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1. INTRODUCTION. The Commissioner of Insurance adopts amendments to §§5.9002 – 5.9004, 5.9007, 5.9008, 5.9010, and 5.9012, concerning rules to implement the Amusement Ride Safety Inspection and Insurance Act (the Act). The sections are adopted without changes to the proposed text of the sections as published in the September 2, 2005, issue of the Texas Register (30 TexReg 5284) and to the forms adopted by reference.
2. REASONED JUSTIFICATION . This adoption is necessary to implement legislation enacted by the 79th Legislature, Regular Session, in House Bill (HB) 1892, effective June 17, 2005 , and HB 2879 and Senate Bill (SB) 1282, both effective September 1, 2005 , and to update statutory references and two amusement ride forms. The legislation clarifies insurance requirements for amusement rides to allow policies to be written in either a combined single limit or a split limit amount in accord with the newly specified minimum limits set forth in §2151.101 of the Occupations Code, and further defines and specifies an exception from amusement ride regulation for certain challenge courses that meet particular insurance requirements. The purposes of the amendments are to conform applicable sections of the amusement ride rules to the new legislation, update statutory references in those sections and update two amusement ride forms.
3. HOW THE SECTIONS WILL FUNCTION . Amended §5.9002 adds to the definition of “amusement ride” the exception for a challenge course or any part of a challenge course as defined in §2151.107 of the Act that meets certain specified insurance requirements as set forth in that section and in §2151.002 of the Act. Amended §5.9004 updates statutory references and clarifies the insurance requirements for operating an amusement ride to allow insurance policies to be written as a combined single limit or a split limit and to specify the minimum amounts in which such limits can be written. Amended §5.9012 updates statutory references. Two amusement ride forms, TDI Form AR-100 and TDI Form AR-800 , are updated to add clarifying, corrective, and explanatory language and delete unnecessary language. Additionally, the sections that reference these forms which are adopted by reference, §§5.9003, 5.9004, 5.9007, 5.9008, and 5.9010, are amended to indicate the revised effective date for these forms.
4. SUMMARY OF COMMENTS . No comments were received.
5. STATUTORY AUTHORITY . The amended sections are adopted pursuant to Title 13, Occupations Code, §§2151.101(a), 2151.002(1), and 2151.107 and the Insurance Code §36.001. Section 2151.101(a) as amended by the 79th Legislature, Regular Session, in SB 1282 and HB 2879 clarifies insurance requirements for amusement rides to allow policies to be written in either a combined single limit or a split limit amount in accord with the newly specified minimum limits set forth in §2151.101(a)(3)(A) and (B) of the Occupations Code. Section 2151.107 as enacted by the 79th Legislature, Regular Session, in HB 1892 and HB 2879, and §2151.002 as amended by the 79th Legislature, Regular Session, in SB 1282 define and specify an exception from amusement ride regulation for certain challenge courses that meet particular insurance requirements. 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.
6. TEXT.
§5.9002. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings.
(1) Act -- The Amusement Ride Safety Inspection and Insurance Act (Title 13, Occupations Code, Chapter 2151).
(2) Amusement ride -- Any mechanical, gravity, or water device or devices that carry or convey passengers along, around, or over a fixed or restricted route or course or within a defined area for the purpose of giving its passengers amusement, pleasure, or excitement, but such term does not include:
(A) any coin-operated ride that is manually, mechanically, or electrically operated and customarily placed in a public location and that does not normally require the supervision or services of an operator;
(B) nonmechanized playground equipment, including, but not limited to, swings, seesaws, stationary spring-mounted animal features, rider-propelled merry-go-rounds, climbers, playground slides, trampolines, and physical fitness devices; or
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