28 TAC §25.9
The Commissioner of Insurance adopts an amendment to §25.9 relating to Texas Automobile Insurance Plan Association Financing Disclosure and Premium Finance Comparison Disclosure Form with a change to the proposed text as published in the July 27, 2001 issue of the Texas Register (26 TexReg 5606).
The Texas Automobile Insurance Plan Association Financing Disclosure and Premium Finance Comparison Disclosure Form (form), which briefly explains payment options under installment and premium finance plans, is required to be used by all insurance premium finance companies subject to this chapter of the Administrative Code and the Insurance Code, Chapter 24. The Texas Automobile Insurance Plan Association (TAIPA) Plan of Operation now allows a purchaser of a commercial automobile insurance policy to use an installment plan to pay for the policy. The amendment to §25.9 is necessary to incorporate this change into the form to ensure that the form is consistent with the TAIPA Plan of Operation. The effective date of the new amended form is changed to October 2, 2001. This change is necessary to allow for at least twenty days after filing with the Texas Register for the section to become effective.
The change to the form, which is adopted and incorporated by reference into §25.9, is to allow a commercial automobile insurance premium to be financed. The form briefly explains to the consumer the payment options under installment and premium finance plans. It compares the dollar amounts required for the down payment and monthly payments for both payment options.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Insurance Code Articles 24.09 and §36.001. Article 24.09 authorizes the Commissioner of Insurance to adopt and enforce rules necessary to carry out the provisions of Chapter 24, Financing Insurance Premium. Section 36.001 authorizes the Commissioner to adopt rules for the conduct and execution of the duties and functions of the Texas Department of Insurance as authorized by statute.
§25.9. Texas Automobile Insurance Plan Association Financing Disclosure and Premium Finance Comparison Disclosure Form.
(a) Before an insurance premium finance company may finance a policy insured through the Texas Automobile Insurance Plan Association (TAIPA), it must require disclosure to the insured or prospective insured the payment plan available through TAIPA. A comparison between the terms of financing the policy with an insurance premium finance company and the use of the payment plan available through TAIPA must be made.
(b) This disclosure shall be made using the Premium Finance Comparison Disclosure Form (Disclosure Form), which the Department adopts and incorporates by reference. The Disclosure Form shall be provided to the consumer in both English and Spanish. The effective date of the Disclosure Form is October 2, 2001. This form is published by the Department and may be obtained from the Premium Finance Licensing Unit, Mail Code 107-5A, Texas Department of Insurance, 333 Guadalupe, P.O. Box 149104, Austin, Texas 78714-9104. Reproduction of this form is allowed.
(c) The insurance premium finance company shall maintain copies of the Disclosure Forms as evidence to an examiner that disclosure of the TAIPA payment plan was made to the insured.