopted to become effective on January 1, 2000.
David P. Durden
Associate Commissioner
Property & Casualty Program