reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9913 - Authority of Agents and Commissions

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 Upon request, an agent, may assist any owner of residential property in
					 completion and submission of an application for insurance on forms prescribed
					 by the Association.
(b) No agent,
					 even if licensed to represent one or more member insurers of the Association
					 with respect to policies not underwritten by the Association, shall hold
					 himself out as an agent of the Association.
(c) A commission shall be paid pursuant to a
					 commission schedule set by the Governing Committee and approved by the
					 Commissioner. The commission shall be based on paid gross written premiums and
					 subject to adjustment based on policy changes and cancellations. The agent
					 shall remit the gross premium collected on an Association policy to the
					 Association, and the Association will pay the commission.
(d) The Association shall establish minimum
					 requirements and performance standards for agents who submit applications to
					 the Association or renew business in the Association. These requirements and
					 standards shall be designed to ensure the efficient transmission of
					 applications, forms, notices, and money from the agent to the Association and
					 visa versa, ensure the efficient operation of the Association, and the
					 efficient and convenient servicing of applicants and policyholders. The
					 Association may require that agents demonstrate and certify compliance with
					 these requirements and standards. The Association shall have the power to bar
					 an agent from submitting new applications to or renewing business in the
					 Association if the agent refuses to demonstrate and certify compliance with
					 these requirements and standards or the agent violates any of these
					 requirements or standards. Such minimum requirements and performance standards
					 shall be binding upon any agent as a condition of such agent's request for an
					 inspection, submission of an application, receipt of commissions from the
					 Association, or other act in connection with the Association. The Association
					 may contract with agents who meet the Association's standards and may limit
					 applications to the Association to those agents. The Association shall not be
					 required to appoint agents.
(e) The
					 Association may limit communications with agents to website communications
					 only.
(f) An applicant may only
					 apply to the Association through an agent.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9914 - Maximum Limits of Liability and Limitations

Current through Reg. 49, No. 28; July 12, 2024
(a) The maximum limits of liability for
					 residential property insurance per location through the Association shall be
					 $1,000,000 dwelling - $500,000 contents. The Association is authorized to
					 reinsure some or all risks that are within or at these maximum
					 limits.
(b) The Association may not
					 provide windstorm and hail insurance coverage for a risk eligible for that
					 coverage under Insurance Code Article 21.49.
(c) The Association may issue a policy that
					 includes coverage for an amount in excess of a liability limit set forth in
					 subsection (a) of this section, if the Association first obtains, from a
					 reinsurer approved by the Commissioner, reinsurance for the full amount of
					 policy exposure above the limits for any given type of risk.
(d) The premium charged by the Association
					 for the excess coverage shall be equal to the amount of the reinsurance premium
					 charged to the Association by the reinsurer, plus any payment to the
					 Association that is approved by the Commissioner.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9915 - Inspections

Current through Reg. 49, No. 28; July 12, 2024
(a) The underwriting rules shall determine
					 the inspection criteria for risks to be written by the Association. The
					 Association may issue a policy of residential property insurance on certain
					 types of risks without an inspection in accordance with the underwriting
					 rules.
(b) An inspection shall be
					 made only of property requiring an inspection to determine eligibility for
					 Association coverage in accordance with the underwriting rules. The inspection
					 shall be free of charge to the applicant. An inspection request may be made by
					 the owner, his/her representative, or an agent.
(c) All inspection reports shall be in
					 writing and shall contain the information necessary to determine eligibility
					 for coverage pursuant to the Association's underwriting rules. After the
					 inspection report has been completed, a copy of the completed inspection report
					 and any photograph indicating the pertinent features of the building
					 construction, maintenance, and occupancy shall be sent within ten days to the
					 Association.
(d) The inspection
					 report shall contain information describing:
(1) occupancy,
(2) information necessary for underwriting
					 and rating,
(3) construction;
					 and
(4) physical
					 deficiencies.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9916 - Application Forms, Underwriting Rules, Rates, Policy Forms and Endorsements

Current through Reg. 49, No. 28; July 12, 2024
(a) The Association shall adopt application
					 forms. The forms shall be designed to obtain all of the information necessary
					 for underwriting and rating the risk. Such forms may also elicit additional
					 information that the Association may use to revise its rates, underwriting
					 rules, policy forms and endorsements. An application is considered complete
					 when every question on the application form is answered fully and is signed by
					 a proposed named insured and submitted by the agent. The Association may
					 independently verify the information in an application or request additional
					 information from the applicant or other sources.
(b) The Association shall file with the
					 Commissioner for approval the underwriting rules for Association policies prior
					 to use. Such underwriting rules shall determine whether a residential property
					 is an insurable risk eligible for Association coverage, and if eligible, what
					 coverages, policy forms and endorsements can be offered for that risk. The
					 underwriting rules shall be subject to the underwriting standards set forth in
					 §§
											5.9914,
					 5.9915 and
					 5.9917
					 of this subchapter (relating to Maximum Limits of Liability and Limitations,
					 Inspections, and Application, Binder, Policy Issuance, Renewal and
					 Cancellation) and any other requirements set forth in the underwriting rules.
					 Such rules shall include under what circumstances the Association may grant an
					 agent permission to bind coverage.
(c) The Association shall file with the
					 Commissioner for approval the proposed rates and supplemental rate information,
					 including a manual of rating rules, to be used in connection with the issuance
					 of Association policies or endorsements. No policies or endorsements shall be
					 issued unless the Commissioner has approved the rates to be applied to the
					 policy or endorsement:
(1) The Association
					 rates must be set in an amount sufficient to carry all claims to maturity and
					 to meet all expenses incurred in the writing and servicing of the
					 business.
(2) The rate filing shall
					 additionally provide for:
(A) premium
					 installment payment plans including a servicing fee for those policyholders
					 electing to use such a plan; and
(B) deductible options such as different
					 dollar amounts, different percentages of property coverage limits, that may
					 vary by coverage or peril insured against.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9917 - Application, Binder, Policy Issuance, Renewal and Cancellation

Current through Reg. 49, No. 28; July 12, 2024
(a) An agent shall maintain and submit, at
					 the request of the Association, written documentation that indicates that:
(1) At least two insurance companies, not in
					 the same holding company as defined in Insurance Code Article 21.49-1, licensed
					 to write and actually writing residential property insurance in Texas have
					 declined to provide residential property insurance (the names of the two
					 insurance companies shall be identified), and the applicant has not received a
					 valid offer of comparable residential property insurance from an insurance
					 company licensed in Texas, not including any surplus lines insurers;
					 and
(2) There are no outstanding
					 taxes, assessments, penalties or charges with respect to the property to be
					 insured, except those covered under a properly filed deferral affidavit in
					 compliance with §33.06 of the Property Tax Code; and
(3) The applicant has not received written
					 notice from an authorized public entity stating that the property is in
					 violation of any building, housing, air pollution, sanitation, health, fire or
					 safety code, ordinance or rule.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9918 - Servicing of Policies

Current through Reg. 49, No. 28; July 12, 2024
(a) In accordance
					 with the provisions of §
											5.9912(e)
					 of this subchapter (relating to Governing Committee) the Association shall have
					 the following options for servicing Association policies:
(1) Contract with one or more member insurers
					 to service some or all of the policies.
(2) Contract with one or more non-member
					 insurers to service some or all of the policies;
(3) Contract with one or more private
					 non-insurers to provide some or all of the servicing of Association
					 policies;
(4) Contract with one or
					 more insurance pools for property and/or casualty insurance established by
					 Texas law to provide some or all of the servicing of Association policies;
					 and
(5) Service some or all of the
					 Association policies itself.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9919 - Right to Appeal

Current through Reg. 49, No. 28; July 12, 2024
(a) Any applicant
					 or affected insurer shall have the right to appeal any action or decision of
					 the Association or inspector to the staff of the Association or its
					 administrator. Each denial of insurance to an applicant shall be accompanied by
					 a statement to the applicant and the agent that the applicant or affected
					 insurer has the right to appeal and how an appeal can be made. Such appeal must
					 be made in writing within thirty days after receipt of notice of the action or
					 decision to be appealed.
(b) The
					 staff of the Association or its administrator shall render its decision on the
					 appeal and notify the applicant or affected insurer of its decision within
					 forty-five days of receipt.
(c) Any
					 applicant or affected insurer shall have the right to appeal to the
					 Commissioner any action or decision under subsection (b) of this section. An
					 appeal to the Commissioner shall be made within thirty days of the
					 decision.
(d) The decision of the
					 Commissioner of an appeal under subsection (c) of this section is a final order
					 and is subject to judicial review as provided in Insurance Code Chapter
					 36.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9921 - Fidelity Bonds

Current through Reg. 49, No. 28; July 12, 2024
The Association is authorized to purchase fidelity bonds
						in the amounts required by the Governing Committee. The bonds shall reimburse
						the Association for any pecuniary loss it may sustain by any act or acts of
						fraud or dishonesty on the part of members of the Governing Committee,
						Association officers or employees in the discharge of their
						duties.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9924 - Reinsurance and Other Financing

Current through Reg. 49, No. 28; July 12, 2024
(a) The
					 Association may cede or purchase reinsurance in the name of the Association or
					 on behalf of member insurers on eligible risks written through the
					 Association.
(b) The Association
					 may not assume reinsurance without the prior consent of the
					 Commissioner.
(c) The Association
					 is authorized to arrange for and consummate a taxable or tax-exempt borrowing
					 or borrowings of money or lines of credit for the Association to meet its
					 anticipated financial obligations, including, the funding of Association claims
					 in the event of a catastrophe.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9925 - Statistics

Current through Reg. 49, No. 28; July 12, 2024
(a) Every insurance policy issued by the
					 Association shall be separately coded for statistical purposes.
(b) The Association shall comply with any
					 reporting requirements of the Commissioner concerning its underwriting
					 operations and experience. The reports shall be made at least annually in such
					 form and detail as may be required by the Commissioner.
(c) The Association shall report its premium,
					 loss and expense experience in accordance with a statistical plan promulgated
					 by the Commissioner.
(d) The
					 Association shall submit to the Commissioner periodic reports including:
(1) the number of risks inspected,
(2) the number of risks accepted,
(3) the number of risks conditionally
					 accepted,
(4) the number of
					 reinspections made,
(5) the number
					 of risks declined, and
(6) any
					 other necessary information.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9927 - Annual and Quarterly Financial Statements

Current through Reg. 49, No. 28; July 12, 2024
The Association shall file annual and quarterly financial
						statements with the Commissioner in the form prescribed by the Commissioner.
						Annual financial statements shall be prepared and furnished to the Commissioner
						on or before March thirty-first of the following year.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9928 - Additional Powers of the Association

Current through Reg. 49, No. 28; July 12, 2024
The powers of the Association shall include the
						following:
(1) the ability to
					 sue;
(2) the ability to own or
					 lease real estate for its operations;
(3) the ability to retain the services of
					 experts to aid it in carrying out its operations;
(4) the ability to generally contract for
					 goods and services needed to carry out its operations;
(5) the ability to invest its funds in
					 accordance with Insurance Code Article 2.10; and
(6) the ability to conclude its affairs
					 should the FAIR Plan be deactivated by the Commissioner.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9929 - Severability

Current through Reg. 49, No. 28; July 12, 2024
If any section of this subchapter or the application
						thereof to any person or situation is held invalid, such invalidity shall not
						affect any other section or application of the section which can be given
						effect without the invalid section or application, and to this end the sections
						of this subchapter are declared to be severable.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter U - USE OF CREDIT INFORMATION OR CREDIT SCORES › Section 5.9940 - Disclosure Form Required Concerning Use of Credit Information

Current through Reg. 49, No. 28; July 12, 2024
(a) This subchapter applies to an insurer
				  that writes personal insurance coverage and uses credit information or credit
				  reports for the underwriting or rating of that coverage.
(b) The definitions adopted under Insurance
				  Code Article 21.49-2U apply to this subchapter.
(c) The commissioner adopts by reference
				  disclosure form, Form CD-1, which may be obtained from the department's website
				  at www.tdi.state.tx.us or from the Automobile/Homeowners Section, Mail Code
				  104-1A, Texas Department of Insurance 333 Guadalupe, P.O. Box 149104 Austin,
				  Texas 78714-9104.
(d) In accordance
				  with Section 7(d) of Article 21.49-2U, Insurance Code, an insurer subject to
				  this subchapter or its agents shall issue Form CD-1 indicating whether or not
				  credit information pertaining to the applicant or the insured or other
				  household member(s) will be obtained and used as part of the insurance credit
				  scoring process.
(e) An insurer may
				  use a disclosure form that:
(1) is allowed or
				  approved for use in another state, and
(2) complies with all requirements of this
				  section and Form CD-1.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter U - USE OF CREDIT INFORMATION OR CREDIT SCORES › Section 5.9941 - Differences in Rates Charged Due Solely to Difference in Credit Scores

Current through Reg. 49, No. 28; July 12, 2024
(a) An insurer may vary its rates charged to
				  applicants or insureds for personal insurance policies due solely to credit
				  scoring. The differences in rates charged due solely to credit scoring shall be
				  based on sound actuarial principles and supported by data filed with the
				  department.
(b) Filings under this
				  section must be submitted to the Texas Department of Insurance no later than
				  March 1, 2004 to the Property & Casualty Intake Unit, Mail Code 104-3B,
				  P.O. Box 149104, Austin, Texas 78714-9104 or to the Texas Department of
				  Insurance, Property & Casualty Intake Unit, 333 Guadalupe, Austin, Texas
				  78701.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter W - CONSUMER RIGHTS NOTICES › Section 5.9970 - Personal Automobile Insurance Consumer Bill of Rights

Current through Reg. 49, No. 28; July 12, 2024
(a) For purposes of this section, "insurer"
				  means an insurance company, reciprocal or interinsurance exchange, mutual
				  insurance company, capital stock company, county mutual insurance company,
				  Lloyd's plan, or other legal entity authorized to write personal automobile
				  insurance in this state. The term includes an affiliate, as described by
				  Insurance Code §
										823.003(a),
				  if that affiliate is authorized to write and is writing personal automobile
				  insurance in this state.
(b) The
				  Texas Department of Insurance adopts the 2021 version of the Consumer Bill of
				  Rights - Personal Automobile Insurance (Auto Bill of Rights), and the Spanish
				  language translation, as developed and submitted by the Office of Public
				  Insurance Counsel:
Attached
					 Graphic
Attached
					 Graphic
(c) All
				  insurers writing personal automobile insurance policies must provide with each
				  new policy of personal automobile insurance a copy of the 2021 version of the
				  Auto Bill of Rights. At the consumer's request, the insurer may provide an
				  electronic copy of the Auto Bill of Rights instead of a hard copy. The insurer
				  must provide the Auto Bill of Rights with each renewal notice for personal
				  automobile insurance unless the insurer has previously provided the
				  policyholder with the 2021 version of the Auto Bill of Rights.
(d) The Auto Bill of Rights must appear in no
				  less than 10-point type and be on separate pages with no other text on those
				  pages.
(e) Insurers must provide
				  the Spanish language version of the 2021 version of the Auto Bill of Rights to
				  any consumer who requests it.
(f)
				  Insurers must provide the applicable Auto Bill of Rights included in this
				  section beginning November 15, 2021. Before that date, insurers may provide the
				  Auto Bill of Rights either as it is currently included in this section or as it
				  was included in this section as the section was amended to be effective January
				  31, 2013.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter W - CONSUMER RIGHTS NOTICES › Section 5.9970 - Personal Automobile Insurance Consumer Bill of Rights

Current through Reg. 49, No. 28; July 12, 2024
(a) For
				  purposes of this section, "insurer" means an insurance company, reciprocal or
				  interinsurance exchange, mutual insurance company, capital stock company,
				  county mutual insurance company, Lloyd's plan, or other legal entity authorized
				  to write personal automobile insurance in this state. The term includes an
				  affiliate, as described by Insurance Code §
										823.003(a),
				  if that affiliate is authorized to write and is writing personal automobile
				  insurance in this state.
(b) The
				  Texas Department of Insurance adopts the 2024 version of the Consumer Bill of
				  Rights - Personal Automobile Insurance (Auto Bill of Rights), and the Spanish
				  language translation, as developed and submitted by the Office of Public
				  Insurance Counsel:
Attached
					 Graphic
Attached
					 Graphic
(c) All
				  insurers writing personal automobile insurance policies must provide with each
				  new policy of personal automobile insurance a copy of the 2024 version of the
				  Auto Bill of Rights. At the consumer's request, the insurer may provide an
				  electronic copy of the Auto Bill of Rights instead of a hard copy. The insurer
				  must provide the Auto Bill of Rights with each renewal notice for personal
				  automobile insurance unless the insurer has previously provided the
				  policyholder with the 2024 version of the Auto Bill of Rights.
(d) The Auto Bill of Rights must appear in no
				  less than 10-point type and be on separate pages with no other text on those
				  pages.
(e) Insurers must provide
				  the Spanish language version of the 2024 version of the Auto Bill of Rights to
				  any consumer who requests it.
(f)
				  Insurers must provide the applicable Auto Bill of Rights included in this
				  section beginning November 1, 2024. Before that date, insurers may provide the
				  Auto Bill of Rights either as it currently is included in this section or as it
				  was included in the section as the section was amended to be effective May 16,
				  2021.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter W - CONSUMER RIGHTS NOTICES › Section 5.9971 - Homeowners, Dwelling, and Renters Insurance Consumer Bill of Rights

Current through Reg. 49, No. 28; July 12, 2024
(a) For purposes of this section, "insurer"
				  means an insurance company, reciprocal or interinsurance exchange, mutual
				  insurance company, capital stock company, county mutual insurance company,
				  Lloyd's plan, or other legal entity authorized to write residential property
				  insurance in this state. The term includes an affiliate, as described by
				  Insurance Code §
										823.003(a),
				  if that affiliate is authorized to write and is writing residential property
				  insurance in this state. The term does not include the Texas Windstorm
				  Insurance Association or the Texas Fair Plan Association.
(b) The Texas Department of Insurance adopts
				  the 2021 version of the Consumer Bill of Rights - Homeowners, Dwelling, and
				  Renters Insurance (Homeowners Bill of Rights), and the Spanish language
				  translation, as developed and submitted by the Office of Public Insurance
				  Counsel:
Attached
					 Graphic
Attached
					 Graphic
(c) All
				  insurers writing homeowners, dwelling, or renters insurance must provide with
				  each new policy of any such insurance a copy of the 2021 version of the
				  Homeowners Bill of Rights. At the consumer's request, the insurer may provide
				  an electronic copy of the Homeowners Bill of Rights instead of a hard copy. The
				  insurer must provide the Homeowners Bill of Rights with each renewal notice for
				  any such insurance unless the insurer has previously provided the policyholder
				  with the 2021 version of the Homeowners Bill of Rights.
(d) The Homeowners Bill of Rights must appear
				  in no less than 10-point type and be on separate pages with no other text on
				  those pages.
(e) The insurer must
				  provide the Spanish language version of the 2021 version of the Homeowners Bill
				  of Rights - Revised 2021 to any consumer who requests it.
(f) Insurers must provide the applicable
				  Homeowners Bill of Rights included in this section beginning November 15, 2021.
				  Before that date, insurers may provide the Homeowners Bill of Rights either as
				  it is currently included in this section or as it was included in §
										5.9970
				  of this title as that section was amended to be effective January 31,
				  2013.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter W - CONSUMER RIGHTS NOTICES › Section 5.9971 - Homeowners, Dwelling, and Renters Insurance Consumer Bill of Rights

Current through Reg. 49, No. 28; July 12, 2024
(a) For purposes of this section, "insurer"
				  means an insurance company, reciprocal or interinsurance exchange, mutual
				  insurance company, capital stock company, county mutual insurance company,
				  Lloyd's plan, or other legal entity authorized to write residential property
				  insurance in this state. The term includes an affiliate, as described by
				  Insurance Code §
										823.003(a),
				  if that affiliate is authorized to write and is writing residential property
				  insurance in this state. The term does not include the Texas Windstorm
				  Insurance Association or the Texas Fair Plan Association.
(b) The Texas Department of Insurance adopts
				  the 2024 version of the Consumer Bill of Rights - Homeowners, Dwelling, and
				  Renters Insurance (Homeowners Bill of Rights), and the Spanish language
				  translation, as developed and submitted by the Office of Public Insurance
				  Counsel:
Attached
					 Graphic
Attached
					 Graphic
(c) All
				  insurers writing homeowners, dwelling, or renters insurance must provide with
				  each new policy of any such insurance a copy of the 2024 version of the
				  Homeowners Bill of Rights. At the consumer's request, the insurer may provide
				  an electronic copy of the Homeowners Bill of Rights instead of a hard copy. The
				  insurer must provide the Homeowners Bill of Rights with each renewal notice for
				  any such insurance unless the insurer has previously provided the policyholder
				  with the 2024 version of the Homeowners Bill of Rights.
(d) The Homeowners Bill of Rights must appear
				  in no less than 10-point type and be on separate pages with no other text on
				  those pages.
(e) The insurer must
				  provide the Spanish language version of the 2024 version of the Homeowners Bill
				  of Rights to any consumer who requests it.
(f) Insurers must provide the applicable
				  Homeowners Bill of Rights included in this section beginning November 1, 2024.
				  Before that date, insurers may provide the Homeowners Bill of Rights either as
				  it is currently included in this section or as it was included in the section
				  as the section was amended to be effective May 16, 2021.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter X - PRIOR APPROVAL OF RATES UNDER CERTAIN CIRCUMSTANCES › Section 5.9980 - Financial Conditions

Current through Reg. 49, No. 28; July 12, 2024
(a) The following
				  financial conditions may require an insurer to file with the department for the
				  commissioner's approval all rates, supplementary rating information, and any
				  supporting information:
(1) a finding by the
				  commissioner that an insurer is in a hazardous financial condition under
				  Insurance Code Chapter 404 and §
											8.3
				  of this title (relating to Hazardous Conditions and remedy of Hazardous
				  Conditions);
(2) an insurer has
				  been placed in supervision or conservatorship under Insurance Code Chapter
				  441;
(3) an insurer has been seized
				  or placed in rehabilitation or receivership under Insurance Code Chapter 443;
				  or
(4) an insurer has been required
				  to make a special deposit with the comptroller under Insurance Code Chapter
				  406.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter X - PRIOR APPROVAL OF RATES UNDER CERTAIN CIRCUMSTANCES › Section 5.9981 - Rating Practices

Current through Reg. 49, No. 28; July 12, 2024
(a) The
				  commissioner may order an insurer to file with the department for the
				  commissioner's approval all rates, supplementary rating information, and any
				  supporting information for a rating practice if the commissioner has
				  disapproved a rate by order because:
(1) an
				  insurer filed a rate that was found to be excessive, inadequate, unreasonable,
				  or unfairly discriminatory for the risks to which the rates applied in
				  violation of Insurance Code §
											2251.052;
				  or
(2) the insurer has repetitively
				  used rates that differ from the rates filed under Insurance Code §
											2251.101.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter X - PRIOR APPROVAL OF RATES UNDER CERTAIN CIRCUMSTANCES › Section 5.9982 - Statewide Insurance Emergency

Current through Reg. 49, No. 28; July 12, 2024
(a) The
				  commissioner may order an insurer to file with the department for the
				  commissioner's approval all rates, supplementary rating information, and any
				  supporting information if the commissioner determines that a statewide
				  emergency exists affecting the availability of insurance and impacting a
				  significant part of the state.
(b)
				  The commissioner will consider the following factors in determining whether a
				  statewide insurance emergency exists that impacts the availability of
				  insurance:
(1) there is a substantial
				  increase in policies in a particular line of insurance being written by surplus
				  or residual insurers;
(2) the
				  commissioner has determined that a line of insurance is not offered in a
				  quantity or manner to adequately protect the residents and policyholders in
				  this state as a result of a withdrawal plan or restriction plan filed under
				  Chapter 827; or
(3) the governor
				  declares a natural disaster or the commissioner declares a weather-related
				  catastrophe.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter A - GENERAL MATTERS › Section 6.2 - Submissions and Notifications to the Commissioner and Department

Current through Reg. 49, No. 28; July 12, 2024
Except as otherwise provided in this chapter or the Texas
					 Captive Annual Report, all submissions to the Commissioner or the department
					 referenced in this chapter must be sent to the address and by the means
					 specified on:
(1) the applicable
				  department form;
(2) the
				  department's website; or
(3) if the
				  address is not specified:
(A) electronically,
				  to Captives@tdi.texas.gov;
(B) by
				  hand delivery, to Captives, Texas Department of Insurance, 333 Guadalupe, Mail
				  Code 103-CL, Austin, Texas 78701; or
(C) by mail, to Captives, Texas Department of
				  Insurance, P.O. Box 149104, Mail Code 103-CL, Austin, Texas
				  78714-9104.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter B - CAPTIVE MANAGEMENT COMPANIES › Section 6.101 - Registration of Captive Management Companies

Current through Reg. 49, No. 28; July 12, 2024
(a) A captive management company may not
				  provide administrative services to a captive insurance company prior to
				  obtaining the commissioner's written approval of its registration as a captive
				  management company.
(b) An
				  individual may not provide administrative services or be registered to provide
				  such services unless the individual is:
(1) a
				  member of the governing body or officer of the captive insurance company;
				  or
(2) an employee of the captive
				  insurance company or an affiliate.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter B - CAPTIVE MANAGEMENT COMPANIES › Section 6.102 - Maintenance and Duration of the Registration

Current through Reg. 49, No. 28; July 12, 2024
(a) The captive management company must
				  notify the department of changes to the information required for registration
				  not later than 30 days after the change.
(b) A captive management company may not
				  operate without a designated responsible party except as provided in this
				  subsection. If a designated responsible party leaves a captive management
				  company, the captive management company must notify the department of a
				  replacement designated party and provide all information required under §
										6.103
				  of this title (relating to Designated Responsible Party) within the 30-day
				  period specified in subsection (a) of this section.
(c) The captive management company's
				  registration will expire if the captive management company does not provide
				  administrative services to at least one Texas domestic captive insurance
				  company for a period of more than 180 days.
(d) If a captive management company's
				  registration expires, the captive management company must submit a new
				  registration to the department, which the commissioner must approve in writing
				  before the entity can act as a captive management company. The captive
				  management company may submit a written request for the commissioner to waive
				  any portion of the registration requirement under this section. At the
				  commissioner's sole discretion, the commissioner may grant the waiver in
				  writing if the commissioner determines that the requirement or information is
				  not applicable or provides no additional value in reviewing the registration
				  submission.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter B - CAPTIVE MANAGEMENT COMPANIES › Section 6.103 - Designated Responsible Party

Current through Reg. 49, No. 28; July 12, 2024
A designated responsible party must:
(1) be an individual;
(2) provide the designated responsible
				  party's current name and any names the individual may have used in the past,
				  social security number, date of birth, and current mailing addresses, phone
				  numbers, and email addresses;
(3)
				  provide professional background information and criminal history
				  information;
(4) provide a complete
				  set of fingerprints using the procedures set forth in §
										1.509
				  of this title (relating to Fingerprint Format and Complete Application), unless
				  the individual meets the exemption in §
										1.504(b)(1)
				  of this title (relating to Fingerprint Requirement); and
(5) be eligible for licensure based on the
				  guidelines established in §
										1.502
				  of this title (relating to Licensing Persons with Criminal
				  Backgrounds).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter B - CAPTIVE MANAGEMENT COMPANIES › Section 6.104 - Administrative Services Contracts

Current through Reg. 49, No. 28; July 12, 2024
(a) A
				  captive insurance company through its governing body may retain one or more
				  captive management companies registered under this chapter to provide
				  administrative services and implement the governing body's policies.
(b) With the written consent of the captive
				  insurance company, a captive management company may contract with another
				  captive management company to provide administrative services.
(c) The captive insurance company retains
				  ultimate accountability and responsibility for compliance with all statutory
				  and regulatory requirements. The captive insurance company may not enter into
				  an agreement with a captive management company or other person that in any way
				  limits, or may be construed to limit, the captive insurance company's ultimate
				  accountability and responsibility for compliance with all statutory and
				  regulatory requirements.
(d)
				  Subsection (c) of this section does not limit the captive management company's
				  obligations under any contract or the captive management company's duty to
				  comply with all statutory and regulatory requirements.
(e) If an administrative service requires a
				  license or certificate of authority under the Insurance Code or other law, a
				  captive management company must have the required license or certificate of
				  authority to provide the service.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter B - CAPTIVE MANAGEMENT COMPANIES › Section 6.105 - Agreements to Provide Administrative Services

Current through Reg. 49, No. 28; July 12, 2024
(a) An agreement with a captive management
				  company described in §
										6.104
				  of this title (relating to Administrative Services Contracts) must be in
				  writing and include the following:
(1) a
				  requirement that all parties to the agreement must comply with the applicable
				  requirements of the Insurance Code and department rules, including holding the
				  appropriate licenses or certificates of authority;
(2) a requirement that the captive management
				  company must permit the commissioner or the captive insurance company to
				  examine at any time:
(A) the financial
				  solvency of the captive management company; and
(B) the captive management company's ability
				  to perform its responsibilities under the written agreement;
(3) a description of the duties or
				  services that the captive management company is to provide;
(4) a provision relating to continuation of
				  services following termination and the transfer of the books and records of a
				  captive insurance company from one captive management company to another
				  captive management company;
(5) a
				  requirement that the books and records of the captive insurance company:
(A) remain the property of the captive
				  insurance company at all times;
(B)
				  are available to the captive insurance company or its designee at any time
				  while in the custody of a captive management company; and
(C) will be timely transferred to the captive
				  insurance company or its designee:
(i) on
				  request of the captive insurance company;
(ii) at the termination or cancellation of a
				  written agreement entered into by a captive management company; and
(iii) in compliance with all applicable
				  statutory and rule requirements;
(6) a requirement that the books and records
				  must be maintained as required in §
											6.306 of this
				  title (relating to Books and Records); and
(7) a provision that the captive management
				  company has no automatic right to terminate the agreement if all terms of the
				  agreement are being met and the captive insurance company is placed in
				  receivership under Insurance Code Chapter 443.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter C - CAPTIVE INSURANCE COMPANY APPLICATION PROCESS › Section 6.201 - Captive Insurance Company Certificate of Authority Required

Current through Reg. 49, No. 28; July 12, 2024
(a) A person seeking a certificate of
				  authority to act as a captive insurance company must submit an application and
				  payment of the application fee in a format acceptable to the department and
				  provide the information required in §
										6.202
				  of this title (relating to Captive Insurance Company Certificate of Authority
				  Application Contents and Process).
(b) The application fee is $1,500.
(c) The department may provide forms that an
				  applicant can use for submitting its application.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter C - CAPTIVE INSURANCE COMPANY APPLICATION PROCESS › Section 6.203 - Issuance of Captive Insurance Company Certificate of Authority

Current through Reg. 49, No. 28; July 12, 2024
(a) Following submission of the information
				  and documentation described under §
										6.202
				  of this title the Commissioner will review the information for compliance with
				  Insurance Code Chapter 964 and this chapter. If requested, the applicant must
				  provide the Commissioner with updated information during this review.
(b) If the Commissioner determines that the
				  applicant meets the requirements for issuance of a certificate of authority,
				  the Commissioner will issue the certificate as described in Insurance Code
				  §
										964.059(d).
				  If the department has granted conditional exceptions under §
										6.202(f)
				  of this title, the certificate of authority will list the exceptions and be
				  issued on a consent basis, requiring the written agreement of the captive
				  insurance company.
(c) If the
				  Commissioner determines that the applicant has not met the requirements for
				  issuance of a certificate of authority under Insurance Code §
										964.059 and
				  this chapter, the Commissioner will deny the application. Following denial of
				  the application, the applicant may proceed under Insurance Code §
										964.059(c).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter D - MAINTENANCE OF A CAPTIVE INSURANCE COMPANY'S CERTIFICATE OF AUTHORITY › Section 6.301 - Ongoing Requirements

Current through Reg. 49, No. 28; July 12, 2024
A captive insurance company must comply with Insurance Code
					 Chapter 964, the Business Organizations Code, and this chapter,
					 including:
(1) providing biographical
				  information as required under §
										6.303
				  of this title (relating to Captive Insurance Company Biographical
				  Information);
(2) writing an annual
				  premium amount of at least $100,000;
(3) having an affiliate or ultimate
				  controlling person with the financial wherewithal to continue placing the risk
				  in the captive insurance company;
(4) complying with §
										6.306 and
				  §
										7.1403
				  of this title (relating to Books and Records and Service on Domestic Insurance
				  Companies Licensed by the State Board of Insurance and on Related Entities
				  Authorized To Conduct Business in Texas);
(5) submitting annual reports and audited
				  financial statements as described in §§
										6.401,
				  6.403,
				  and
				  6.404
				  of this title (relating to Annual Report, Audited Financial Statements, and
				  Captive Insurance Companies Using Other Than Calendar Year Fiscal
				  Years);
(6) notifying the
				  department of any material change in the captive insurance company's plan of
				  operation, as described in §
										6.304
				  of this title (relating to Material Change in the Plan of
				  Operations);
(7) maintaining
				  minimum capital and surplus as established by the department;
(8) except as provided in paragraph (6) of
				  this section, notifying the department of any change to the information
				  provided in the application within 30 days following the change; and
(9) timely payment of all required fees and
				  registrations, including payments required by the Texas Secretary of State to
				  maintain the captive insurance company in good standing.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter D - MAINTENANCE OF A CAPTIVE INSURANCE COMPANY'S CERTIFICATE OF AUTHORITY › Section 6.302 - Governing Body

Current through Reg. 49, No. 28; July 12, 2024
(a) The captive
				  insurance company, or attorney in fact, must designate individuals to form a
				  governing body. Collectively, the members of the governing body must have the
				  ability and experience necessary to oversee the captive insurance company's
				  operations. The ability and experience needed will vary with the size and
				  complexity of the captive insurance company's operations.
(b) The governing body is responsible for the
				  following:
(1) establishing and documenting
				  the internal control procedures used by the captive insurance company, or
				  attorney in fact. If a captive insurance company, or attorney in fact, uses an
				  affiliate's procedures, the governing body must review the procedures for
				  appropriateness and modify where needed;
(2) documenting a conflict-of-interest policy
				  and procedure, and monitoring it to verify compliance;
(3) overseeing all entities providing captive
				  management services to the captive insurance company;
(4) monitoring counterparty risk, which could
				  include banking institutions and reinsurers;
(5) setting the captive insurance company
				  investment policy; and
(6)
				  managerial control, insurance information, and compliance with the Insurance
				  Code and department rules.