Texas Statutes and Rules Pertinent to Property & Casualty Insurance.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Statut
Texas Statutes and Rules Pertinent to
Property & Casualty Insurance
1. Property Insurance: Usually covers a building, the contents of a building or both
2. Casualty or Liability Insurance: Provides compensation or indemnity for harm
or wrong done to others that the insured is legally obligated to pay.
3. Texas P&C Definition: It is lawful for any insurance company doing business in
Texas under the proper certificate of authority, except life insurance companies, to
insure houses, buildings and all other kinds of property against loss or damage by
fire: to take all kinds of insurance on goods, merchandise, or other property in the
course of transportation, whether on land or water, or any vessel afloat, wherever
the same may be; to lend money on bottomry or respondentia; to cause itself to be
insured against any loss or risk it may have incurred in the course of its business.
4. Approval of Rates and Forms: All policy forms, endorsements and rates must be
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,Texas Statutes and Rules Pertinent to Property & Casualty Insurance.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Statut
approved by the Commissioner and filed no more than 60 days before the date of
delivery or use. After these 60 days, the filed form or endorsement is considered
approved, unless otherwise disapproved by the Commissioner.
5. Cancellation of Homeowner's Insurance in effect over 60 Days: Failure of the
Insured to pay the premium, increase in the hazard that is in control of the insured
and would cause a premium increase on the policy, Insured submits a fraudulent
claim and/or the Department discovers the continuation of this policy would violate
the Insurance Code or any other law governing the business of insurance in this state
6. Written Notice: Insurer may cancel a policy my mail to the Insured at least 10
days before the effective date of cancellation
7. 2 or more Claims: An Insurer issuing standard fire, homeowners, and farm or
ranchowners insurance policies may assess a premium surcharge at the time a
policy is renewing if this amount of claims happened in the preceding policy year.
Not losses from natural causes or that were filed and not paid by the Insurer
8. Additional Premium Surchage: If there is another claim made following the year of
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the 2 claims. The board will set the amount of any surcharge except that it cannot
exceed 10% of the total premium
9. 3 or more Claims: Insurer can decline to renew policy if the insured has filed this
many claims in the last 3 year period
10. Liquidated Demand: In case of total loss of insured property by fire, a fire
insurance policy must be held and considered to be a
against the company for the full amount of the policy. This
regulation does not apply to personal property. Insurers are required to include this
provision verbatim in each fire insurance policy issued on real property in Texas
11. Actual Cash Value (ACV) Basis: This is how all property losses are settled in
Texas. Recovery may NOT exceed the smallest of the following 4 amounts: ACV of the
property at the time of the loss, policy limit for the coverage, amount necessary
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