Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter D - FIRE AND ALLIED LINES INSURANCE › Division 3 - JOINT FIRE AND ALLIED LINES INSURANCE › Section 5.3201 - Joint Insurance

Current through Reg. 49, No. 28; July 12, 2024
(a) This section
					 applies to policies or contracts of insurance where a risk is insured by more
					 than one insurer, the insured has a direct right of action against each
					 insurer, and the company originally insuring the risk and the so-called
					 "reinsuring," "assuming," or "jointly insuring" company or companies are
					 permitted by law to charge the same rate or rates of premium for the particular
					 risk insured.
(b) The following
					 statements may be printed in or endorsed on the types of insurance policies
					 specified in subsection (a) of this section.
(1) If the statement is to be printed in the
					 policy, it must be as follows: "The liability of this policy is jointly insured
					 by __________ (print full name and address of jointly insuring company), and
					 the insured is hereby given and granted the same rights of recovery against
					 __________ (print full name of jointly insuring company) as the insured has
					 against __________ (print name of original issuing company). It is hereby
					 agreed and acknowledged that the liability created hereunder is a joint and
					 several obligation. (Two facsimile signatures of officers of the jointly
					 insuring company)."
(2) If the
					 statement is to be used as an endorsement, it must be as follows: "The
					 liability of this policy is jointly insured by __________ (print full name and
					 address of jointly insuring company), and the insured is hereby given and
					 granted the same rights of recovery against __________ (print full name of
					 jointly insuring company) as the insured has against __________ (print name of
					 original issuing company). It is hereby agreed and acknowledged that the
					 liability created hereunder is a joint and several obligation. (Two facsimile
					 signatures of officers of the jointly insuring company). Attached to and
					 forming a part of Policy Number _____ of the __________ (print name of original
					 issuing company) of __________ (city and state), issued at its __________
					 (print address), Texas, agency. Dated __________, Agents."
(3) If the endorsement specified in paragraph
					 (1) of this subsection is used, the policy must be issued and endorsed by duly
					 authorized agents or persons entitled under the laws of this state to bind each
					 of the companies on the policy. If the endorsement specified in paragraph (2)
					 of this subsection is used, the original policy must be issued and endorsed by
					 a duly authorized agent entitled under the laws of this state to bind the
					 original issuing company on the policy, and the endorsement must be issued and
					 authenticated by a duly authorized agent entitled under the laws of this state
					 to bind the jointly insuring company on the policy. Companies assuming
					 liability by use of either of these statements and agreements must set up in
					 the regular course of business the proper unearned premium reserve.