Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4171 - Premium Surcharge Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 The association may be required to assess a premium surcharge under Insurance
					 Code §§
											2210.612,
					 2210.613, or
					 2210.6131 on all
					 policyholders of policies that cover association-insured property.
(b) Following a catastrophic event, insurers
					 may be required to assess a premium surcharge under Insurance Code §
											2210.6132 on all
					 policyholders of policies that cover insured property that is located in a
					 catastrophe area, including automobiles principally garaged in the catastrophe
					 area. This requirement applies to property and casualty insurers, the
					 association, the Texas FAIR Plan Association, Texas Automobile Insurance Plan
					 Association policies, affiliated surplus lines insurers, and includes property
					 and casualty policies independently procured from affiliated
					 insurers.
(c) For premium
					 surcharges described in subsection (a) of this section, this section and
					 §§5.4172, 5.4173, 5.4181, 5.4182, and 5.4184 - 5.4192 of this title
					 (relating to Premium Surcharge Definitions, Determination of the Contingent
					 Surcharge Percentage, Premiums to be Surcharged, Method for Determining the
					 Premium Surcharge, Application of Premium Surcharges, Mandatory Premium
					 Surcharge Collection, Remittance of Contingent Surcharges, Offsets, Association
					 Surcharges Not Subject to Commissions or Premium Taxes; Contingent Surcharges
					 not Subject to Commissions, Notification Requirements, Annual Premium Surcharge
					 Report, Premium Surcharge Reconciliation Report, and Data Collection,
					 respectively) apply to all policies written by the association.
(d) Contingent surcharges described in
					 subsection (b) of this section and §§5.4172, 5.4173, 5.4181, 5.4182,
					 and 5.4184 - 5.4192 of this title only apply to policies written for the
					 following types of insurance: commercial fire; commercial allied lines; farm
					 and ranch owners; residential property insurance; commercial multiple peril
					 (nonliability portion); private passenger automobile no fault (personal injury
					 protection (PIP)), other private passenger automobile liability, private
					 passenger automobile physical damage; commercial automobile no fault (PIP),
					 other commercial automobile liability, and commercial automobile physical
					 damage.
(e) This section and
					 §§5.4172, 5.4173, 5.4181, 5.4182, and 5.4184 - 5.4192 of this title
					 do not apply to:
(1) a farm mutual insurance
					 company operating under Insurance Code Chapter 911, unless the company is
					 acting as a fronting insurer, as defined by Insurance Code §
												221.001(c);
(2) a nonaffiliated county mutual fire
					 insurance company described by Insurance Code §
												912.310 that is
					 writing exclusively industrial fire insurance policies as described by
					 Insurance Code §
												912.310(a)(2);
(3) a mutual insurance company or a statewide
					 mutual assessment company engaged in business under Chapter 12 or 13, Title 78,
					 Revised Statutes, respectively, before those chapters' repeal by §18,
					 Chapter 40, Acts of the 41st Legislature, First Called Session (1929), as
					 amended by Section 1, Chapter 60, General Laws, Acts of the 41st Legislature,
					 Second Called Session (1929), that retains the rights and privileges under the
					 repealed law to the extent provided by those sections; and
(4) premium and policies issued by an
					 affiliated surplus lines insurer that a federal agency or court of competent
					 jurisdiction determines to be exempt from a premium surcharge under Insurance
					 Code Chapter 2210.