Texas Register, Volume 20, Number 4, Pages 175-260, January 13, 1995 Page: 207
175-260 p. ; 28 cm.View a full description of this periodical.
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(B) (No change.)
(C) Limits of liability.
(i) (No change.)
(ii) In the event that the
value of any isk exceeds the maximum
amounts set forth in the rules manual, the
association may waive the coinsurance re-
quirements and charge a rate on a negoti-
ated basis in accordance with procedures
subject to review by the Department [State
Board of Insurance].
(iii) Limits of liability for
risks required to be insured by the associa-
tion shall be adjusted for inflation as part of
the annual hearing on property rates by the
Commissioner [State Board of Insurance
after January 1, 1992,1 to reflect any
changes in the cost of construction or resi-
dential values in the catastrophe areas as
determined by credible indexes. Indexing of
liability limits shall apply after January 1,
1992 [1991].
(D) (No change.)
(2) Application, acceptance, and
rejection.
(A) Forms. Any person hav-
ing an insurable interest in insurable prop-
erty located in a catastrophe area shall be
entitled to apply to the association for catas-
trophe insurance in the manner provided
herein. All applications for catastrophe in-
surance shall be made on forms prescribed
by the board of directors of the association
and approved by the Commissioner [State
Board of Insurance] as provided in para-
graph (1)(A) of this subsection. Such appli-
cation forms shall contain a statement as to
whether or not there are any unpaid premi-
ums due from the applicant for insurance on
the property. All applications shall be made
on behalf of the applicant by a local record-
ing agent.
(B)-(C) (No change.)
(D) Inspection of the risk.
The board of directors shall determine the
manner and scope which risks are to be
inspected prior to the issuance of a policy of
catastrophe insurance. The board of direc-
tors may issue a policy of catastrophe insur-
ance on certain types of risks without an
inspection provided that the application is
accompanied by such information as the
board of directors may require. The board
of directors shall prepare a set of regula-
tions dealing with the inspection of risks.
Such regulations shall be submitted to the
Commissioner [State Board of Insurance]
for approval. The Commissioner [StateBoard of Insurance] may reject all or any
portion of such regulations within ten days
of the date of their submission [to it]. If the
Commissioner [State Board of Insurance]
shall fail to reject all or any part of such
regulations within 30 days of the date of
their submission, then such regulations shall
be deemed to have been approved [by it] .
(E) Receipt of the applica-
tion.
(i) After receipt of the ap-
plication, the full amount of the premium
(and inspection fee, if any) and any required
inspection report, the association shall[,
within 15 days]:
(I)-(II) (No change.)
(III) advise the agent
or applicant that the risk is not acceptable,
and state the reasons therefor [therefore].
The reasons for which a risk shall [be] not
be acceptable for catastrophe insurance are:
(-a-) (No change.)
(-b-) the amount of
insurance requested is in excess of the lim-
its of liability as set forth in this plan of
operation or by law [subsection (b)(1)(C)
of this section];
(-c-) (No change.)
(-d-) such other
reason as may be determined by the board
of directors and approved by the Commis-
sioner [State Board of Insurance].
(ii) New or increased
coverage will be effective on the date re-
ceived by the association [Texas Catastro-
phe Property Insurance Association] or
effective on the date the application is
mailed if sent by registered or certified
mail, or by United States Postal Service
Express Mail, or if sent by regular mail that
is hand cancelled by the United States
Postal Service, or if sent by such other
similar mailing procedure as approved
by the board of directors, prior to the time
specified in this clause as an exception,
unless the application for new or increased
coverage stipulates a later date. Renewal
policies will be effective to provide continu-
ous coverage if the request for a renewal is
received on or before the expiration of the
existing policy. Exception: no new or in-
creased coverage shall be accepted when a
windstorm designated as a hurricane by the
United States Weather Bureau is in the Gulf
of Mexico or within the boundaries of 80
degrees [degree] west longitude and 20 de-
grees north latitude. This exception does not
apply to any renewal policy affording wind-
storm coverage if the expiring policy was
written by the Texas Catastrophe Property
Insurance Association and if the applicationfor renewal was received by the Texas Ca-
tastrophe Property Insurance Association on
or before the expiration of the existing
Texas Catastrophe Property Insurance Asso-
ciation policy or if mailed by registered or
certified mail or United States Postal Ser-
v ze Express Mail or by regular mail that is
hand-cancelled by the United States Postal
Service, or if sent by such other similar
mailing procedure as approved by the
board of directors, prior to the expiration
of the existing Texas Catastrophe Property
Insurance Association policy.
(3) Cancellation.
(A) By the association.
(i) (No change.)
(ii) Upon cancellation of
a policy of catastrophe insurance issued un-
der this paragraph, the association shall
send to the insured notice of cancellation
together with a statement of the reason
therefor [therefore] and a statement of the
reason the insured has the right to appeal as
hereinafter provided. Upon cancellation of a
policy of catastrophe insurance by the asso-
ciation, the association shall refund to the
insured the excess of paid premium accord-
ing to the standard pro rata table.
(B) By the insured.
(i) (No change.)
(ii) A policy of catastro-
phe insurance may be reduced at any time
in which case the association shall, upon
demand [and surrender of the policy], re-
fund the excess of paid premium according
to the standard short rate table [and shall
issue to the insured a new policy in the
amount requested by the insured].
(4) Payment of claims.
(A) (No change.)
(B) Adjustment of loss. All
losses shall be adjusted in the manner desig-
nated by the board of directors. The assign-
ment of losses shall be on an equitable basis
to [General Adjustment Bureau, Underwrit-
ers Adjustment Company, and other] quali-
fied insurance adjusters at such fee as shall
be determined by the board of directors.
(C) (No change.)
(D) Notice of appeal.
(i) The association shall,
immediately upon total or partial denial of a
claim of any person insured pursuant to the
Insurance Code, Article 21.49, give written
notice by certified mail, return receipt re-
quested, to such person of the right to ap-* PROPOSED RULES January 13, 1995 20 TexReg 207
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Texas. Secretary of State. Texas Register, Volume 20, Number 4, Pages 175-260, January 13, 1995, periodical, January 13, 1995; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth176736/m1/33/: accessed May 21, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.