28 TAC §5.9101
The Texas Department of Insurance proposes the repeal of Subchapter K, §5.9101 concerning commercial multi-peril policies. Senate Bill (SB) 14, enacted by the 78 th Legislature, Regular Session, 2003, amended various provisions of Chapter 5 of the Texas Insurance Code, including Articles 5.13 and 5.13-2. These legislative amendments added several lines of insurance previously subject to prior approval rate regulation to file and use rate regulation under Article 5.13-2. Repeal of this section is necessary to enable the department to adopt new rules that concern the rating of commercial multi-peril policies and to conform the regulation of commercial multi-peril policies to the regulatory changes enacted by SB 14. Simultaneous to this proposed repeal, proposed new §5.5005 which concerns the rating of commercial multi-peril policies, is published elsewhere in this issue of the Texas Register .
Marilyn Hamilton, Associate Commissioner, Property and Casualty Program, has determined that during the first five years that the proposed repeal is in effect, there will be no fiscal impact on state or local government as a result of enforcing or administering the section. There will be no measurable effect on local employment or the local economy as a result of the proposal.
Ms. Hamilton has also determined that for each year of the first five years the repeal of the section is in effect, the public benefit anticipated as a result of enforcing the repeal will be that the regulation of commercial multi-peril policies will conform to the regulatory changes to Article 5.13-2 of the Insurance Code as enacted by SB 14. There is no anticipated economic cost to persons who are required to comply with the proposed repeal. There is no anticipated difference in cost of compliance between small and large businesses.
To be considered, written comments on the proposal must be submitted no later than 5:00 p.m. on October 18, 2004 to Gene C. Jarmon, General Counsel and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P .O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comment must be simultaneously submitted to Marilyn Hamilton, Associate Commissioner, Property and Casualty Program, Mail Code 104-PC, Texas Department of Insurance, P .O. Box 149104, Austin, Texas 78714-9104. A request for a public hearing must be submitted separately to the Office of Chief Clerk.
The repeal of §5.9101 is proposed pursuant to the Insurance Code Articles 5.13-2 and 5.98 and §36.001. Article 5.13-2 provides the form and rate filing requirements for lines of insurance that may be contained in a commercial multi-peril policy. Article 5.98 provides that the Commissioner may adopt reasonable rules which are appropriate to accomplish the purposes of Chapter 5. Section 36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.
The proposed repeal affects regulation pursuant to the following statutes: Insurance Code Articles 5.13-2 and 5.81
Subchapter K, Commercial Multi-Peril Policies
§5.9101. Multi-peril Policies.