TX INS Property Coverage in Disaster


On Feb. 19, TX INS issued property, casualty guidance re snowstorm.


  • TX INS issued its expectations for property and casualty underwriting, rating, and nonrenewing during the disaster declaration in response to the severe winter weather.
  • Follows Governor Greg Abbott disaster declaration due to severe winter weather event.
  • Expects insurers to work with their policyholders, as they recover from the disaster.
  • Insurers should see ongoing severe weather declarations for how long to extend relief.
  • Commercial Auto, Victim Policyholders
  • For commercial auto policyholders helping with relief effort, insurers should not rerate, reclassify, cancel, non-renew, or refuse to provide coverage solely due to participation.
  • For policyholders who are victims of the disaster, the same restrictions also apply.
  • Insurer has right to earn premium on extended coverage during a disaster declaration.
  • Credit Scoring
  • Insurers must provide reasonable exceptions to rates, classifications, or underwriting if consumer's credit information was directly influenced by catastrophic illness or injury.
  • Or the death of a spouse/child/parent, temporary job loss, divorce, or identity theft.
  • The insurer may consider only credit information not affected by the specified events, or must assign a neutral credit score, as required by TX Insurance Code 559.103.
  • Insurers can also make exceptions for consumer harm by other extraordinary events.
  • Encouraged accepting verbal requests for reasonable exceptions in lieu of written ones.
  • Nonrenewal, Premiums
  • If nonrenewing residential/farm/ranch owner policy, due to three claims in any three-year period, cannot consider loss of natural cause or claims filed but not paid/payable.
  • Nonrenewals subject to unfair discrimination restrictions, TX Insurance Code 544.353.
  • At renewal, insurers cannot raise premium for claims due to losses from natural cause.
  • Or filed but not paid/payable, or prohibited by S 544.353, TX Insurance Code 551.107.
  • Customer Inquiry, Claim-Payments Extension
  • Insurers cannot use customer inquiry as basis for charging different rate, nonrenewal, policy cancellation, as per TX Insurance Code 544.553, TX Insurance Code 551.113.
  • Before restricting writing new business due to natural disaster, or reducing business below approved thresholds, insurers must file plans with TDI, TX Insurance Code 827.
  • The 15-day Covid-related extension on insurer claim handling deadlines imposed by State's prompt payment laws, remains in effect for purposes of this severe weather.

Regulators TX INS
Entity Types CNSM; CRB; Ins
Reference Bul B-0007-21, 2/19/2021; Citation: *TX Insurance Code* 559.103, 544.353, 551.107, 551.113, 827;
Functions Compliance; Financial; Legal; Operations; Reporting; Risk
Countries United States of America
Products Insurance; Insurance-Casualty; Insurance-Property
Regions Am
Rule Type Guidance
Rule Date 2/19/2021
Effective Date 2/19/2021
Rule Id 98434
Linked to N/A
Reg. Last Update 2/19/2021
Report Section US Insurance

Last substantive update on 02/20/2021