reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter A. General Provisions › Section 2751.003. Applicability of Other Laws

Sec. 2751.003.  APPLICABILITY OF OTHER LAWS.  (a)  Except as provided by Subsection (b), this code, other than this chapter, does not apply to the business of personal property title insurance.
(b)  The following laws apply to the business of personal property title insurance:
(1)  Section 2501.005, other than Subsections (a)(2)(A)-(C) of that section;
(2)  Section 2501.007;
(3)  Section 2502.001;
(4)  Sections 2502.051, 2502.053, and 2502.055;
(5)  Chapter 2551;
(6)  Chapter 2553;
(7)  Chapter 2601;
(8)  Chapter 2651;
(9)  Chapter 2652;
(10)  Section 2701.002;
(11)  Chapter 2703, except to the extent of any conflict with Subchapter B of this chapter;
(12)  Section 2704.001, other than Subdivisions (1) and (2) of that section;
(13)  Section 2704.002; and
(14)  Section 2704.004.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter A. General Provisions › Section 2751.004. General Rules

Sec. 2751.004.  GENERAL RULES.  The commissioner, in the manner prescribed by Subchapter A, Chapter 36, shall adopt rules as necessary to implement and enforce this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter B. Rates and Forms › Section 2751.051. Fixing and Promulgating Premium Rates and Forms

Sec. 2751.051.  FIXING AND PROMULGATING PREMIUM RATES AND FORMS.  (a)  The commissioner shall, in the manner prescribed by this subchapter:
(1)  fix and promulgate the premium rates to be charged by a title insurance company or by a title insurance agent for personal property title insurance policies under this chapter; and
(2)  prescribe the forms to be used in connection with those policies.
(b)  A premium may not be charged for a personal property title insurance policy or for another prescribed or approved form at a rate different than the rate fixed and promulgated by the commissioner.
(c)  The commissioner may not limit the number of forms for personal property title insurance if the forms meet the requirements of this title.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter B. Rates and Forms › Section 2751.052. Factors Considered in Fixing Premium Rates

Sec. 2751.052.  FACTORS CONSIDERED IN FIXING PREMIUM RATES.  (a)  In fixing premium rates, the commissioner shall consider all relevant income and expenses of title insurance companies and title insurance agents attributable to engaging in the business of personal property title insurance in this state.
(b)  The premium rates fixed by the commissioner must be reasonable, adequate, not unfairly discriminatory, nonconfiscatory, and not excessive.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter B. Rates and Forms › Section 2751.053. Hearing Required

Sec. 2751.053.  HEARING REQUIRED.  (a)  Before a premium rate may be fixed and forms adopted for personal property title insurance under this chapter, the department must provide reasonable notice and a hearing must be afforded to title insurance companies, title insurance agents, and the public.
(b)  A hearing under this section is subject to Subchapter B, Chapter 40, and is handled as a contested case under Chapter 2001, Government Code, in the manner prescribed by that subchapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter B. Rates and Forms › Section 2751.054. Commissioner Order

Sec. 2751.054.  COMMISSIONER ORDER.  (a)  Not later than the 90th day after the date of a hearing under Section 2751.053, the commissioner shall issue an order prescribing the rates and forms to be used in connection with personal property title insurance policies under this chapter.
(b)  The commissioner's order promulgating rates must be based on the evidence adduced at the hearing.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter B. Rates and Forms › Section 2751.055. Revisions to Rates and Forms; Hearing

Sec. 2751.055.  REVISIONS TO RATES AND FORMS; HEARING.  (a)  A title insurance company may apply to the department in the manner prescribed by the commissioner for approval of a new or revised personal property title insurance form or a change in a rate associated with such a form.  The commissioner may approve or disapprove an application after a hearing conducted in the manner prescribed by Section 2751.053.
(b)  A hearing under this section must be conducted not later than the 60th day after the date on which the department receives the application.
(c)  The commissioner shall approve or disapprove the application not later than the 90th day after the date of the hearing under Subsection (a).
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter C. Powers and Duties of Insurers and Agents › Section 2751.101. Issuance of Policies

Sec. 2751.101.  ISSUANCE OF POLICIES.  A title insurance company may issue a personal property title insurance policy in this state if the policy covers personal property or fixtures, or a secured party or other insured, or a debtor, located in this state.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter C. Powers and Duties of Insurers and Agents › Section 2751.102. Use of Forms

Sec. 2751.102.  USE OF FORMS.  (a)  A title insurance company or title insurance agent shall use the forms prescribed by the commissioner in issuing a personal property title insurance policy.
(b)  Unless authorized by rule adopted by the commissioner, an insurer may not enter into a contract or other agreement concerning a personal property title insurance policy if the contract or other agreement is not expressed in the policy.  A contract or agreement prohibited by this subsection is void.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter C. Powers and Duties of Insurers and Agents › Section 2751.103. Agents

Sec. 2751.103.  AGENTS.  A title insurance agent or direct operation may accept orders for insurance products authorized under this chapter.  The agent or direct operation shall act according to the authority granted to the agent or direct operation by the title insurance company issuing the product.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle F - Title Insurance for Certain Personal Property Interests › Chapter 2751 - Title Insurance for Personal Property Interests › Subchapter C. Powers and Duties of Insurers and Agents › Section 2751.104. Agent Compensation

Sec. 2751.104.  AGENT COMPENSATION.  (a)  The title insurance company that issues a personal property title insurance policy shall pay the title insurance agent that places the order for the policy a total commission equal to 30 percent of the premium charged for the personal property title insurance or personal property title insurance product authorized under this chapter.
(b)  Notwithstanding Subsection (a), a title insurance company may not pay a commission to a title insurance agent for an application for coverage that is placed with the title insurance company directly.
(c)  A commission paid under Subsection (a) does not constitute a violation of Section 2502.051.
Added by Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3501 - Credit Involuntary Unemployment Insurance › Section 3501.001. Definition

INSURANCE CODE
TITLE 12. OTHER COVERAGE
CHAPTER 3501.  CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE
Sec. 3501.001.  DEFINITION.  In this chapter, "credit involuntary unemployment insurance" means insurance that indemnifies a debtor for installment or other periodic payments on an indebtedness while the debtor is involuntarily unemployed. The term includes policy forms and endorsements that define involuntary unemployment to provide coverage and a premium charge for interruption or reduction of a debtor's income during periods of leave, whether paid or unpaid, authorized by the federal Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et seq.), as amended, or other state or federal law.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3501 - Credit Involuntary Unemployment Insurance › Section 3501.002. Authorization

Sec. 3501.002.  AUTHORIZATION.  (a)  Any insurer authorized to write any form of casualty insurance in this state may also write group or individual credit involuntary unemployment insurance.
(b)  Credit involuntary unemployment insurance may be written alone or in conjunction with credit life insurance, credit accident and health insurance, or both, in a policy issued by an authorized insurer.
(c)  Credit involuntary unemployment insurance may not be written in contravention of Chapter 15, Business & Commerce Code.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3501 - Credit Involuntary Unemployment Insurance › Section 3501.003. Rates and Forms

Sec. 3501.003.  RATES AND FORMS.  Rates and forms for credit involuntary unemployment insurance must be set and filed in accordance with Chapters 2251 and 2301 and Article 5.13-2.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter A. General Provisions › Section 3502.001. Applicability of Chapter

Sec. 3502.001.  APPLICABILITY OF CHAPTER.  This chapter applies only to mortgage guaranty insurance and does not affect any other provision of this code.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter A. General Provisions › Section 3502.002. Applicability of Other Law

Sec. 3502.002.  APPLICABILITY OF OTHER LAW.  (a)  This code and other state laws apply to the business of mortgage guaranty insurance.
(b)  This chapter controls to the extent of any conflict with another provision of this code or other state law.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter A. General Provisions › Section 3502.003. Mortgage Guaranty Insurance Defined

Sec. 3502.003.  MORTGAGE GUARANTY INSURANCE DEFINED.  In this chapter, "mortgage guaranty insurance" means insurance against:
(1)  financial loss because of nonpayment of principal, interest, and other amounts agreed to be paid under the terms of a note, bond, or other evidence of indebtedness that is secured by an authorized real estate security, provided the improvement on the real estate is:
(A)  one or more residential buildings designed to be occupied by not more than four families;
(B)  a condominium unit; or
(C)  one or more buildings designed to be occupied by five or more families or for industrial or commercial purposes; or
(2)  financial loss because of nonpayment of rent and other amounts agreed to be paid under the terms of a written lease for the possession, use, or occupancy of real estate, provided the improvement on the real estate is one or more buildings designed to be occupied for industrial or commercial purposes.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter A. General Provisions › Section 3502.004. Authorized Real Estate Security Defined

Sec. 3502.004.  AUTHORIZED REAL ESTATE SECURITY DEFINED.  (a)  In this chapter, "authorized real estate security" means:
(1)  a proprietary lease and a stock membership certificate issued to a tenant stockholder or resident member of a fee simple cooperative housing corporation as defined in Section 216, Internal Revenue Code of 1986; or
(2)  a mortgage, deed of trust, wraparound mortgage, or other instrument that constitutes a first lien or charge on real estate or is considered to be the equivalent of a first lien or charge on real estate by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Finance Board, a successor of one of those entities, an agency of this state, or a federal agency, provided:
(A)  the improvement on the real estate is a building or buildings designed to be occupied as specified by Section 3502.003(1); and
(B)  the real estate loan is a type of loan that is:
(i)  authorized to be made by a bank, savings and loan association, credit union, or insurer that is supervised and regulated by a department of this state or a federal agency;
(ii)  authorized to be made by a mortgage banker that is an approved seller-servicer of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or a successor of one of those entities; or
(iii)  approved by the federal secretary of housing and urban development for participation in a mortgage insurance program.
(b)  The lien on real estate described by Subsection (a)(2) may be subject and subordinate to:
(1)  the lien of a public bond, assessment, or tax if there is not a delinquent installment, call, or payment of or under the bond, assessment, or tax;
(2)  an outstanding mineral, oil, or timber right, right-of-way, easement or right-of-way support, sewer right, building restriction, other restriction or covenant, or other condition or regulation of use; or
(3)  an outstanding lease on the real estate under which rents or profits are reserved to the owner.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter B. Mortgage Guaranty Insurers › Section 3502.051. General Eligibility to Write Mortgage Guaranty Insurance

Sec. 3502.051.  GENERAL ELIGIBILITY TO WRITE MORTGAGE GUARANTY INSURANCE.  (a)  An insurer that writes anywhere any class of insurance other than mortgage guaranty insurance may not be issued or continue to hold a certificate of authority to write mortgage guaranty insurance in this state.
(b)  A mortgage guaranty insurer that writes anywhere the class of mortgage guaranty insurance described by Section 3502.003(1)(C) or (2) may not be issued or continue to hold a certificate of authority to write in this state the class of mortgage guaranty insurance described by Section 3502.003(1)(A) or (B).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter B. Mortgage Guaranty Insurers › Section 3502.052. Eligibility of Foreign or Alien Insurer to Write Mortgage Guaranty Insurance

Sec. 3502.052.  ELIGIBILITY OF FOREIGN OR ALIEN INSURER TO WRITE MORTGAGE GUARANTY INSURANCE.  The department may not issue a certificate of authority to a foreign or alien insurer writing mortgage guaranty insurance unless the insurer demonstrates a satisfactory operating experience in the insurer's state of domicile.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter B. Mortgage Guaranty Insurers › Section 3502.053. Discrimination Prohibited

Sec. 3502.053.  DISCRIMINATION PROHIBITED.  In extending or issuing mortgage guaranty insurance, a mortgage guaranty insurer may not discriminate on the basis of the applicant's sex, marital status, race, color, creed, national origin, disability, or age or solely on the basis of the geographic location of the property to be insured unless:
(1)  the discrimination related to geographic location is for a business purpose that is not a mere pretext for unfair discrimination; or
(2)  the refusal, cancellation, or limitation of the insurance is required by law or regulatory mandate.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter C. Forms and Rates › Section 3502.101. Rate Filings

Sec. 3502.101.  RATE FILINGS.  (a)  Not later than the 15th day before the date a mortgage guaranty insurer uses a rate or supplementary rate information in this state, the insurer must file the rate and supplementary rate information, and any changes to the rate or supplementary rate information, with the department.
(b)  The rate filing must include adequate supporting data, including:
(1)  information on:
(A)  past and prospective loss experience in this state and outside the state;
(B)  catastrophe hazards;
(C)  expenses of operation; and
(D)  a reasonable margin for profit and contingencies;
(2)  an explanation of the insurer's interpretation of any statistical data on which the insurer relied;
(3)  an explanation and description of the methods used in making the rates; and
(4)  certification by an appropriate official of the insurer relating to the appropriateness of the charges, rates, or rating plans based on reasonable assumptions and accompanied by adequate supporting information.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter C. Forms and Rates › Section 3502.102. Rate Standards

Sec. 3502.102.  RATE STANDARDS.  (a)  A mortgage guaranty insurance rate, rating plan, or charge may not be excessive, inadequate, or unfairly discriminatory and must be reasonable with respect to the benefits provided.
(b)  This chapter does not require the department to:
(1)  establish standard and absolute rates or a single and uniform rate for each risk or risks; or
(2)  compel all insurers to adhere to rates previously filed by other insurers.
(c)  The department may accept different rates for different insurers for the same risk or risks on mortgage guaranty insurance.  The department may accept different rates for different insurers as filed by any authorized insurer unless the department finds that the filing does not meet the requirements of this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter C. Forms and Rates › Section 3502.103. Recording and Reporting of Loss and Expense Experience and Other Data

Sec. 3502.103.  RECORDING AND REPORTING OF LOSS AND EXPENSE EXPERIENCE AND OTHER DATA.  (a)  The commissioner shall adopt reasonable rules and statistical plans for the recording and reporting of loss experience and other required data by a mortgage guaranty insurer.  The rules and plans must ensure that each insurer's total loss and expense experience is made available in the form and with the detail the commissioner considers necessary.
(b)  Each mortgage guaranty insurer shall use the statistical plans adopted under this section to record and report loss experience and other required data in accordance with the rules adopted by the commissioner.
(c)  The commissioner may modify statistical plans adopted under this section.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter C. Forms and Rates › Section 3502.104. Policy Form Filings

Sec. 3502.104.  POLICY FORM FILINGS.  (a)  Except as provided by Subsection (b), not later than the 15th day before the date a mortgage guaranty insurer uses a policy form, related form, classification, or rule in this state, the insurer must file the form, classification, or rule with the department.
(b)  This subsection applies only to a policy form, related form, classification, or rule a mortgage guaranty insurer uses in this state for a policy that provides coverage for a pool or group of loans in connection with the issuance of mortgage-backed securities or bonds.  Not later than the 15th day after the date the insurer uses the form, classification, or rule, the insurer shall file the form, classification, or rule with the department.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter C. Forms and Rates › Section 3502.105. Policy Form Standards

Sec. 3502.105.  POLICY FORM STANDARDS.  The commissioner shall disapprove a mortgage guaranty insurance policy form if the form:
(1)  violates this code or rules adopted by the commissioner; or
(2)  contains a provision that encourages misrepresentation or is unjust, unfair, inequitable, misleading, deceptive, or contrary to law or to the public policy of this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter C. Forms and Rates › Section 3502.106. Claim Against Residential Borrower

Sec. 3502.106.  CLAIM AGAINST RESIDENTIAL BORROWER.  A mortgage guaranty insurance policy may not contain a provision that allows subrogation rights or any other claim by the insurer against the borrower for a deficiency arising from a foreclosure sale of a single-family dwelling that is occupied by the borrower as the borrower's principal residence.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter C. Forms and Rates › Section 3502.107. Exemption; Withdrawal of Approval

Sec. 3502.107.  EXEMPTION; WITHDRAWAL OF APPROVAL.  (a)  A policy form, related form, classification, or rule a mortgage guaranty insurer uses in this state, including for a policy described by Section 3502.104(b), is exempt from department approval.
(b)  If the commissioner finds, after notice and hearing, that the filing of a policy form, related form, classification, or rule is no longer in the best interest of the public, the commissioner may issue an order:
(1)  suspending the exemption under Subsection (a) with respect to one or more insurers that filed the form, classification, or rule; and
(2)  requiring each affected insurer to cease and desist using the form, classification, or rule, as the commissioner specifies.
(c)  If the commissioner finds, after notice and hearing, that a filed policy form or rate no longer meets the requirements of this code, the commissioner may issue an order withdrawing approval of the form or rate.  The order must specify the reasons the form or rate no longer meets the requirements.  An order under this subsection may not take effect until the 30th day after the date the commissioner issues the order.
(d)  The commissioner must provide to each insurer that filed a form, classification, rule, or rate that is the subject of a hearing under this section notice of the hearing not later than the 20th day before the date of the hearing.  The notice must specify the matters to be considered at the hearing.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter C. Forms and Rates › Section 3502.108. Rules

Sec. 3502.108.  RULES.  (a)  The commissioner may, after notice and hearing, adopt reasonable rules:
(1)  relating to the minimum standards for coverage under policy forms consistent with the purpose of this chapter and the public policy of this state; and
(2)  necessary to establish guidelines, procedures, methods, standards, and criteria by which the types of forms and documents submitted to the department are to be reviewed and acted on by the department.
(b)  The department may establish requirements for data and information filed under this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter D. Financial Requirements › Section 3502.151. Definition

Sec. 3502.151.  DEFINITION.  In this subchapter, "contingency reserve" means an additional premium reserve established to protect policyholders against the effect of adverse economic cycles or losses.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter D. Financial Requirements › Section 3502.152. Capital and Surplus Requirements

Sec. 3502.152.  CAPITAL AND SURPLUS REQUIREMENTS.  An insurer may not write mortgage guaranty insurance unless the insurer has the minimum capital and surplus required by Chapter 861 for a general casualty company.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter D. Financial Requirements › Section 3502.153. Unearned Premium Reserve

Sec. 3502.153.  UNEARNED PREMIUM RESERVE.  (a)  Except as provided by Subsection (b), the unearned premium reserve on mortgage guaranty insurance must be computed in accordance with this code.
(b)  For a policy covering a risk period of more than one year, the unearned premium reserve must be computed in accordance with standards adopted by the commissioner after appropriate hearings.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter D. Financial Requirements › Section 3502.154. Loss Reserve

Sec. 3502.154.  LOSS RESERVE.  A mortgage guaranty insurer shall determine the loss reserve using the case basis method.  The loss reserve must include a reserve for claims incurred but not reported.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter D. Financial Requirements › Section 3502.155. Contingency Reserve

Sec. 3502.155.  CONTINGENCY RESERVE.  (a)  In addition to the capital, surplus, and reserves required by Sections 3502.152, 3502.153, and 3502.154, a mortgage guaranty insurer shall establish a contingency reserve and report the contingency reserve as a liability in the insurer's financial statements.
(b)  To establish and maintain the contingency reserve, the mortgage guaranty insurer shall annually contribute to the contingency reserve 50 percent of the earned premiums on the insurer's mortgage guaranty insurance business.  The reserved earned premiums may be released to the insurer's surplus annually after the premiums have been maintained for 120 months.
(c)  In addition, the mortgage guaranty insurer may withdraw premiums from the contingency reserve in any year for which the insurer can demonstrate to the department that the incurred losses for that year exceed 35 percent of the corresponding earned premiums for that year.  The insurer shall reduce any subsequent annual release to surplus from the established contingency reserve by an amount equal to the amount withdrawn and released for the losses.  The insurer shall deduct from subsequent annual releases any balance that exceeds the normal annual release from the contingency reserve.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter D. Financial Requirements › Section 3502.157. Limit on Insurance of Certain Loans

Sec. 3502.157.  LIMIT ON INSURANCE OF CERTAIN LOANS.  (a)  In this section, "contiguous" means not separated by more than one-half mile.
(b)  A mortgage guaranty insurer may not insure loans secured by properties in a single housing tract or a contiguous tract in an amount that exceeds 10 percent of the insurer's capital, surplus, and contingency reserve.
(c)  In determining the amount of risk under this section, a mortgage guaranty insurer shall deduct from the total direct risk insured any applicable reinsurance in an assuming insurer authorized to engage in the business of mortgage guaranty insurance in this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter E. Lender Powers and Duties › Section 3502.201. Definition

Sec. 3502.201.  DEFINITION.  In this subchapter, "lender" has the meaning assigned by Section 549.001.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter E. Lender Powers and Duties › Section 3502.202. Notice of Borrower's Right to Cancel

Sec. 3502.202.  NOTICE OF BORROWER'S RIGHT TO CANCEL.  (a)  A lender that requires a borrower to purchase mortgage guaranty insurance shall provide annually to the borrower a copy of the following written notice printed in at least 10-point boldfaced type:
"NOTICE OF RIGHT TO CANCEL PRIVATE MORTGAGE INSURANCE:  If you currently pay private mortgage insurance premiums, you may have the right to cancel the insurance and cease paying premiums.  This would permit you to make a lower total monthly mortgage payment and to possibly receive a refund of any unearned premiums on the policy. In most cases, you have the right to cancel private mortgage insurance if the principal balance of your loan is 80 percent or less of the current fair market appraised value of your home.  If you want to learn whether you are eligible to cancel this insurance, please contact us at (address and telephone number of lender) or the Texas Department of Insurance consumer help line at (the appropriate toll-free telephone number)."
(b)  If federal law requires a lender to provide a borrower with a written notice containing substantially the same information required by Subsection (a), a lender that provides the notice required by federal law within the period prescribed by federal law satisfies the notice requirement of Subsection (a).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter E. Lender Powers and Duties › Section 3502.203. Refund of Premium

Sec. 3502.203.  REFUND OF PREMIUM.  A lender that receives a refund of an unearned mortgage guaranty insurance premium paid by a borrower shall remit the refund to the borrower not later than the 10th business day after the date the lender receives the refund.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3502 - Mortgage Guaranty Insurance › Subchapter E. Lender Powers and Duties › Section 3502.204. Advertising of "Insured Loans

Sec. 3502.204.  ADVERTISING OF "INSURED LOANS."  A bank, savings and loan association, insurer, or approved seller-servicer of the Federal National Mortgage Association, any of whose authorized real estate securities are insured by a mortgage guaranty insurer, may not state in a brochure, pamphlet, or report or any form of advertising that the real estate loans of the bank, savings and loan association, insurer, or seller-servicer are "insured loans" unless:
(1)  the brochure, pamphlet, report, or advertising also:
(A)  clearly states that the loans are insured by private insurers; and
(B)  lists the names of the private insurers; and
(2)  the insurance on the real estate loans is written by an insurer authorized to write that insurance in this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter A. Certain Required or Permitted Obligations › Section 3503.001. Definition

Sec. 3503.001.  DEFINITION.  In this subchapter, "obligation" means a bond, undertaking, recognizance, guaranty, or other obligation that is by law or by a charter, ordinance, or rule of a municipality, board, body, organization, court, or public officer required or permitted to be made, given, tendered, or filed to guarantee the performance of an act, duty, or obligation or the refraining from an act.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter A. Certain Required or Permitted Obligations › Section 3503.002. Execution of Obligation by Surety Company

Sec. 3503.002.  EXECUTION OF OBLIGATION BY SURETY COMPANY.  (a)  A surety company authorized to engage in business in this state may execute an obligation.
(b)  Except as provided by Section 3503.004 or 3503.005, the execution of an obligation by a surety company under Subsection (a) is in full compliance with each law, charter, ordinance, or rule that requires:
(1)  the obligation to be executed by one or more sureties; or
(2)  the executing sureties to possess any qualification, including the requirement that a surety be a resident, householder, or freeholder.
(c)  Each municipality, board, body, organization, court, public officer, and head of department shall accept and treat an obligation executed by a surety company under Subsection (a) as fully complying with each law, charter, ordinance, or rule described by Subsection (b).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter A. Certain Required or Permitted Obligations › Section 3503.003. Designation of Agent by Corporate Surety Required

Sec. 3503.003.  DESIGNATION OF AGENT BY CORPORATE SURETY REQUIRED.  Notwithstanding Section 3503.002, in specifications by a municipality for work or supplies for which sealed bids are required, the municipality may require that a corporate surety tender designate, in a manner satisfactory to the municipality, an agent:
(1)  who is a resident of the county in which the municipality is located; and
(2)  to whom any required notices may be delivered and on whom process may be served in matters arising out of the suretyship.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter A. Certain Required or Permitted Obligations › Section 3503.004. Written Certification of Reinsurance as Condition of Acceptance of Obligation

Sec. 3503.004.  WRITTEN CERTIFICATION OF REINSURANCE AS CONDITION OF ACCEPTANCE OF OBLIGATION.  (a)  If an obligation is in an amount that exceeds 10 percent of the surety company's capital and surplus, the municipality, board, body, organization, court, or public officer may require, as a condition of accepting the obligation, written certification that the surety company has reinsured the portion of the risk that exceeds 10 percent of the surety company's capital and surplus with one or more reinsurers who are authorized, accredited, or trusteed to engage in business in this state.
(b)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 1147, Sec. 14.002, eff. September 1, 2011.
(c)  On request, the department shall provide the amount of the allowed capital and surplus, as of the date of the last annual statutory financial statement, for a surety company or reinsurer authorized to engage in business in this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 14.002, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter A. Certain Required or Permitted Obligations › Section 3503.005. Additional Requirements for Certain Bonds

Sec. 3503.005.  ADDITIONAL REQUIREMENTS FOR CERTAIN BONDS.  (a)  A bond that is made, given, tendered, or filed under Chapter 53, Property Code, or Chapter 2253, Government Code, may be executed only by a surety company that is authorized to write surety bonds in this state.  If the amount of the bond exceeds $100,000, the surety company must also:
(1)  hold a certificate of authority from the United States secretary of the treasury to qualify as a surety on obligations permitted or required under federal law; or
(2)  have obtained reinsurance for any liability in excess of $1 million from a reinsurer that:
(A)  is an authorized reinsurer in this state; or
(B)  holds a certificate of authority from the United States secretary of the treasury to qualify as a surety or reinsurer on obligations permitted or required under federal law.
(b)  To determine whether the surety on the bond or the reinsurer holds a certificate of authority from the United States secretary of the treasury, a party may conclusively rely on the list published in the Federal Register by the United States Department of the Treasury, covering the date on which the bond was executed, of the companies holding certificates of authority as acceptable sureties on federal bonds and as acceptable reinsuring companies.  A purchaser, insurer of title, or lender acquiring or insuring an interest in or title to real property may also conclusively rely on, and is protected by, a statement on a recorded bond or a sworn, recorded statement by the surety that refers to the specific recorded bond and states that, at the time the bond was executed, the surety complied with Subsection (a)(1) or (2).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 14.001, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter B. Prompt Payment of Construction Payment Bonds › Section 3503.051. Definitions

Sec. 3503.051.  DEFINITIONS.  In this subchapter:
(1)  "Claimant" means a person directly entitled to payment under a construction payment bond.
(2)  "Construction payment bond" means a surety agreement or obligation issued to guarantee or assure payment by a principal obligor for work performed or materials supplied or specially fabricated for a public or private construction project.
(3)  "Notice of claim" means a written notification by a claimant who makes a claim for payment from the surety company.  The term does not include a routine statutory notice required by Section 53.056 or 53.057, Property Code, or Section 2253.047, Government Code.
(4)  "Surety company" means an authorized surety or guaranty company that executes and delivers a construction payment bond as a surety for a principal obligor.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 1, eff. January 1, 2022.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter B. Prompt Payment of Construction Payment Bonds › Section 3503.052. Construction of Subchapter

Sec. 3503.052.  CONSTRUCTION OF SUBCHAPTER.  (a)  This subchapter shall be construed to encourage prompt payment of just claims made under construction payment bonds of surety companies.  This subchapter does not foreclose any other remedy available to a claimant by law or contract.
(b)  This subchapter may not be construed to:
(1)  create a private cause of action;
(2)  be a precondition to judicially enforcing an obligation under a construction payment bond;
(3)  diminish any other obligation of a surety company that exists by law; or
(4)  prohibit a surety company from asserting a defense against a construction payment bond claim in a proceeding to enforce a claim.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter B. Prompt Payment of Construction Payment Bonds › Section 3503.053. Certain Terms Void

Sec. 3503.053.  CERTAIN TERMS VOID.  A term contained in a construction payment bond that is inconsistent with this subchapter is void.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter B. Prompt Payment of Construction Payment Bonds › Section 3503.054. Notice of Claim; Acknowledgment and Investigation

Sec. 3503.054.  NOTICE OF CLAIM; ACKNOWLEDGMENT AND INVESTIGATION.  (a)  A surety company that issues a construction payment bond shall, not later than the 15th day after the date of receipt of notice of claim under the bond:
(1)  acknowledge receipt of the claim;
(2)  begin any review or investigation necessary to determine whether the surety company is obligated to satisfy the claim under the bond; and
(3)  request from the claimant each document, item of information, accounting, statement, or form that the surety company reasonably believes, at that time, will be required from the claimant.
(b)  If a construction payment bond provides an address to which a notice of claim under the bond should be submitted, the notice is effective on the date the notice is received at that address.
(c)  This subchapter does not exempt a claimant from complying with any applicable statutory or contractual notice requirement.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter B. Prompt Payment of Construction Payment Bonds › Section 3503.055. Notice of Acceptance or Rejection of Claim

Sec. 3503.055.  NOTICE OF ACCEPTANCE OR REJECTION OF CLAIM.  (a)  Except as provided by Subsection (c), a surety company shall notify a claimant in writing of the acceptance or rejection of a claim not later than the 30th day after the date the company receives all documents, items of information, accountings, statements, and forms requested by the company under Section 3503.054.
(b)  If the surety company rejects all or part of the claim, the notice required by Subsection (a) must state in specific terms the reasons for the rejection that are known by the company at the time of the rejection.
(c)  If the surety company is unable to accept or reject the claim within the period specified by Subsection (a), the company, in that same period, shall notify the claimant in writing that the company is unable to accept or reject the claim.  The notice provided under this subsection must:
(1)  state the reasons for which the company needs additional time to accept or reject the claim; and
(2)  include a request for any additional information the company reasonably needs to process the claim.
(d)  Not later than the 30th day after the date a surety company notifies a claimant under Subsection (c), the company shall notify the claimant in writing of the acceptance or rejection of the claim.  If the company rejects all or part of the claim, the company shall state in specific terms the reasons for the rejection that are known by the company at the time of the rejection.
(e)  In addition to any other contractual or statutory basis for denying a claim, the surety company may reject all or part of a claim:
(1)  that is the subject of a legitimate dispute between the principal obligor and the claimant; or
(2)  for which the claimant has failed to provide supporting documents or information the company reasonably requested.
(f)  The time limits provided by this section and Section 3503.054 may be varied by any statute requiring a construction payment bond.
(g)  This section does not preclude a surety company from asserting any defense in an action brought by a claimant on a construction payment bond if the company makes a good faith effort to inform the claimant in accordance with this section of the reasons for rejecting all or part of the claim.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter B. Prompt Payment of Construction Payment Bonds › Section 3503.056. Payment of Claim

Sec. 3503.056.  PAYMENT OF CLAIM.  (a)  If a surety company notifies a claimant under Section 3503.055 that the company accepts a claim or part of a claim, the company shall pay the claim not later than the 15th day after the date of the notice.
(b)  If payment of the claim or part of the claim is conditioned on the execution of a document or performance of an act by the claimant, the surety company shall pay the claim not later than the seventh day after the date the company receives the executed document or evidence that the act has been performed.
(c)  For purposes of this section, payment of a claim occurs when the surety company places the company's check or draft in the United States mail properly addressed to the claimant or the claimant's representative.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.