Rule 9 FAQ’s

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Rule 9 FAQ’s

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What is the additional charge for a non-fault accident?

Fault or non fault does not determine the charges through the Association. All driving record surcharges are set forth under Rule 9. If there is Bodily Injury or Property Damage to others, and if none of the 5 exceptions shown in Rule 9 apply, there will be a 20% additional charge.

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My insured has three at fault accidents. What surcharge
applies?

If there is a surcharge for each accident, the total additional charge will be 60%. The maximum charge
is 100%, whether for accidents, convictions or a combination thereof.Back to index

What is the additional charge for an accident and a ticket for “failure to yield”?

If the accident is chargeable under Rule 9, there will be a 35% charge, 15% for the ticket and 20% for the accident.Back to index

My insured has two D.W.I.’s, what do I charge?

Each D.W.I. has a 60% additional charge; however, the maximum additional charge under Rule 9 is 100%. If an SR-22 is required, there would be an additional $20 premium charge on the policy under Rule 10.Back to index

The insurance company is charging my insured a 15% additional charge for an “overload” ticket, received while my insured was operating a company truck. Is this correct?

Yes, any violations of the traffic code listed on the MVR will be chargeable, unless listed as an “Exception” to the convictions listed
in Rule 9. The vehicle being driven has no bearing on whether or not the charge applies. Back to index

My insured has a 17 year old son with a clear driving record. Dad has 2 tickets for “speeding” which the company has charged against the son on his car. Should this not be charged against the father’s car?
Under Rule 9, all driving records are combined, for all drivers, up to a 100% maximum additional charge. This charge is then applied to
the highest rated vehicle, with the remaining vehicles being without charge. Back to index

My insured has a “speeding” ticket which will drop off his record in 2 months. Will the company adjust the premium?

The company will continue to surcharge for the ticket until the policy renews or terminates. Back to index

The company is charging for a ticket for “glasses restriction”. Is this correct?

Yes, all violations are charged, unless excluded in Rule 9. Back to index

Is it correct that a company may charge for moving type violations only?
No. Rule 9 states traffic convictions, it does not state only “moving” violations. Back to index

The company is charging for a ticket “failure to appear”. Is this correct?

No. It is excluded under Rule 9. Back to index

My insured had a one car accident, he overturned. Does an additional charge apply?

Only if there was any Bodily Injury or Property Damage to others. List the accident on the application; however, if there was no Bodily
Injury or Property Damage to anyone other than the insured there will be no charge. Back to index

What is the additional charge for a “no driver’s license” ticket?

Usually the additional charge under Rule 9 is 60%. If the producer states that the insured had a valid license at the time, but did not have it on his person, then the charge must be amended to 15%. If so, this should be explained on the application. Back to index

What is the additional charge for a ticket “Expired driver’s license”?

The additional charge is 60%, as it is for driving without a valid license. Back to index

Is there an additional charge for a “no motorcycle endorsement” ticket?

No, provided there is an otherwise valid license in force. If there was not a valid license in force, a ticket would probably be given for “no drivers license” and a 60% additional charge applied. Back to index

What is the additional charge for a “no commercial operators license”?

The additional charge is 60%, as this is operating a commercial vehicle without a valid commercial license. Back to index

I have an insured with an owner’s policy for which there are additional charges through the Association. He is now required to obtain a non-owner type policy for his occupation. Will these additional charges apply to his non-owner policy?

Additional charges will apply to both policies. Back to index

I have an insured needing a policy. He had a D.W.I. almost three years ago. Will the company delete the additional charge at the 3 year anniversary?

If the policy is a Personal Automobile Policy, the additional charge will be deleted 36 months immediately following the date of conviction, whether mid-term or at expiration. Notify the company on this anniversary date. If on a Business Auto policy, the additional charge is applied until next renewal date. Back to index

My insured had an accident with a fixed object. Do additional charges apply?

A surcharge applies only if there was Bodily Injury or Property Damage to others. Back to index

My insured has two assignments, each with five vehicles. Both companies are applying additional charges under Rule 9. Is this correct?

Yes. Since each company has exposure for these drivers, each company is entitled to the additional charge, on the highest rated vehicle per policy. The Texas Department of Insurance has confirmed this interpretation. Back to index

My insured has an entry on his driving record showing “drug conviction”. Is there an additional charge?
No. This indicates that the insured was convicted of a drug offense. These offenses are required to be listed on the Motor Vehicle Record. Back to index

My insured has an owner’s policy through the Association. He has now obtained a Named Operator-Government Employee policy which was assigned to the same company. The company is applying the additional charge on this second policy for an accident in which the insured’s child was at fault and a claim was paid. Is this correct?

Yes, a 20% surcharge applies for accidents if the insured was involved as either owner or operator of the vehicle. Back to index

My applicant received a ticket in another state. Is there an additional charge?

Yes, if not excluded by Rule 9. Back to index

My applicant received a ticket for racing. Is this a major or minor violation?

This is not considered a “major” offense; therefore only a 15% additional charge will apply. Back to index

My insured has a son on her TAIPA policy with a driving record charge. The son now requires an SR-22; therefore, we are applying for a Named Non-Owner policy. Will the driving record charge apply to both the parents’ and the son’s policy?

No, there is an exception under Rule 9 which states that additional charges applied in the rating of the TAIPA owners policy shall not be applied in the rating of the TAIPA Named Non-Owner policy which insures a relative of the owner, who is resident of the same household. Back to index

My insured has two TAIPA policies. One is a Private Passenger, one is a Commercial, and they are assigned to different insurers. May both companies apply a surcharge under Rule 9?

My insured has requested to add more than five vehicles to their policy. May we add the additional vehicles to the existing policy, or would we issue separate polices (one for each set of five vehicles)? If there are surcharges, may we apply them to each policy?

The decision to issue the application as one policy or multiple policies is an insurer’s prerogative. Section 43 of the Plan of Operation requires that an insurer must accept over five vehicles unless it would be inequitable to assign to one member due to unusual hazard or risk. If the insurer believes the insured has enough of a surcharge to merit reassignment to another company due to unusual hazard or risk, they should contact TAIPA for possible reassignment. Back to index

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