Texas Insurance Commissioner Kent Sullivan has approved a request by the Texas Fair Plan Association to raise rates and revise/implement various fees. The commissioner denied, however, the plan’s request to end premium discounts for electronic burglar alarms and automatic sprinkler systems.
The Fair Plan is a nonprofit entity established to provide homeowners insurance to designated areas in Texas. In June it proposed an overall statewide rate increase of 6.9 percent. Specific changes vary by zone and policy form.
Additionally, the Fair plan requested authority to:
- Introduce an insufficient funds (NSF) fee of $15
- Raise the installment billing service fee from $3 to $5 for quarterly and semi-annual payment plans
- Introduce a $5 late fee
- Introduce a $10 pay-by-phone e-payment fee
The commissioner denied the request, also made in June, to drop the above-mentioned premium discounts because the proposed changes were “not supported by sufficient information,” according to the commissioner’s order issue on Sept. 10.
The rate and fee changes take effect Oct. 1 for new business and Nov. 1 for renewal business.
Was this article valuable?
Here are more articles you may enjoy.