No. 04-0625

Subject Considered:

General remarks and official action taken:

On this day came on for consideration by the Commissioner of Insurance (Commissioner), the matter of computing the standard rate index for personal automobile insurance issued by a county mutual insurance company. The authority to compute this index is granted to the Commissioner under the TEX. INS. CODE Article 5.13-2 § 13 (c) which authorizes the Commissioner to consider the benchmark rate in effect under Article 5.101 on the effective date of Senate Bill 14, Acts of the 78th Legislature, Regular Session, 2003, and adjust annually thereafter to reflect average changes in claims costs in the personal automobile insurance market in this state as the Commissioner determines necessary.

At this time the Commissioner has determined that it is reasonable to utilize the current benchmark rate without adjustment as the standard rate index. Therefore, the benchmark rates for personal automobile insurance set forth in Official Order of the Commissioner of Insurance No. 01-1038, November 1, 2001, are adopted, as the standard rate index for personal automobile insurance issued by a county mutual insurance company and shall be effective December 1, 2004.

This Order does not limit the authority of the Commissioner to promulgate rules to compute any annual adjustments to the rate index.

The Commissioner retains the authority to act in all things and at all times with respect to the Commissioner's statutory charge.

AND IT IS SO ORDERED.
SIGNED AND ENTERED June 21, 2004, at Austin, Texas.

JOSE MONTEMAYOR
COMMISSIONER OF INSURANCE
TEXAS DEPARTMENT OF INSURANCE