The Texas Department of Insurance reported it has adopted rules pertaining to property insurance changes resulting from legislation passed in 2013 and 2015.
Residential Property Declarations Page
The new rules include requirements for residential property insurance policy declarations pages and respond to the passage of SB 112 in 2013. That bill requires the insurer to include the declarations page with its residential property insurance policy form.
The declarations page must list and explain each deductible under the policy and include the exact dollar amount of each deductible. Although it was effective Sept. 1, 2013, it applies only to an insurance policy delivered, issued for delivery, or renewed on or after Jan. 1, 2014.
TWIA Catastrophic Funding
TDI also adopted rules implementing sections of SB 900, which was passed in 2015. Among other changes, SB 900 made changes to the Texas Windstorm Insurance Association’s sources of catastrophic loss funding.
SB 900 allows for an assessment on property insurers operating in the state of up to $1 billion (in different stages) in the event that TWIA runs out of funds from other sources to pay bills. Insurers would be prohibited from recouping those assessments through a premium surcharge or tax credit.
The adopted rules may be viewed on TDI’s website at http://www.tdi.texas.gov/rules/2015/index.html.