The Commissioner of Insurance, by Commissioner´s Order No. 00-1000, has adopted amendments to the Texas Standard Provisions for Automobile Insurance Policies (the Standard Provisions) to eliminate countersignature requirements from all policies, instructions, and endorsements contained in the Standard Provisions. Exhibits on file with the Chief Clerk under Ref. No. A-0700-16-I show how these changes are implemented. Generally, the exhibits are arranged in the order in which the policy forms and instructions appear in the Standard Provisions, as follows: Personal Auto Policy (page 15, and its Declarations - page 16); Reference notes for commercial policies (page 62); Business Auto Declarations (page 64); Garage Declarations (page 68); Truckers Declarations (page 80); Non-Resident Texas Auto Policy (Reference Notes - page 89); Mechanical Breakdown Policy (Reference Notes - page 101, Declarations - page 102, New Vehicle/Select Component pages 103 and 108, New Vehicle - pages 109 and 114, Used Vehicle - pages 115 and 120); Single Interest Automobile Physical Damage Insurance Policy (Reference Notes - page 125, Master Policy Declarations - page 126, Master Policy - page 131, Individual Policy Declaration - page 132, Individual Policy - page 136, Master Policy Certificate - page 137); Excess Liability Policy (Reference Notes - page 143, Declarations - page 144, policy form - page 145); and Mobilowners Policy (Declarations - page 149, policy form - page 158).
At the hearing Staff introduced some additional exhibits into the record, and those exhibits are also on file with the Chief Clerk under Ref. No. A-0700-16-I. The additional exhibits concerning three endorsements in the standard provisions are needed to show removal of each signature blank for "(duly authorized representative)" in order to prevent the possible interpretation that a countersignature would be required. Those endorsements are amendatory endorsements 593D (Texas Personal Auto Policy), 4J (Mobilowners Policy), and 4Q (Mobilowners Policy). The other exhibits are needed to show the change of a footnote from "2" to "1" in two places on the first page of two policy forms: Single Interest Automobile Physical Damage Insurance Policy (Master Policy Reporting Form) and (Individual Policy Form). These footnote changes are needed because of changes being made to the reference notes for both of those policies, to eliminate references to countersignatures.
Current automobile policy forms and their instructions, promulgated under the Insurance Code, Article 5.06, require countersignatures on all such policies. Former Insurance Code Article 21.09 prohibited insurers from allowing any nonresident to countersign such a policy, and it provided that countersigning could not be done "except through regularly licensed local recording agents of such companies in Texas."
Through House Bill 3391, the 75th Texas Legislature repealed Insurance Code Article 21.09, and amended Article 21.11 to delete the reference to countersigning. Since a countersignature is no longer required by statute, it should no longer be required for any policy contained in the Standard Provisions.
The amendments were adopted to become effective September 30, 2000, which is 15 days after publication of the Commissioner´s action in the Texas Register. However, in order to allow insurers to use up at least some existing supplies of their forms, the amendments will not become mandatory for any policy that becomes effective prior to 12:01 A.M., April 1, 2001.
A company will have the option of whether to require a countersignature on a current form that has a countersignature blank, at any time between the effective date of the order and April 1, 2001.
Any questions regarding this bulletin should be directed to Grover Corum, Manager, Automobile/Homeowners Division at 512-322-3430.
David Nardecchia
Director
Personal And Commercial Lines Division