Texas Administrative Code

(a) The association may use any excess public security proceeds remaining after the purposes for which the public securities were issued or disbursed are satisfied in accordance with Insurance Code § 2210.608(b) . (b) As specified in Insurance Code §§ 2210.072(a) , 2210.073(a) , …

(a) Marketable public securities under this division are public securities that the association in consultation with TPFA determines: (1) are consistent with state debt issuance policy requirements; and (2) achieve the goals of the association. (b) In determining the amount of cl…

While there are outstanding public securities payable under Insurance Code §§ 2210.612 , 2210.613 , or 2210.6131 , or outstanding class 1 public securities issued before June 1, 2015, the association: (1) must consider its obligations for the payment of public securities payable …

(a) While class 1 public securities are outstanding, the association must deposit net premium and other revenue in the class 1 public security trust fund at periods and in amounts as required by the class 1 public security agreements to fund the class 1 payment obligation. As req…

(a) While class 2 or class 3 public securities payable under Insurance Code § 2210.613 and § 2210.6131 , respectively, are outstanding, the association must deposit net premium and other revenue in the class 2 public security trust fund and the class 3 public security trust fund,…

(a) As required by any agreements between the association, TPFA, and the trust company, if public securities payable under Insurance Code § 2210.6132 are outstanding, insurers may be required to deposit contingent surcharges directly into the premium surcharge trust fund or funds…

Revenue collected in any calendar year from premium surcharges under Insurance Code §§ 2210.612 , 2210.613 , 2210.6131 , and 2210.6132 that exceeds the amount of class 1, class 2, or class 3 public security obligations and class 1, class 2, or class 3 public security administrati…

Excess net premium and other revenue collected in the class 1, class 2, and class 3 public security trust funds that is disbursed to the association is an asset of the association and may be used for any purpose authorized in Insurance Code § 2210.056 , or deposited in the CRTF. …

(a) The association, with the Commissioner's approval, must assess members as provided by Insurance Code § 2210.453(d) to pay for the cost of any reinsurance coverage or alternative risk transfer mechanisms it purchases in excess of the statutory minimum funding level. If, in a c…

(a) The association, with the approval of the Commissioner, must assess members as provided by Insurance Code Chapter 2210. (b) The association must provide, in the aggregate for the catastrophe year, the following information when requesting the Commissioner to approve a class 1…

(a) The association must determine which members of the association must participate in any assessment under § 5.4160 and § 5.4161 of this title (relating to Member Assessments to Pay for Reinsurance In Excess of the Association's Statutory Minimum Funding Level and Member Assess…

(a) Notice of assessment shall be sent to each member, within 30 days after the Association levies the assessment, by certified mail, return receipt requested, addressed to the office of such member as it appears on the books of the Association. Such notice shall state the member…

Each member must remit to the association payment in full of its assessed amount of any assessment levied by the association within 30 days of receipt of notice of assessment. Notes 28 Tex. Admin. Code § 5.4164 The provisions of this §5.4164 adopted to be effective February 16, 2…

(a) If the Association has not received payment in full of a member's allocated amount of assessment within 40 days of notice of the receipt by the member of the notice of assessment, then the Association shall report to the commissioner the fact that such assessment has not been…

(a) A member does not waive any right it may have to contest the computation of its allocated assessment amount by mailing or otherwise delivering payment of its allocated assessment amount to the Association, as provided herein. (b) Such contest shall not, however, toll the time…

In the event a member of the association is placed in temporary or permanent receivership under order of a court of competent jurisdiction based on a finding of insolvency, and such member has been designated an impaired insurer by the Commissioner, and in the event an assessment…

(a) The association may be required to assess a premium surcharge under Insurance Code §§ 2210.612 , 2210.613 , or 2210.6131 on all policyholders of policies that cover association-insured property. (b) Following a catastrophic event, insurers may be required to assess a premium …

The following words and terms when used in §§ 5.4171, 5.4173, 5.4181, 5.4182, and 5.4184 - 5.4192 of this division (relating to Premium Surcharge Requirements, Determination of the Contingent Surcharge Percentage, Premiums to be Surcharged, Method for Determining the Premium Surc…

(a) If the commissioner orders public securities to be paid under Insurance Code § 2210.6132 , the association must submit a written request to the commissioner to approve a contingent surcharge on policyholders with insured property in the catastrophe area as authorized under In…

(a) The association surcharge percentage and the contingent surcharge must be applied to: (1) amounts reported as premium for the purposes of reporting under the Annual Statement, Exhibit of Premiums and Losses (Statutory Page 14), Texas; (2) if not reported as described in parag…

(a) The methods addressed in this section relating to contingent surcharges will apply to all: (1) policies written and reported under the following annual statement lines of business: fire; allied lines; farm and ranch owners; homeowners; commercial multiple peril (nonliability …

(a) When assessed under Insurance Code § 2210.6132 , the contingent surcharges must apply to all policies with insured property in the catastrophe area that are issued or renewed with effective dates in the surcharge period specified in the commissioner's order. (b) For associati…

(a) Insurers may not pay the surcharges instead of surcharging their policyholders; however, an insurer may remit a surcharge prior to collecting the surcharge from its policyholder. (b) Insurers must collect the contingent surcharges proportionately as the insurer collects the p…

(a) Except as provided in § 5.4143 of this division (relating to Premium Surcharge Trust Fund), insurers must remit to the association the aggregate amount of contingent surcharges as provided by this section. An affiliated surplus lines insurer may allow a surplus lines agent to…

(a) An insurer may credit a contingent surcharge amount on its next remission to the association if the insurer has already remitted the amount to the association for: (1) the portion of the surcharge the insurer was not able to collect from the policyholder, if the policy was ca…

(a) As provided by Insurance Code §§ 2210.612(d) , 2210.613(d) and 2210.6131(d) , association surcharges are not subject to either premium taxes or agents' commissions. (b) The association may not increase association surcharges for premium taxes or commissions, and agents may no…

(a) Insurers must provide written notice to policyholders receiving a contingent surcharge that their policy contains a surcharge and the dollar amount of the surcharge. The notice must read: "Texas Insurance Code Section 2210.6132 authorizes a premium surcharge to be added to ce…

(a) This section applies to an insurer that, during the calendar year, wrote any of the following types of insurance: commercial fire; commercial allied lines; farm and ranch owners; residential property insurance; commercial multiple peril (nonliability portion); private passeng…

(a) This section applies to an insurer that, during an applicable calendar year, wrote any or all of the following types of insurance: commercial fire; commercial allied lines; farm and ranch owners; residential property insurance; commercial multiple peril (nonliability portion)…

(a) The department may request from each insurer the information necessary to enable the department to determine the premium surcharge percentage applicable to policyholders with insured property located in the catastrophe area. (b) For lines of insurance subject to this division…

The following definitions apply to this division: (1) Appraiser--A person who is qualified to be an appraiser under § 5.4212 of this title (relating to Appraisal Process - Appraiser Qualifications and Conflicts of Interest) and is selected by the association or a claimant to part…

(a) Establishment. The Texas Department of Insurance (department) establishes the Coastal Outreach and Assistance Services Team (COAST) Program to provide information and educational programs to assist persons insured under Chapter 2210 of the Insurance Code with the claim proces…

(a) For purposes of Insurance Code § 2210.205 and this section, good cause means objective facts beyond the insured's control that reasonably caused the insured to fail to file a claim under the policy within the one-year claim-filing deadline. (b) If an insured shows good cause,…

(a) This section defines "good cause" for the purpose of extending the deadlines in Insurance Code § 2210.573(b) and (d) and §2210.5741(b). In this section, "good cause" means objective facts beyond the association's control that reasonably caused or may cause the association to …

A claimant who timely demands appraisal under Insurance Code § 2210.574 or § 2210.5741 may request a supplemental payment on the accepted claim or accepted portion of the claim at any time. A claimant who does not timely demand appraisal may not request a supplemental payment aft…

(a) Applicability. This section and §§ 5.4212 - 5.4222 of this title describe the appraisal process and apply when: (1) the association has accepted coverage for a claim, in full or in part; and (2) the claimant disputes the amount of loss the association will pay for the accepte…

(a) Qualifications. To qualify as an appraiser, a person must be one of the following: (1) an engineer or architect with experience and training in building construction, repair, estimating, or investigation of property damage; (2) an adjuster or public adjuster with experience a…

(a) Conflicts. An appraiser must disclose to both parties any potential conflicts of interest no later than the fifth day after being hired, and before the appraiser begins work on the appraisal. Potential conflicts of interest are listed in § 5.4212 of this title (relating to Ap…

(a) Required qualifications. To qualify as an umpire, a person must: (1) be one of the following: (A) an engineer or architect with experience and training in building construction, repair, estimating, or investigation of property damage; (B) an adjuster or public adjuster with e…

(a) Eligibility. To be placed on the umpire roster, a person must register with the department and must meet the qualifications in § 5.4214 of this title (relating to Appraisal Process - Umpire Qualifications and Conflicts of Interest). (b) Registration. The registration must inc…

(a) Voluntary removal. An umpire may request removal from the roster at any time. The umpire must submit the request under § 5.4251 of this title (relating to Requests and Submissions to the Department). (b) Removal by department. The department may, in its sole discretion, remov…

(a) Applicability. This section applies when the appraisers are unable to agree on an umpire and a party requests the department to select an umpire. (b) Notice. The department will notify at least five umpires of possible inclusion on an umpire selection panel. (c) Factors. When…

(a) Conflicts. An umpire must disclose to both parties any potential conflicts of interest. Conflicts of interest are listed in § 5.4214 of this title (relating to Appraisal Process - Umpire Qualifications and Conflicts of Interest). The umpire must disclose the conflicts of inte…

(a) Applicability. The following umpire obligations apply only when the department selects an umpire under § 5.4217 of this title (relating to Appraisal Process - Umpire Selection by Department). (b) Notices. No later than the seventh day after receiving notice of being selected …

(a) Ex parte communications. After an umpire is selected and before the appraisal is completely resolved: (1) The umpire may not communicate separately with either party or either party's appraiser regarding the pending appraisal unless the umpire notifies the other party and giv…

(a) One-half per party. Each party must pay one-half of all reasonable and necessary costs incurred or charged in connection with the appraisal, including: (1) appraisers' fees; (2) umpire's fee; and (3) umpire's travel costs. (b) No umpire fee before work begins. If the parties …

(a) Extensions. For good cause, the Commissioner may extend any deadline related to appraisal, except the deadline for the umpire to notify the parties that the umpire is insured by the association, under § 5.4218 of this title (relating to Appraisal Process - Umpire Obligations)…