Texas Administrative Code

(a) Applicability. This section does not apply to evidence of financial responsibility exhibited as an image displayed on a wireless communication device. Under Transportation Code § 601.053(a) (2-a), the image must include the information required by Transportation Code § 601.08…

(a) Each insurer must pay a fee per "motor vehicle year of insurance" to the Motor Vehicle Crime Prevention Authority, as set by Transportation Code § 1006.153(b) , concerning Fee Imposed on Insurer. The insurer is authorized to recoup some or all of this fee from the policyholde…

(a) Class 4. The following ZIP Codes are designated as Class 4 ZIP Codes: Attached Graphic (b) Class 3. The following ZIP Codes are designated as Class 3 ZIP Codes: Attached Graphic (c) Class 2. The following ZIP Codes are designated as Class 2 ZIP Codes: Attached Graphic (d) Cla…

(a) The purpose of this section is to establish the requirements for the Financial Responsibility Consumer Outreach Program (Program), which the department is required to establish under Transportation Code § 601.072(c) . (b) As required under Transportation Code § 601.072(c) , t…

(a) House Bill 2190, 88th Legislature, 2023 (HB 2190) replaced the term "accident" with "collision" in Insurance Code § 1952.155 , concerning Benefits Payable Without Regard to Fault or Collateral Source; Effect on Subrogation, and §1954.056(b), concerning Financial Responsibilit…

Any insurer desiring to write commercial automobile liability insurance in Texas shall provide loss control information to policyholders. The term "information" includes, but is not limited to, loss data and the results of analysis of that data; training materials such as films, …

The insurer shall maintain the capability of providing loss control information to policyholders and may employ various methods of providing such information. Among these are computer products, such as loss summaries and analyses; printed matter, such as brochures and posters; au…

At least every two years, the State Board of Insurance will conduct an evaluation of the loss control information/services of each insurer writing commercial automobile liability insurance in Texas. (1) Location of evaluations. Evaluations will be conducted in Texas at a company …

(a) On policies written on and after July 1, 1970, by all stock and mutual insurance companies writing fire and allied lines of insurance in Texas within the contemplation of the Insurance Code of 1951, Chapter 5, Subchapter C, as amended, the company may not under such policies …

To provide loss control information and services, the insurer may employ qualified personnel, may retain qualified independent contractors, may contract with the policyholder to provide qualified accident prevention personnel and services, or may use a combination of these method…

(a) This section applies to policies or contracts of insurance where a risk is insured by more than one insurer, the insured has a direct right of action against each insurer, and the company originally insuring the risk and the so-called "reinsuring," "assuming," or "jointly ins…

Insurers regulated under the Insurance Code, Chapters 17-19, and subject to the Insurance Code, Articles 5.35 and 5.36, shall report in accordance with the current Texas property statistical plan for residential and commercial risks. The time and manner of reporting is as set for…

(a) Purpose and scope. The purpose of this section is to: (1) designate the areas determined by the Commissioner of Insurance to be underserved areas for purposes of residential property insurance pursuant to the Insurance Code, Article 5.35-3 (Property Protection Program for Und…

The Commissioner designates all 254 counties of the State of Texas as the underserved areas for the FAIR Plan because it has been determined that residential property insurance is not reasonably available to a substantial number of owners of insurable property in these areas. Not…

(a) Purpose. The purpose of this section is to: (1) designate the areas determined by the Commissioner of Insurance to be underserved areas for purposes of residential property insurance pursuant to the Insurance Code Article 5.13-2C; (2) identify the factors and methodology used…

(a) Purpose and Scope. The purpose and scope of this section is to adopt a plan of operation for the Voluntary Inspection Program which specifies procedures, standards and forms for the implementation of the inspection program. This section addresses the following: (1) Procedures…

(a) Definitions. (1) Words defined in Act. Unless the context clearly dictates the contrary, words defined in the Texas Catastrophe Property Insurance Pool Act (the Insurance Code, Article 21.49, as amended) and not specifically defined in this section shall have the same definit…

(a) Areas Seaward of the Intracoastal Canal. (1) Applicability. This code contains requirements for the construction of buildings to minimize damage to such buildings by severe windstorms which occur along the Gulf Coast. Where specific requirements for particular devices or meth…

(a) Areas Seaward of the Intracoastal Canal. To be eligible for catastrophe property insurance, structures located in designated catastrophe areas which are seaward of the Intracoastal Canal and constructed, repaired, or to which additions are made on and after September 1, 1998,…

(a) To be eligible for catastrophe property insurance, structures located in the designated catastrophe areas specified in § 5.4008 of this chapter (relating to Applicable Building Code Standards in Designated Catastrophe Areas for Structures Constructed, Repaired or to Which Add…

(a) Effective until December 31, 1992, each previous "no-prior insurance" applicant who was written in a higher-rated insurance company will be re-underwritten on the applicant's renewal date subject to the underwriting criteria of each company to which the applicant applies at e…

(a) To be eligible for catastrophe property insurance, structures located in the designated catastrophe areas specified in § 5.4008 of this chapter (relating to Applicable Building Code Standards in Designated Catastrophe Areas for Structures Constructed, Repaired or to Which Add…

A nonresident agent may not offer or sell a TWIA policy if the agent's state of residence does not authorize Texas residents to be agents for that state's windstorm and hail insurer of last resort. TWIA must implement a process to prevent unauthorized nonresident agents from offe…

(a) Purpose. Under Insurance Code § 2210.505 , the Texas Windstorm Insurance Association may issue a policy of windstorm and hail insurance that includes coverage for an amount in excess of the maximum limit of liability approved by the commissioner. (b) Definitions. The followin…

(a) This section and §§ 5.4030 - 5.4041 of this title prescribe guidelines that the Texas Windstorm Insurance Association must use to prepare for and settle residential slab claims in Zones V, VE, and V1-V30, as defined by the National Flood Insurance Program. (b) This section an…

The following definitions apply to §§5.4029 - 5.4041: (1) Applicable storm--An event described in § 5.4029 (b) of this title. (2) Catastrophe area--A municipality, a part of a municipality, a county, or a part of a county designated by the commissioner of insurance under Insuranc…

To estimate the extent to which damage to structures that are the subject of residential slab claims has been caused by wind, waves, tidal surges, or rising waters not caused by waves or surges, the association must employ both a probabilistic approach and an observational approa…

To ensure the accuracy of information related to residential slab claims, the association must: (1) gather and, not less frequently than once every year, update applicable pre-event data on insured structures located in the area described in § 5.4029 (a) of this title. The pre-ev…

(a) The hazard module must generate synchronous, site-specific wind speed and direction time histories and storm surge and wave time histories. (b) The hazard module must include one or more wind field models and a storm surge and wave model. (c) The association must develop plan…

(a) Before an applicable storm, the association must take steps to ensure the deployment of mobile measurement platforms and fixed surface-level devices that: (1) provide real-time wind speed and direction measurements during the applicable storm; and (2) can be used both for for…

(a) The association must develop one or more observational models for constructing a wind field to obtain: (1) site-specific wind speed and direction time histories that are used for wind damage prediction; and (2) a wind field that can be used as input for a surge and wave model…

(a) The association must obtain physical measurements of surge, waves, and high-water marks during and after an applicable storm. Physical measurements of surge, wave, and high-water marks include: (1) water-level time series during the applicable storm from the National Oceanic …

(a) Before an applicable storm, the association must take steps so that it will be able to obtain rapid, post-event high-resolution surge and wave modeling to provide surge and wave time histories. (b) The surge and wave hazard module must directly incorporate both numerical mode…

(a) The association must use the damage estimation module to estimate damage to components of a structure that is the subject of a residential slab claim. The association must use the following inputs: (1) outputs from the wind field and surge and wave models described in §5.4035…

(a) The association must adjust residential slab claims using the damage estimates obtained as described in § 5.4038 of this title. (b) The association must use the wind damage estimates obtained as described in § 5.4038 of this title to determine the scope of work and associated…

(a) Not later than 30 days after a policyholder files a residential slab claim, the association must: (1) notify the policyholder that the association will use the wind damage evaluation method; and (2) send the policyholder a request for any information the policyholder has on: …

This rule incorporates by reference the expert panel's damage estimation module (Section 6 and Appendix A), which is part of the expert panel's report, James R. Bailey, Samuel D. Amoroso, William Coulbourne, Andrew Kennedy, & Douglas A. Smith, A Proposed Methodology for Estimatin…

(a) This section and §§ 5.4102, 5.4111 - 5.4114, 5.4121, 5.4123 - 5.4127, 5.4133 - 5.4136, and 5.4141 - 5.4145 (relating to Definitions, Operation of the Catastrophe Reserve Trust Fund, Termination of the Catastrophe Reserve Trust Fund, Investments of Catastrophe Reserve Trust Fu…

The following words and terms when used in this division will have the following meanings unless the context clearly indicates otherwise: (1) Association--Texas Windstorm Insurance Association. (2) Association program--The funding of any or all of the purposes authorized to be fu…

(a) In general. (1) The comptroller must administer the CRTF in accordance with Insurance Code Chapter 2210 and this subchapter. (2) The comptroller must ensure that all money received from the association under subsection (b) of this section is deposited with the trust company i…

(a) The catastrophe reserve trust fund may be terminated only by law. (b) On termination of the trust fund, all assets of the catastrophe reserve trust fund revert to the state and shall be used by the department to provide funding for the annual loss mitigation and preparedness …

(a) Subject to Insurance Code § 2210.4521 , the money in the CRTF may only be invested in investments as authorized by Government Code § 404.024 and § 404.106 , and as amended. (b) The association does not have authority to direct investments or money in the CRTF. (c) All earning…

(a) Disbursements in response to a catastrophic event require the following: (1) In the event that the association reasonably estimates that a catastrophic event has occurred, the general manager of the association must provide the Commissioner and the comptroller a definitive wr…

(a) The association may enter into financing arrangements. The financing arrangement must: (1) enable the association to: (A) pay losses under Insurance Code § 2210.072 , or (B) obtain public securities under Insurance Code § 2210.072 ; and (2) be approved by the association's bo…

(a) The association's board of directors must request the issuance of public securities as prescribed in § 5.4124 and § 5.4125 of this division (relating to Issuance of Class 1 Public Securities before a Catastrophic Event and Issuance of Public Securities after a Catastrophic Ev…

(a) The association's board of directors may request that TPFA issue class 1 public securities before a catastrophic event, if the association's board of directors determines that class 1 public security proceeds may become necessary and the commissioner approves the request. (b)…

(a) As provided in § 5.4123 of this division (relating to Public Securities Request, Approval, and Issuance) and subject to the commissioner's approval, the association's board of directors may request that TPFA issue public securities after a catastrophic event has occurred. The…