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Texas Department of Insurance
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28 TAC §§5.9800 - 5.9811

1. INTRODUCTION. The Commissioner of Insurance adopts the repeal of Subchapter R, §§5.9800 - 5.9811, concerning temporary rate reductions for certain lines of liability insurance affected by tort reform legislation enacted by the 73rd and 74th Legislatures. The repeal is adopted without changes to the proposal published in the June 29, 2007 issue of the Texas Register (32 TexReg 3963).

2. REASONED JUSTIFICATION. The repeal of Subchapter R, §§5.9800 - 5.9811, is necessary because the need for the rules has been eliminated. The rules establish the methodology to be followed and provide the loss and ALAE reduction percentages to be used to determine the rate reduction factors for certain lines or sublines of liability insurance affected by the 1993 and 1995 tort reforms enacted by the 73rd and 74th Legislatures such that savings from the tort reforms would be passed to all insurers' policyholders on a prospective basis. The repeal of Insurance Code Article 5.131, effective April 1, 2007, requiring mandatory rate reductions, further obviates the need for this subchapter. The Department identified the subchapter for repeal as part of the Department's ongoing review of existing rules pursuant to Government Code §2001.039.

3. HOW THE SECTION WILL FUNCTION. The adoption of the repeal will result in the removal of obsolete and potentially confusing provisions from the Texas Administrative Code.

4. SUMMARY OF COMMENTS AND AGENCY RESPONSE. The Department did not receive any comments on the proposed repeal.

5. STATUTORY AUTHORITY. The repeal of Subchapter R, §§5.9800 - 5.9811, is adopted pursuant to Insurance Code §36.001, which 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.

6. TEXT.


§5.9800 . Purpose and Scope.

§5.9801. Definitions.

§5.9802. Application to Insurers and Monitoring of Insurers.

§5.9803. Rulemaking Procedures for Reductions in Rates.

§5.9804. Loss and ALAE Reduction Percentages by Line.

§5.9805. Calculation and Application of Rate Reduction Factor.

§5.9806. Duration.

§5.9807. Filing Requirements.

§5.9808. Administrative Relief.

§5.9809. Declaration of Inapplicability.

§5.9810. Appeal of Rate Reduction and Severability.

§5.9811. Loss and ALA E Reduction Percentages Applicable in Specified Years.

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