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Texas Department of Insurance
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Subchapter FF. Credit Life and Accident and Health Insurance

Division 2. Applications and Policies

28 TAC §3.5110

Division 6. Deviation Procedures

28 TAC §3.5603

The Texas Department of Insurance proposes repeal of §§3.5110 and 3.5603, concerning open and closed-end transactions and definitions. The repeal of these sections is necessary to consolidate definitions contained in those sections into one section. Simultaneous with this proposed repeal, proposed new §3.5002 is published elsewhere in this issue of the Texas Register , which implements, in part, Texas Insurance Code Chapter 1153, as amended by Acts 2001, 77th Legislature in House Bill (HB) 2159. That new section will include the definitions that are currently found in §§3.5110 and 3.5603.

Kim Stokes, Senior Associate Commissioner, Life, Health and Licensing 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 sections. There will be no measurable effect on local employment or the local economy as a result of the proposal.

Ms. Stokes has also determined that for each year of the first five years the repeal of the sections is in effect, the public benefit anticipated as a result of administration and enforcement of the repealed sections will be the elimination of unnecessary rule sections and the fact that the rules pertinent to presumptive premium rates for credit and accident and health insurance will be easier for the public to understand. 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 December 20, 2004 to Gene C. Jarmon, General Counsel and Chief Clerk, Mail Code 113-1C, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comment must be simultaneously submitted to Bill Bingham, Deputy for Regulatory Matters, Life, Health and Licensing Program, Mail Code 107-2A, 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.

Repeal of §§3.5110 and 3.5603 is proposed pursuant to Insurance Code Chapter 1153, and §36.001. Chapter 1153 gives the Commissioner of Insurance authority to set presumptive premium rates by rule for credit life and accident and health policies. 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, Chapter 1153

Division 2. Applications and Policies

§3.5110. Open and Closed-End Transactions.

Division 6. Deviation Procedures

§3.5603. Definitions.

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