Source: http://www.tdi.texas.gov/commercial/pcckgl.html
Timestamp: 2016-10-24 21:48:38
Document Index: 295085437

Matched Legal Cases: ['§2301', '§551', '§551', '§551', '§542', '§5', '§521', '§521', '§521']

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Commercial General Liability Checklist
An insurance policy form or endorsement may not be delivered or issued for delivery in this state unless the form has been filed with and approved by the commissioner. Each filing shall be made not later than the 60th day before the date of any use or delivery for use.
Large Risk Exemption
§2301.004, Texas Insurance Code
Policy forms for use with large risks are exempt from filing for prior approval if the forms are to be used with a "large risk". "Large Risk" is defined as an insured that has total insured property values of $5 million or more; an insured that has total annual gross revenues of $10 million or more; or an insured that has a total premium of $25,000 or more for property insurance, $25,000 or more for general liability insurance, or $50,000 or more for multiperil insurance.
Not Required to be Filed For Approval Unless Being Made a Part of the Policy
Language used in arbitration agreements is to be consistent with that of the policy: to wit, don't use the word "parties" when you actually mean insured(s) and insurer. Binding arbitration is okay. Arbitration agreements may be mandatory. Arbitration must be held in Texas for Texas policyholders unless mutually agree on an alternate. In general, arbitration language cannot be unjust, misleading or deceptive.
Cancellation & Nonrenewal of Certain Liability Insurance Coverage
§§551.051-551.055 and §551.004, Texas Insurance Code
Cancellation and nonrenewal of certain liability insurance policies.
§§551.151 & 551.152, Texas Insurance Code
If the policy is a claims made policy a disclosure to that effect must be prominently displayed on either or both the declaration sheet or the first page of the policy. The disclosure must be plainly readable bold type.
30-Day Extended Reporting Period Required
The insured must be given at least an automatic 30-day extended reporting period to report claims becoming known too late to report before the end of the policy period.
Policy Provision Required
A policy provision advising the insureds of a right to purchase an extended reporting endorsement. The policy must give the insured a minimum of thirty days to purchase the extended reporting endorsement and the minimum term of the extended reporting period must be at least one year. An extended reporting period unlimited in time must be available.
Prompt payment of claims. (1st Party Coverage - "Pay to," "indemnify," or "reimburse" the insured. Not "pay on behalf of".)
Notice of settlement of claim under casualty insurance policy. EXCEPTION - This article does not apply to a casualty policy that requires the insured's consent to settlement of a claim against the insured; or to fidelity, surety, or guaranty bonds.
Providing Certain Claims Information On Request
§§542.101-542.104, Texas Insurance Code; and Commissioner's Bulletin No. B-0043-05
If a policy form or endorsement contains language addressing the request or furnishing of claims information, it would need to comply with the applicable statute(s).
Commissioner's Bulletin No. B-0014-97
If filing is for a condominium association, it must comply with requirements set forth in Commissioner's Bulletin No. B-0014-97.
Chapter 151, Texas Insurance Code (HB 2093, 82nd Legislative Regular Session)
Affects indemnification agreements and additional insured provisions in certain construction contracts. Refer to this chapter to ensure compliance.
Continuous or Repeated Trigger / Revised Definition of Occurrence
If the coverage form or endorsement contains a provision amending the insuring agreement or the definition of occurrence to limit or eliminate coverage for continuous or repeated trigger losses, the restriction must be limited to that injury or damage "KNOWN" to the insured.
Policies may be amended to provide defense within limits of insurance, but only by endorsement. Must be fully disclosed to consumers and rates need to be adjusted accordingly. Forms/endorsements will not be approved until P&C Actuarial acknowledges that rates are acceptable.
Mobile Equipment Redefined
If Mobile Equipment redefined to include self propelled vehicles with certain types of permanently attached equipment (i.e. snow removal, street cleaning) of less than 1,000 pounds of gross weight, must include one of the following statements in either the coverage form being amended or the endorsement being submitted: 1) However, mobile equipment does not include any land vehicles that are subject to a compulsory or financial responsibility law or other motor vehicle insurance law in the state where it is licensed or principally garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law are considered autos; or 2) The intent is to cover vehicles not designated for use on a highway.
Pesticide/Herbicide Applicator Coverage
If Pesticide/Herbicide applicator coverage provided, must attach endorsement containing wording equivalent to CG 01 56.
Professional Liability Added To Commercial General Liability Policy
If Professional Liability Endorsement is attached to Commercial General Liability Policy, endorsement should match type of coverage of the form (i.e. ... occurrence, claims made).
Chapter 1806, Texas Insurance Code & 6/1/78 Board Letter
Tie-in sales may violate state law.
Punitive Exemplary Damages
Exclusions may be considered with appropriate rate analysis. A "rate analysis" is the company's actuarial justification for the rate consideration given, or not given, for use of the exclusion. This would include the reasons for the amount of any rate credit or the justification for the position that no rate credit is given. NOTE: Approval of a punitive/exemplary damage exclusion does not relieve an insurer of any contractual obligation to defend which may otherwise exist in the policy.
If insuring agreement specifies policy pays for compensatory damages, rate consideration may be necessary as policy may not cover non-compensatory damages such as punitive exemplary damages.
Definition of "abuse" in abuse, physical abuse, or molestation exclusion must be included. Must include wording, "For purposes of this endorsement, abuse means an act which is committed with the intent to cause harm".
Asbestos, Lead and Silica Exclusions
These types of exclusions require a rate analysis and may also require rate consideration. A "rate analysis" is the company's actuarial justification for the rate consideration given, or not given, for use of the exclusion. This would include the reasons for the amount of any rate credit or the justification for the position that no rate credit is given. Must attach a disclosure form to every policy to which the exclusion is attached and manual rules should reflect this requirement.
Transmissible Spongiform Encephalopathy (TSE) Exclusions
Exclusions for TSE, including all variations of the disease, must be limited to the following: Insureds that 1) import or distribute imported meat, meat by-products or any other bovine part or products containing bovine parts for resale; 2) utilize imported meat, meat by-products, blood or any other bovine part in their manufacturing or processing, or in any product that is injected, applied topically or ingested by humans or any other animal; or 3) operate in the chain of commerce (including but not limited to handling, processing, distributing, selling, or serving) for deer or elk, whether imported or not.
Exclusions - Disclosure Form Required
Required for subsidence, tobacco, electromagnetic field, PCB and drywall exclusions. Must attach a disclosure form to every policy to which the exclusion is attached. Disclosure form does not have to be signed by the insured.
Fully Earned Premium/Retention of Minimum Earned Premium
Fully Earned Premium / Retention of Minimum Earned Premium
Chapter 2251 & Chapter 2301, Texas Insurance Code and 28 TAC §5.9320, Texas Administrative Code
TDI will consider approving fully earned premium only for risks with exposure during a period certain, such as special events and weather policies.
TDI will consider approving minimum earned premium only if it is a nominal amount.
The company must file appropriate rates associated with a minimum or fully earned premium.
Coverage forms are prior approval. Change endorsements may be used to change insured address, etc. but may not be used to change, alter or "clarify" coverage in any way. Company must provide verification that the endorsement will not be used to change, alter, or clarify coverage.
Broad Form Nuclear Exclusion Endorsement
General Casualty Bulletins Nos. 547 & 548
If there is a Broad Form Nuclear Exclusion Endorsement or Nuclear Exclusion Endorsement, it must include definition of "waste" as per General Casualty Bulletins Nos. 547 & 548. (Not a Mandatory State Endorsement.)
Texas Changes - Airport Liability Endorsement
If using ISO forms, rules and rates, endorsement containing wording similar to CG 01 01 should be attached to all policies covering airport risks.
Texas Changes - Conditions Requiring Notice
Board Order No. 23080
Endorsement containing wording similar to CG 01 03 should be attached to all policies.
Chapter 1806, Texas Insurance Code
A brief written notice of suggested procedure to be followed by the policyholder in the event of a dispute concerning a policyholder's claim or premium.
Toll-Free number for the Texas Department of Insurance.
Insurer's requirement to maintain toll-free number to provide information concerning policies issued by the insurer and to accept complaints from policyholder. Article contains an exception for insurers whose gross initial premium receipts collected in this state are less than $2 million a year or to an insurer with regard to fidelity, surety, or guaranty bonds.
To satisfy requirements for §521.005, §§521.051 - 521.056, and §§521.101 - 521.103 noted above.
Texas Lloyds, Mutual, Reciprocals and Participating Stock Cos.
Special Policy Conditions
Requiring specific language be contained in policies issued by Lloyds, Mutuals, Reciprocals, and Participating Stock Companies.
Each insurer shall file with the Commissioner all rates, supplementary rating information, and reasonable and pertinent supporting information for risks written in this state.
Elimination of (a) Rates
Commissioner's Bulletin No. B-0022-95
Chapter 2251 does not provide for the filing of rates on an individual basis. Each insurer shall file with the Commissioner all rates, supplementary rating information, and reasonable and pertinent supporting information for risks written in this state.
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