'TmA-rro~~~y GENERAL OF-
Mr. A. A. Fiegan, Jr. casualtyInsurance Division Board of InsuranceCommLssioners Austin,Texas
Dear Sir: . i opinion.iio.O-406 Re: Is the Board of InsuranceCom- missionerslimitedto prescrib- ing a Uniformrate for basic .~ coverageonly under provisions of Article,wb or does it , apply to all ate&-and rules? .. Does the Board have authority 'O' to prescribemars than one ex- cess'limitstable for e&h c&as- sificatlonof hazard? ,Dws the Board have authorityto prescribe ,a.se&ate excesslimitstable . for self-insurereP
Your requestfor an opinionon the above stated questionhas been receivedby this office.
Sections1, 2 and 8 of Article468213 R. C.'S. read a8 follows:
"Every Fnsurance'company,corporation,.hterinsUrance ex- change,mutual,reciprocal,association,Lloyd'sor other in- surer,hereinaftercalled insurer,writingany form of motor vehicleins-de.in this State, shall qually file with the Board of InsuianceCo+siioners, hereinafter,called Commis- sioner,on forms prescribedby the Conuriissioner, a report showingIts premiumsand losses on each classification of motor vehicleriskswritten in this State. The Commissioner shall have the sole and exclusivepower and authority,and it shallbe its duty to determine,fix, prescribe,and promul- gate just, reasonableand adequaterates of premiums,tobe chargedand collecte@by all insurerswritingany form of in- suranceon motor veh&clesin this State, includingfleet or other ratFngplan, desi@ed to discouragelosaea from fire and theft and similarhazardsand to take account.ofthe peculiar hazardsof individualrisks, and an experienceratingplan de- signedto encouragethe preventionof accidents;and to take Mr. A. A. Regan, Jr., Page 2 (0-406)
accountof the peculiarhazardsof individualrisks,provided that only one such plan shallbe fixed or promulgatedfor each form of insurancehereunder. Said Commissionershall have the authorityalso to alter or amend any and all of such rate6 of premiumsso fixed and dete?mlnedand adoptedby it, and to raise or lower the same or any part thereof. Said ConmIssionershall have authorityto employ clericalhelp, inspectors,experts,and other assistants,and to incur such other expensesas may be necessaryin carryingout the provisionsof this,law;provided, however,that the number of employeesand salaryof each shall be fixed in the GeneralAppropriation Bill passed by the Legis- lature. Said Conmissionershall ascertainas soon a6 pradi- cable the annual insuranceloeses incurrsdunder all policieson m&or vehiclesin this State,make and aalntalna recordt~h'ersof, end collectsuch data as will enable said ConmissIonerto clas- slfythe variousmotor vehiclesof the State accordingto the risk and usage made thereof,and to classifyand assign the los- ees.according to the variousclassesof risks to which they are applicable;the Board shall a&ao ascertadnths amount of pre- ialma QIIall such policiesfor each class of rlaks,and main- taluapenuanent recordthereofIn suchmanner as~tillaid Fu $e$erminingjust, reasonableand a&equaterates of premiuus.
', 'Motorvehicleor automobileInsuranceas referrad~toIn 6;$ia~~~shallb-etakan awl construedto~~sn every Ior4 of in- ki@ancoonanyautomobile or other vehiclehw$?@terenumer- ated a~@ its operatingequipmentor nscessitatsdby.reasonof law for da~nagesarisd$gout of the own&ship, pperation,maintenance,or use in this State of sny auta&blle,'motorcycle, motor-bicycle,truck,truck-tractor, tractor;tractionengine,or any other self-propelled veh+le, and inclu~ also every vehicle,trailer or semi~trailerpul&?d ar towed by a n&or vehicle,but excludingevery motor.vehlcle Fuming only upon fired rails or tracks. ljox@en9SCornpenes- tlon IMurance is excludedfrom the foregoingdefinitionand frsmtheterms of this Act.
"Section2. On and after the filingand effectivedate of such classificationof such risks and rates,no such insurer shall issue or renew any such insuranceat premluurates which are greateror less than, or differentfrom, those approvedby the C&mlssioner as just, reasonableand adequatefor