The Commissioner of Insurance adopts amendments to 28 TAC Chapter 3, concerning life, accident, and health insurance and annuities. Sections 3.2 - 3.4, 3.6, 3.7, 3.104, 3.105, 3.107, 3.108, 3.114, 3.115, 3.124, 3.127, 3.203 - 3.205, 3.301, 3.302, 3.308, 3.310, 3.311, 3.408, 3.601, 3.702, 3.704, 3.802 - 3.806, 3.811, 3.909, 3.1001, 3.1002, and 3.1006, 3.1101, 3.1303 - 3.1305, 3.1403, 3.1404, 3.1601, 3.1602, 3.1605, 3.1607, 3.1720, 3.1740, 3.1742, 3.1760, 3.3001, 3.3009, 3.3010, 3.3038, 3.3039, 3.3052, 3.3057, 3.3070, 3.3092, 3.3100, 3.3101, 3.3110, 3.3321, 3.3401 - 3.3403, 3.3829, 3.3832, 3.3837, 3.3842, 3.3849, 3.3871, 3.3873, 3.3874, 3.4001, 3.4002, 3.4004, 3.4005, 3.4101 - 3.4103, 3.4105, 3.4317, 3.4503, 3.4506, 3.5103, 3.5302, 3.5602, 3.5610, 3.9101, 3.9103, 3.9104, 3.9106, 3.9202, 3.9203, 3.9206, 3.9211, 3.9212, 3.9401, 3.9403 and 3.9503 are adopted without changes to the proposed text published in the November 5, 2021, issue of the Texas Register (46 TexReg 7496). These rules will not be republished.

Section 3.5002 and §3.1606 are adopted with nonsubstantive changes to the proposed text. The Texas Department of Insurance (TDI) revised §3.5002 to correct internal references to other rule sections by replacing "subchapter" with "title" in §3.5002(9) and §3.5002(17) and by adding a missing end parenthesis in §3.5002(7)(E). TDI revised §3.1606 by changing the words "apply" to "applies" and "remain" to "remains." These rules will be republished.

REASONED JUSTIFICATION. The amendments update numerous sections throughout Chapter 3 to reflect Insurance Code §1105.0015 and §425.073, relating to the valuation manual and the operative date of that manual. The amendments also correct and update obsolete and incorrect text throughout Chapter 3. Amendments include updates to (1) statutory references to reflect Insurance Code recodification; (2) use the current names of state agencies; (3) specify current mailing and website addresses; and (4) correct punctuational, grammatical, and typographical errors and revise punctuation and capitalization as appropriate for agency style.

Amendments to multiple sections include the deletion of "shall" or replacement of "shall" with "will" (or another context-appropriate word). The purpose of changing the word "shall" is to provide plain language clarification of the rule text, consistent with current agency style and guidance on the TDI website, which provides links to resources on writing in plain language. Resources TDI uses for plain language guidance include plainlanguage.gov, which provides federal plain language guidelines, and the National Archives guidelines for clear legal documents. Both sources advise using alternatives to the word "shall" to provide clarity for readers.

The adopted sections also replace "subchapter" or "chapter" with "title" where necessary, and remove "the" in front of and commas following "Insurance Code" where appropriate. The adopted sections also replace gendered references to the Commissioner with the phrase "the commissioner."

SUMMARY OF COMMENTS. TDI did not receive any comments on the proposed amendments.

STATUTORY AUTHORITY. The Commissioner adopts amendments to Subchapter Y, Division 2, under Insurance Code §§1651.004, 1651.107, and 36.001.

Insurance Code §1651.004 authorizes TDI to adopt reasonable rules necessary and proper to carry out Chapter 1651.

Insurance Code §1651.107 provides that the Commissioner may adopt rules as necessary to implement Chapter 1651, Subchapter C.

Insurance Code §36.001 provides that the Commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.