Texas Administrative Code

(a) Except as provided in this section and subject to Insurance Code § 2210.204 , concerning Cancellation of Certain Coverage, for cancellation of insurance coverage, the minimum retained premium on a TWIA policy issued on an annual basis is equal to the premium for the full annu…

(a) Grace period. The premium payment for policy renewal is considered timely if the Association receives it within 10 calendar days after the due date. (b) Applicability of the grace period to certain premium surcharges. The grace period described in subsection (a) of this secti…

For purposes of the Insurance Code Chapter 2210 and this chapter, the term "alter" and "alteration" shall mean any modification to a structure that physically changes portions of the structure subject to wind forces without increasing the square footage of area of the structure. …

(a) The Association shall submit insurance policy forms, endorsements, manual rules, and application forms to the department for commissioner approval. (1) Each policy form, endorsement, manual rule, and application form submission must include all information required by § 5.931…

(a) Not later than the 15th day after the effective date of this section, the association must file with the department policy forms that provide: (1) that the policy is immediately subject to any surcharge the commissioner may determine under § 5.4126 (relating to Determination …

(a) The purpose of this division is to identify the various classifications of risks defined by the Texas Department of Insurance as inland marine insurance subject to any applicable qualifications in this division. (b) Each class (or subclass, where indicated) is designated as "…

Imports (non-filed). Imports may be insured under inland marine policies when the property is not subject to import risk covered under marine (ocean) policies. (1) Imports on consignment may be covered without restriction as to time or location of the property, provided the cover…

Exports (non-filed). Inland marine policies may cover property for export when the property is not subject to export risk covered under marine (ocean) policies. (1) Export property may be covered without restriction as to time or location of the property, provided coverage includ…

Domestic shipments (non-filed). (1) Inland marine policies may cover domestic shipments on consignment while in transit. (A) Domestic shipments on consignment for sale or distribution for account of the consignor may be covered with no restriction as to time in storage or deposit…

Bridges, tunnels, and other instrumentalities of transportation and communication (non-filed). (1) Policies with fire and extended coverage must also cover at least one other peril. (2) Policies must exclude buildings, office furniture, and supplies stored in the buildings. (3) P…

Consumer credit property insurance (filed). These policies provide property coverage for an open- or closed-end consumer credit transaction that is a retail installment transaction. For purposes of this section, "retail installment transaction" has the meaning assigned in Finance…

Commercial credit property insurance (non-filed). These policies provide property coverage for commercial credit transactions involving installment sales, leased property, and deferred payment contracts. The policies cover the interest of a vendor or mortgagee in property sold in…

Other inland marine risk definitions and classifications follow. (1) Accounts receivable (non-filed). (2) Agricultural machinery and equipment. These risks include: (A) personal risks (filed); and (B) dealers and other commercial risks (non-filed). (3) Bailee customers policies (…

(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Business day--A day other than a Saturday, Sunday, or holiday recognized by the State of Texas. (2) Insurer--An insurer or any pers…

(a) This section provides a rate regulatory procedure for commercial multi-peril policies. (b) The word "rate," when used in this section, means the cost of insurance per exposure unit, whether expressed as a single number or as a prospective loss cost, with an adjustment to acco…

(a) The purpose of this section is to identify commercial lines of insurance that the commissioner of insurance has determined should be exempt from the rate filing requirements in Insurance Code Chapter 2251, Subchapter C, concerning Rate Filings, and the form filing requirement…

This division applies to insurers providing motor vehicle liability insurance in this state under personal automobile insurance policies. The division specifies the requirements, procedures, duties, and obligations of these insurers to comply with the Financial Responsibility Ver…

The following words and terms when used in this division shall have the following meanings unless the context clearly indicates otherwise. (1) Back-up data--Data simultaneously copied, i.e. mirrored, to another physical location and storage device at set intervals. (2) Cascading …

(a) The user guide established in accordance with SECTION 4 of SB 1670 (Acts 2005, 79th Leg., R.S., chap.892, SB 1670 sec. 4) will provide technical guidance to insurers on how to comply with the requirements and procedures specified in §§5.601 - 5.611. The user guide specificati…

(a) Unless an insurer provides the department notice of its election to be a web services insurer under § 5.606 (b) of this subchapter (relating to Requirements for Insurers Using the Web Services Program), each insurer shall participate in the database program for the event base…

(a) Each database insurer shall investigate and correct data errors identified by the vendor as required in subsection (e) of this section. (b) Each database insurer shall provide sufficient and accurate data to meet and maintain a 95 percent match rate beginning January 1, 2008 …

(a) Each web services insurer must meet the requirements of the web services program through both the event based process and the ongoing verification process. (b) Each insurer electing to use the web services program for the event based and ongoing verification processes must pr…

(a) A web services insurer must design, develop, maintain, and submit specifications for a web services program application capable of verifying the status of a policyholder's insurance information. The program must enable the insurer to receive and respond to the vendor's insura…

(a) The web services insurer must accept and respond to insurance verification inquiries from the vendor. (b) The web services insurer must respond to inquiries in no more than 1.75 seconds, of which 0.25 seconds is allotted for transmission from vendor to insurer, and 0.25 secon…

(a) An insurer may delegate by written contract the functions that the insurer is required to perform under the program to one or more department licensed managing general agents (MGA), and to the extent an insurer has contractually delegated any requirement of §§5.601 - 5.611 to…

(a) The commissioner may after opportunity for notice and hearing, discipline an insurer or license holder under the Insurance Code Chapters 82, 83, and 84, and any other applicable law if the commissioner determines the insurer or license holder is in violation of, or has failed…

(a) An insurer or group of insurers (participating insurers) may test a transmission system based on the transmission of insurer provided key-data to provide verification of compliance with the Texas Motor Vehicle Safety Responsibility Act. (b) Further specifics for the test prog…

This division establishes the licensing, contracting, reporting, and financial requirements, procedures, responsibilities, and obligations applicable to applicants and workers' compensation self-insurance groups holding a certificate of approval issued under the Labor Code Chapte…

(a) The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise. (1) Actuary--A member in good standing of the Casualty Actuarial Society or a member in good standing of the American Academy of Actua…

(a) An unincorporated association or business trust composed of five or more private employers that proposes to organize as a workers' compensation self-insurance group shall file with the department an application for a certificate of approval. (b) Contents of the application mu…

(a) No later than 30 days after the effective date of the change, a group shall provide written notice to the department identifying: (1) any change in the information filed by the group under the Labor Code § 407A.051(c) and §5.6403 of this division (relating to Application for …

(a) Unless otherwise approved by the commissioner, a group shall obtain excess insurance for losses that exceed a group's retention in an amount that will pay all benefits required under the Labor Code and rules adopted thereunder for a compensable claim. (b) The group shall obta…

The indemnity agreement required by Labor Code § 407A.051(c)(14) and § 407A.056 must be executed by all employers in the group and shall contain the following provisions: (1) THIS IS A LEGAL DOCUMENT THAT BINDS THE SIGNATORIES TO SPECIFIC DUTIES AND RESPONSIBILITIES REGARDING GRO…

(a) Each member shall execute the acknowledgement set forth in subsection (b) of this section. The acknowledgement shall be printed in black ink on an 8 1/2 inch by 11 inch sheet of white paper in at least 11 point type. (b) The acknowledgement form is as follows: Attached Graphi…

(a) Fidelity bonds required of an administrator under the Labor Code § 407A.051(c)(12) and §5.6403(c)(6) of this division (relating to Application for Initial Certificate of Approval) and a service company under the Labor Code § 407A.051(c)(13) and §5.6403(c)(7) of this division …

(a) Except as otherwise provided in this division, this section applies to all books and records of a group, regardless of whether the books and records are located in the State of Texas or outside the State of Texas. (b) A group's books and records must be located within the Uni…

(a) The board of trustees shall maintain responsibility for all money collected or disbursed from the group. (b) The board shall annually adopt a written investment plan consistent with the requirements for the investments authorized under Insurance Code Article 2.10 and §822.204…

(a) A group shall execute a written agreement with a person identified pursuant to §5.6403(c)(12)(A) or (B) of this division (relating to Application for Initial Certificate of Approval) that meets the requirements of this section. (b) If a person identified pursuant to §5.6403(c…

(a) A group shall annually adopt an operational review plan that provides for sufficient oversight of any person who is required to enter into a written agreement pursuant to §5.6411(a) or (b) of this division (relating to Contract Provisions). The group may modify the operationa…

(a) A group is required to notify the commissioner pursuant to the Labor Code § 407A.201(c) only if the group experiences a reduction in membership, caused by either cancellation or termination, resulting in a cumulative reduction of 10 percent or more of its annual written premi…

The State Board of Insurance adopts by reference special instructions for preparation of workers' compensation insurance policies for Lloyds plan insurers, mutual insurers, reciprocal exchanges, and participating policies issued by stock insurance companies. This material may be …

(a) Applicability. (1) This section applies to workers' compensation insurance and includes employers' liability insurance. Whenever the term "workers' compensation" is used in this section, the term includes and applies to employers' liability insurance. (2) This section applies…

(a) Sections 5.7002 - 5.7012 of this title (relating to Cancellations; Calculation of Time Period; Certain Acts Regarded as Cancellation; Special One-Year Rule Applicable Only to Personal Automobile Policies; Discontinuing the Writing of Certain Lines or Classes, Withdrawing from…

(a) An insurer may cancel a personal automobile policy if it has been in effect for more than 59 days for only the following reasons: (1) the failure of the insured to discharge his or her obligation in the payment of premium for the policy or any installment thereof, whether pay…

The 60- or 90-day time period specified in § 5.7002 of this title (relating to Cancellations) is calculated from the effective date of the policy to the date on which notice of cancellation is mailed. For the purpose of these sections, a renewal, in the same company, of an expiri…

Any company that declines to recognize or put into effect additional coverage to which an insured is entitled under the provisions of an existing policy, or that attempts to reduce or restrict coverage under the provisions of an existing policy by endorsements or by any other mea…

(a) Purpose of rule. The purpose of this section is to: (1) require continuity of coverage for at least one year when the policy is written for a lesser term; and (2) allow cancellation at the expiration of a one-year term when coverage is written for more than one year. (b) Canc…