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.
||CNSM; CRB; Ins
||Bul B-0007-21, 2/19/2021; Citation: *TX Insurance Code* 559.103, 544.353, 551.107, 551.113, 827;
||Compliance; Financial; Legal; Operations; Reporting; Risk
||United States of America
||Insurance; Insurance-Casualty; Insurance-Property
|Reg. Last Update
Last substantive update on 02/20/2021