Texas OKs Rate Changes for Texas FAIR Plan

The Texas Department of Insurance has approved various rate changes for the Texas Fair Access to Insurance Requirements Plan Association (FAIR Plan).

On Dec. 20, 2019, the FAIR Plan filed residential property insurance rates for its homeowners (HO-A), dwelling (TDP-1), tenant (HO-BT), and condominium (HO-CONB) policy forms with TDI. TDI assigned filing numbers S674637, S674652, S674651, and S674649 to the homeowners (HO-A), dwelling (TDP-1), tenant (HO- BT), and condominium (HO-CONB) filings, respectively.

The commissioner is required to approve or disapprove, in whole or in part, the proposed rates within 60 days of filing, with an additional 30-day extension allowed upon notice to the FAIR Plan. On Feb. 11, the department notified the Fair Plan of a deadline extension.

The FAIR Plan Association used its premium and loss data for five calendar/accident years ending Dec. 31, 2014, through Dec. 31, 2018, to develop rate indications by zone.

The FAIR Plan Association averaged actual expenses incurred in 2016 through 2018 to develop its expense provision.

The approved changes may vary by policy and/or zone.

Homeowners
Statewide Average	Indicated Change	Proposed Change
	11.5%	7.9%
Dwelling
Fire Overall Statewide Average	Indicated Change	Proposed Change
	-1.2%	-1.2%
Extended Coverage Overall Statewide Average	Indicated Change	Proposed Change
	11.7%	9.5%
Tenant
Overall Statewide Average	Indicated Change	Proposed Change
	25.9%	9.4%
Condominium
Overall Statewide Average	Indicated Change	Proposed Change
	25.9%	9.2%

The approved are effective on May 1 for new policies and renewals. The commissioner’s order is available online at: https://www.tdi.texas.gov/orders/documents/20206288.pdf

Source: TDI

Topics Texas

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