Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter V - TERRITORY RATING REQUIREMENTS › Section 5.9960 - Exception to Rating Territory Requirements under Sectionof the Insurance Code

Current through Reg. 49, No. 28; July 12, 2024
(a) The purpose of
				  this section is to provide an exception to §
										2253.001 of
				  the Insurance Code for an insurer that writes residential property insurance or
				  personal automobile insurance in the State of Texas.
(b) This section applies to an insurer that
				  writes residential property insurance or personal automobile insurance in the
				  State of Texas. This section applies to a county mutual insurance company, a
				  Lloyd's plan, or a reciprocal or interinsurance exchange effective January 1,
				  2004.
(c) The following words and
				  terms, when used in this section have the following meanings, unless the
				  context clearly indicates otherwise.
(1)
				  County--A county in the State of Texas.
(2) Insurer--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 or personal automobile insurance in the
				  State of Texas. The term includes an appointed managing general agent,
				  district, or local chapter program of a county mutual insurance company
				  described by the Insurance Code §
											912.056(d)
				  that manages a portion of that county mutual company's business independent of
				  all other business of that county mutual insurance company and that is to be
				  treated as a separate insurer for the purposes of Chapters 544, 2251, 2253, and
				  2254 of the Insurance Code as provided in §
											912.056(e)
				  of the Insurance Code. The term does not include:
(A) the Texas Windstorm Insurance Association
				  under Chapter 2210 of the Insurance Code;
(B) the FAIR Plan Association under Chapter
				  2211 of the Insurance Code; or
(C)
				  the Texas Automobile Insurance Plan Association under Chapter 2151 of the
				  Insurance Code.
(3)
				  Personal automobile insurance--Motor vehicle insurance coverage for the
				  ownership, maintenance or use of a private passenger, utility or miscellaneous
				  type motor vehicle, including a motor home, mobile home, trailer or
				  recreational vehicle, that is:
(A) owned or
				  leased by an individual or individuals; and
(B) not primarily used for the delivery of
				  goods, materials, or services, other than for use in farm or ranch
				  operations.
(4)
				  Rate--The cost of insurance per exposure unit, whether expressed as a single
				  number or as a prospective loss cost, with an adjustment to account for the
				  treatment of expenses, profit, and individual insurer variation in loss
				  experience, and before any application of individual risk variations based on
				  loss or expense considerations.
(5)
				  Residential property insurance--Insurance against loss to real property at a
				  fixed location or tangible personal property provided in a homeowners policy, a
				  tenant policy, a condominium owners policy, or a residential fire and allied
				  lines policy.