The Texas Real Estate Commission (TREC) adopts an amendment to §535.208, Application for a License, without changes to the proposed text as published in the July 18, 2008, issue of the Texas Register (33 TexReg 5635) and will not be republished. The amendment adopts by reference a revised Certificate of Insurance, Form REI 8-1, which includes revisions to the Certificate of Insurance form for inspectors to use in showing proof of liability insurance coverage to the Commission.

The amendment modifies the Certificate of Insurance form in order to clarify the types of conduct for which coverage is required, to clarify that the aggregate limit is as specified in the policy, and to extend the time period within which insurers must notify TREC of canceled or non-renewed policies from 10 days to 30 days.

The reasoned justification for the rule as adopted is greater clarity regarding the type of coverage that inspectors must carry and, therefore, increased availability of insurance coverage for inspectors. The increased time period for insurers to notify TREC of canceled or non-renewed policies reflects the current practices of insurers regarding the processing of policy renewals.

No comments were received regarding the amendments as proposed.

The amendment is adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.