COMMISSIONER'S BULLETIN NO. B-0047-7

December 5, 1997

TO: All Insurers Writing Residential Property Insurance in Texas and All Companies Writing Commercial Lines Insurance in Texas

Re: Adoption of Proposed Amendments to the Texas Statistical Plan for Residential Risks and the Texas Commercial Lines Statistical Plan

Commissioner´s Order No. 97-1223 issued on December 5, 1997, adopted amendments to the Texas Statistical Plan for Residential Risks ("Residential Plan") and to the Texas Commercial Lines Statistical Plan ("Commercial Plan") as proposed by the staff of the Texas Department of Insurance. The Commissioner adopted the amendment of the Residential Plan to delete the Farm and Ranch ("FR") and Farm and Ranch Owners ("FRO") reporting provisions from the Residential Plan and the amendment of the Commercial Plan to adopt two chapters relating to FR and FRO reporting.

The adopted changes are necessary in order to comply with the 75th Legislature´s passage of S.B. 1499, which amended Article 5.13-2 of the Texas Insurance Code to include FR and FRO policies as commercial lines insurance policies. The adopted amendments also include the incorporation of minor changes to these statistical plans for clarification of and consistency with existing procedures. All amendments and associated changes are effective beginning January 1, 1998. None of these amendments will result in any programming or system changes at the company or statistical agent levels.

In addition, per Commissioner´s Order No. 97-1224, the Texas Insurance Checking Office (TICO) will continue to serve as the statistical agent to gather FR and FRO insurance data even though FR and FRO are now reported under commercial lines. A copy of the revised statistical plans will be sent to applicable companies by TICO. TICO will also include tables that summarize the adopted changes.

SPECIAL NOTICE:
The issue of premium discounts for qualified roof construction was also discussed under a separate Docket number at the hearing held on December 3, 1997; however, no action was taken at that time. Approval of the roof construction premium discounts will likely result in additional changes to the Residential Stat Plan, so please be advised that additional amendments are very possible in the near future. Notices of these possible reporting enhancements will be conveyed via Commissioner´s Bulletins and/or our statistical agent as they become available.

Questions relating to this bulletin should be directed to the undersigned at (512) 475-3026 or Jennifer Vaughn at (512) 305-8125.

Sincerely,

Gary Gola
Special Projects Director,
Technical Analysis (MC 105-5S)

For further information, contact: ChiefClerk@tdi.state.tx.us