State Codes and Statutes

Statutes > Texas > Insurance-code > Title-10-property-and-casualty-insurance > Chapter-2003-procedures-for-evaluating-fire-loss-risk

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE D. FIRE INSURANCE AND ALLIED LINES,

INCLUDING RESIDENTIAL PROPERTY INSURANCE

CHAPTER 2003. PROCEDURES FOR EVALUATING FIRE LOSS RISK

SUBCHAPTER A. EVALUATING FIRE LOSS RISK

Sec. 2003.001. FIRE LOSS INFORMATION. (a) The department shall

ascertain as soon as practicable the annual fire loss in this

state.

(b) The department shall, in a manner that will aid in

determining equitable insurance rates and methods to reduce

annual fire loss and insurance rates of this state or

subdivisions of this state:

(1) obtain, make, and maintain records regarding the annual fire

loss in this state; and

(2) collect data concerning the annual fire loss as necessary to

enable the department to classify:

(A) fire losses in this state;

(B) the causes of those fire losses;

(C) the amount of the premiums collected for fire loss for each

class of risk; and

(D) the amount paid for the fire losses.

(c) The commissioner may designate one or more advisory

organizations or other agencies to gather, audit, and compile the

fire loss experience of insurers. The insurers shall bear the

costs incurred under this subsection.

(d) To implement this section, the department may:

(1) employ clerical personnel, inspectors, experts, and other

assistants; and

(2) incur other necessary expenses.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.002. FIRE SUPPRESSION RATINGS FOR BORDER

MUNICIPALITIES. In assigning or evaluating a fire suppression

rating for a municipality at or near the border between this

state and another state or the United Mexican States, the

commissioner shall consider the existence and capabilities of a

fire department or volunteer fire department that:

(1) serves an adjoining or nearby municipality in the other

state or the United Mexican States; and

(2) by agreement or by long-standing practice provides fire

suppression services to the municipality in this state.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.003. CREDIT FOR REDUCING FIRE HAZARD. The

commissioner may give a locality, municipality, or other

political subdivision credit for:

(1) each fire hazard that the locality, municipality, or other

political subdivision reduces or removes;

(2) additional fire-fighting equipment, increased police

protection, or any other equipment or improvement that tends to

reduce the fire hazard of the locality, municipality, or other

political subdivision; and

(3) a good fire record made by the locality, municipality, or

other political subdivision.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.004. POLICYHOLDER CREDIT FOR REDUCING HAZARD. (a)

The commissioner may require an insurer to give credit to a

policyholder for a hazard that the policyholder reduces or

removes.

(b) For purposes of this section, the following actions

constitute a reduction in hazard by a policyholder:

(1) the installation of a new standard fire hydrant approved by

the department within the required distance of a risk, as

prescribed by the department; or

(2) the use of compressed air foam technology in fire-fighting

equipment.

(c) The insurer shall give credit in the proportion that the

hazard is reduced or removed and shall refund to the policyholder

the proportional part of the unearned premium charged for the

hazard that is reduced or removed.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

SUBCHAPTER B. MUNICIPAL FIRE LOSS LISTS

Sec. 2003.051. ANNUAL LIST OF INSURED FIRE LOSSES BY

MUNICIPALITY. (a) The department shall compile for each

municipality in this state a list for distribution to the

municipality of the insured fire and lightning losses that:

(1) exceed $100; and

(2) are paid in the municipality for the preceding statistical

year under policy forms:

(A) adopted or approved by the commissioner and authorized for

use by Section 2301.052(b); or

(B) filed and in effect as provided by Section 2301.052(a).

(b) Each list must include:

(1) the name of each person recovering a loss under a policy

form described by Subsection (a);

(2) the address or location where the loss occurred; and

(3) the amount paid by the insurer on the loss.

(c) The department shall develop each list from information

obtained from insurer reports of individual losses during the

statistical year.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.052. MUNICIPALITY'S REQUEST FOR LIST; RETURN REPORT.

(a) The department shall provide to a municipality a copy of the

list compiled under Section 2003.051 for the municipality on the

request of the municipality or the municipality's authorized

agent or fire marshal.

(b) Each municipality shall investigate the information

contained in the list to determine the losses actually occurring

within the limits of the municipality. The municipality shall

report to the department:

(1) a list of the losses that actually occurred within the

limits of the municipality;

(2) a list of the losses that did not occur within the limits of

the municipality; and

(3) other evidence essential to establishing the losses

occurring in the municipality.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.053. LIST CORRECTIONS; USE. The department shall:

(1) make changes that the department considers appropriate to

correct the list compiled under Section 2003.051 for a

municipality; and

(2) use the corrected list to determine the fire record credit

or debit for the municipality for the next year.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.054. CHARGE FOR LIST AND FIRE RECORD SYSTEM. The

commissioner shall set and collect a charge for compiling and

providing a list under this subchapter and as the commissioner

considers appropriate for administering the fire record system.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.055. DEPARTMENT AUTHORITY TO REQUIRE PROVISION OF FIRE

LOSS INFORMATION. To accumulate statistical information for the

control and prevention of fires, the department may require each

municipality in this state and each insurer engaged in business

in this state to provide to the department a complete and

accurate report that lists all fire and lightning losses

occurring in this state that are reflected in the municipality's

or insurer's records.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.056. DISCRETIONARY PROVISION OF LIST. The department

is not required to provide a list compiled under this subchapter

if the fire record system is not in effect.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

SUBCHAPTER C. VOLUNTARY INSPECTION PROGRAM

Sec. 2003.101. DEFINITIONS. In this subchapter:

(1) "Inspection" means a physical inspection of property for

which residential property insurance is sought.

(2) "Inspection certificate" means a certificate issued under

this subchapter by an inspector indicating that the condition of

property meets or exceeds minimum standards.

(3) "Inspector" means a person authorized by the commissioner to

perform inspections under this subchapter.

(4) "Minimum standards" means the standards adopted by the

commissioner by rule regarding the insurability of property under

this subchapter.

(5) "Residential property insurance" means insurance against

loss to real or tangible personal property at a fixed location

that is provided though a homeowners insurance policy, a

residential fire and allied lines insurance policy, or a farm and

ranch owners insurance policy.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.102. RIGHT TO VOLUNTARY INSPECTION OF PROPERTY

CONDITION. A person with an insurable interest in real or

tangible personal property at a fixed location who desires to

purchase residential property insurance may obtain an independent

inspection of the condition of the property by an inspector

authorized to perform inspections under this subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.103. PLAN OF OPERATION. (a) The commissioner shall

adopt a plan of operation for the voluntary inspection program.

(b) The plan of operation must include rules and standards for

the voluntary inspection program, including:

(1) the manner and scope of the inspections to be performed;

(2) the contents of the written evaluation report;

(3) the form of the inspection certificate to be issued;

(4) the term during which an inspection certificate is valid;

(5) rules for the certification or licensing of persons

authorized to perform inspections under the program; and

(6) the fee that may be charged a person requesting an

inspection under the program.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.104. ELIGIBLE INSPECTORS. Persons who may be

certified or licensed to perform inspections under this

subchapter include:

(1) a person licensed to perform real property inspections under

Chapter 1102, Occupations Code; and

(2) a designated employee or agent of a county or municipality

that chooses to establish a voluntary inspection program to

inspect residential properties within the territorial limits of

the county or municipality.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.105. PRESUMPTION OF INSURABILITY. (a) The existence

of an inspection certificate issued under this subchapter creates

a presumption that the condition of the property inspected is

adequate for the issuance of residential property insurance.

(b) If an inspection certificate is used in whole or in part to

determine insurability, an insurer may require as a condition of

issuing a residential property insurance policy that the

applicant for that insurance provide a written statement that

there has not been a material or substantial change to the

property condition since the date of the inspection certificate.

(c) An insurer who receives an inspection certificate may not

use the condition of the property as grounds to refuse to issue

or renew residential property insurance unless the insurer:

(1) reinspects the property; and

(2) specifies the areas of deficiency in the insurer's

declination letter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.106. ENFORCEMENT. The commissioner by rule may

provide for the use of any disciplinary procedure authorized by

this code to:

(1) maintain the integrity of the voluntary inspection program;

or

(2) ensure compliance with this subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.107. RULES. In addition to the plan of operation

adopted under Section 2003.103, the commissioner may adopt rules

that are appropriate to accomplish the purposes of this

subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-10-property-and-casualty-insurance > Chapter-2003-procedures-for-evaluating-fire-loss-risk

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE D. FIRE INSURANCE AND ALLIED LINES,

INCLUDING RESIDENTIAL PROPERTY INSURANCE

CHAPTER 2003. PROCEDURES FOR EVALUATING FIRE LOSS RISK

SUBCHAPTER A. EVALUATING FIRE LOSS RISK

Sec. 2003.001. FIRE LOSS INFORMATION. (a) The department shall

ascertain as soon as practicable the annual fire loss in this

state.

(b) The department shall, in a manner that will aid in

determining equitable insurance rates and methods to reduce

annual fire loss and insurance rates of this state or

subdivisions of this state:

(1) obtain, make, and maintain records regarding the annual fire

loss in this state; and

(2) collect data concerning the annual fire loss as necessary to

enable the department to classify:

(A) fire losses in this state;

(B) the causes of those fire losses;

(C) the amount of the premiums collected for fire loss for each

class of risk; and

(D) the amount paid for the fire losses.

(c) The commissioner may designate one or more advisory

organizations or other agencies to gather, audit, and compile the

fire loss experience of insurers. The insurers shall bear the

costs incurred under this subsection.

(d) To implement this section, the department may:

(1) employ clerical personnel, inspectors, experts, and other

assistants; and

(2) incur other necessary expenses.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.002. FIRE SUPPRESSION RATINGS FOR BORDER

MUNICIPALITIES. In assigning or evaluating a fire suppression

rating for a municipality at or near the border between this

state and another state or the United Mexican States, the

commissioner shall consider the existence and capabilities of a

fire department or volunteer fire department that:

(1) serves an adjoining or nearby municipality in the other

state or the United Mexican States; and

(2) by agreement or by long-standing practice provides fire

suppression services to the municipality in this state.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.003. CREDIT FOR REDUCING FIRE HAZARD. The

commissioner may give a locality, municipality, or other

political subdivision credit for:

(1) each fire hazard that the locality, municipality, or other

political subdivision reduces or removes;

(2) additional fire-fighting equipment, increased police

protection, or any other equipment or improvement that tends to

reduce the fire hazard of the locality, municipality, or other

political subdivision; and

(3) a good fire record made by the locality, municipality, or

other political subdivision.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.004. POLICYHOLDER CREDIT FOR REDUCING HAZARD. (a)

The commissioner may require an insurer to give credit to a

policyholder for a hazard that the policyholder reduces or

removes.

(b) For purposes of this section, the following actions

constitute a reduction in hazard by a policyholder:

(1) the installation of a new standard fire hydrant approved by

the department within the required distance of a risk, as

prescribed by the department; or

(2) the use of compressed air foam technology in fire-fighting

equipment.

(c) The insurer shall give credit in the proportion that the

hazard is reduced or removed and shall refund to the policyholder

the proportional part of the unearned premium charged for the

hazard that is reduced or removed.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

SUBCHAPTER B. MUNICIPAL FIRE LOSS LISTS

Sec. 2003.051. ANNUAL LIST OF INSURED FIRE LOSSES BY

MUNICIPALITY. (a) The department shall compile for each

municipality in this state a list for distribution to the

municipality of the insured fire and lightning losses that:

(1) exceed $100; and

(2) are paid in the municipality for the preceding statistical

year under policy forms:

(A) adopted or approved by the commissioner and authorized for

use by Section 2301.052(b); or

(B) filed and in effect as provided by Section 2301.052(a).

(b) Each list must include:

(1) the name of each person recovering a loss under a policy

form described by Subsection (a);

(2) the address or location where the loss occurred; and

(3) the amount paid by the insurer on the loss.

(c) The department shall develop each list from information

obtained from insurer reports of individual losses during the

statistical year.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.052. MUNICIPALITY'S REQUEST FOR LIST; RETURN REPORT.

(a) The department shall provide to a municipality a copy of the

list compiled under Section 2003.051 for the municipality on the

request of the municipality or the municipality's authorized

agent or fire marshal.

(b) Each municipality shall investigate the information

contained in the list to determine the losses actually occurring

within the limits of the municipality. The municipality shall

report to the department:

(1) a list of the losses that actually occurred within the

limits of the municipality;

(2) a list of the losses that did not occur within the limits of

the municipality; and

(3) other evidence essential to establishing the losses

occurring in the municipality.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.053. LIST CORRECTIONS; USE. The department shall:

(1) make changes that the department considers appropriate to

correct the list compiled under Section 2003.051 for a

municipality; and

(2) use the corrected list to determine the fire record credit

or debit for the municipality for the next year.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.054. CHARGE FOR LIST AND FIRE RECORD SYSTEM. The

commissioner shall set and collect a charge for compiling and

providing a list under this subchapter and as the commissioner

considers appropriate for administering the fire record system.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.055. DEPARTMENT AUTHORITY TO REQUIRE PROVISION OF FIRE

LOSS INFORMATION. To accumulate statistical information for the

control and prevention of fires, the department may require each

municipality in this state and each insurer engaged in business

in this state to provide to the department a complete and

accurate report that lists all fire and lightning losses

occurring in this state that are reflected in the municipality's

or insurer's records.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.056. DISCRETIONARY PROVISION OF LIST. The department

is not required to provide a list compiled under this subchapter

if the fire record system is not in effect.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

SUBCHAPTER C. VOLUNTARY INSPECTION PROGRAM

Sec. 2003.101. DEFINITIONS. In this subchapter:

(1) "Inspection" means a physical inspection of property for

which residential property insurance is sought.

(2) "Inspection certificate" means a certificate issued under

this subchapter by an inspector indicating that the condition of

property meets or exceeds minimum standards.

(3) "Inspector" means a person authorized by the commissioner to

perform inspections under this subchapter.

(4) "Minimum standards" means the standards adopted by the

commissioner by rule regarding the insurability of property under

this subchapter.

(5) "Residential property insurance" means insurance against

loss to real or tangible personal property at a fixed location

that is provided though a homeowners insurance policy, a

residential fire and allied lines insurance policy, or a farm and

ranch owners insurance policy.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.102. RIGHT TO VOLUNTARY INSPECTION OF PROPERTY

CONDITION. A person with an insurable interest in real or

tangible personal property at a fixed location who desires to

purchase residential property insurance may obtain an independent

inspection of the condition of the property by an inspector

authorized to perform inspections under this subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.103. PLAN OF OPERATION. (a) The commissioner shall

adopt a plan of operation for the voluntary inspection program.

(b) The plan of operation must include rules and standards for

the voluntary inspection program, including:

(1) the manner and scope of the inspections to be performed;

(2) the contents of the written evaluation report;

(3) the form of the inspection certificate to be issued;

(4) the term during which an inspection certificate is valid;

(5) rules for the certification or licensing of persons

authorized to perform inspections under the program; and

(6) the fee that may be charged a person requesting an

inspection under the program.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.104. ELIGIBLE INSPECTORS. Persons who may be

certified or licensed to perform inspections under this

subchapter include:

(1) a person licensed to perform real property inspections under

Chapter 1102, Occupations Code; and

(2) a designated employee or agent of a county or municipality

that chooses to establish a voluntary inspection program to

inspect residential properties within the territorial limits of

the county or municipality.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.105. PRESUMPTION OF INSURABILITY. (a) The existence

of an inspection certificate issued under this subchapter creates

a presumption that the condition of the property inspected is

adequate for the issuance of residential property insurance.

(b) If an inspection certificate is used in whole or in part to

determine insurability, an insurer may require as a condition of

issuing a residential property insurance policy that the

applicant for that insurance provide a written statement that

there has not been a material or substantial change to the

property condition since the date of the inspection certificate.

(c) An insurer who receives an inspection certificate may not

use the condition of the property as grounds to refuse to issue

or renew residential property insurance unless the insurer:

(1) reinspects the property; and

(2) specifies the areas of deficiency in the insurer's

declination letter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.106. ENFORCEMENT. The commissioner by rule may

provide for the use of any disciplinary procedure authorized by

this code to:

(1) maintain the integrity of the voluntary inspection program;

or

(2) ensure compliance with this subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.107. RULES. In addition to the plan of operation

adopted under Section 2003.103, the commissioner may adopt rules

that are appropriate to accomplish the purposes of this

subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.


State Codes and Statutes


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State Codes and Statutes

Statutes > Texas > Insurance-code > Title-10-property-and-casualty-insurance > Chapter-2003-procedures-for-evaluating-fire-loss-risk

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE D. FIRE INSURANCE AND ALLIED LINES,

INCLUDING RESIDENTIAL PROPERTY INSURANCE

CHAPTER 2003. PROCEDURES FOR EVALUATING FIRE LOSS RISK

SUBCHAPTER A. EVALUATING FIRE LOSS RISK

Sec. 2003.001. FIRE LOSS INFORMATION. (a) The department shall

ascertain as soon as practicable the annual fire loss in this

state.

(b) The department shall, in a manner that will aid in

determining equitable insurance rates and methods to reduce

annual fire loss and insurance rates of this state or

subdivisions of this state:

(1) obtain, make, and maintain records regarding the annual fire

loss in this state; and

(2) collect data concerning the annual fire loss as necessary to

enable the department to classify:

(A) fire losses in this state;

(B) the causes of those fire losses;

(C) the amount of the premiums collected for fire loss for each

class of risk; and

(D) the amount paid for the fire losses.

(c) The commissioner may designate one or more advisory

organizations or other agencies to gather, audit, and compile the

fire loss experience of insurers. The insurers shall bear the

costs incurred under this subsection.

(d) To implement this section, the department may:

(1) employ clerical personnel, inspectors, experts, and other

assistants; and

(2) incur other necessary expenses.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.002. FIRE SUPPRESSION RATINGS FOR BORDER

MUNICIPALITIES. In assigning or evaluating a fire suppression

rating for a municipality at or near the border between this

state and another state or the United Mexican States, the

commissioner shall consider the existence and capabilities of a

fire department or volunteer fire department that:

(1) serves an adjoining or nearby municipality in the other

state or the United Mexican States; and

(2) by agreement or by long-standing practice provides fire

suppression services to the municipality in this state.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.003. CREDIT FOR REDUCING FIRE HAZARD. The

commissioner may give a locality, municipality, or other

political subdivision credit for:

(1) each fire hazard that the locality, municipality, or other

political subdivision reduces or removes;

(2) additional fire-fighting equipment, increased police

protection, or any other equipment or improvement that tends to

reduce the fire hazard of the locality, municipality, or other

political subdivision; and

(3) a good fire record made by the locality, municipality, or

other political subdivision.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.004. POLICYHOLDER CREDIT FOR REDUCING HAZARD. (a)

The commissioner may require an insurer to give credit to a

policyholder for a hazard that the policyholder reduces or

removes.

(b) For purposes of this section, the following actions

constitute a reduction in hazard by a policyholder:

(1) the installation of a new standard fire hydrant approved by

the department within the required distance of a risk, as

prescribed by the department; or

(2) the use of compressed air foam technology in fire-fighting

equipment.

(c) The insurer shall give credit in the proportion that the

hazard is reduced or removed and shall refund to the policyholder

the proportional part of the unearned premium charged for the

hazard that is reduced or removed.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

SUBCHAPTER B. MUNICIPAL FIRE LOSS LISTS

Sec. 2003.051. ANNUAL LIST OF INSURED FIRE LOSSES BY

MUNICIPALITY. (a) The department shall compile for each

municipality in this state a list for distribution to the

municipality of the insured fire and lightning losses that:

(1) exceed $100; and

(2) are paid in the municipality for the preceding statistical

year under policy forms:

(A) adopted or approved by the commissioner and authorized for

use by Section 2301.052(b); or

(B) filed and in effect as provided by Section 2301.052(a).

(b) Each list must include:

(1) the name of each person recovering a loss under a policy

form described by Subsection (a);

(2) the address or location where the loss occurred; and

(3) the amount paid by the insurer on the loss.

(c) The department shall develop each list from information

obtained from insurer reports of individual losses during the

statistical year.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.052. MUNICIPALITY'S REQUEST FOR LIST; RETURN REPORT.

(a) The department shall provide to a municipality a copy of the

list compiled under Section 2003.051 for the municipality on the

request of the municipality or the municipality's authorized

agent or fire marshal.

(b) Each municipality shall investigate the information

contained in the list to determine the losses actually occurring

within the limits of the municipality. The municipality shall

report to the department:

(1) a list of the losses that actually occurred within the

limits of the municipality;

(2) a list of the losses that did not occur within the limits of

the municipality; and

(3) other evidence essential to establishing the losses

occurring in the municipality.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.053. LIST CORRECTIONS; USE. The department shall:

(1) make changes that the department considers appropriate to

correct the list compiled under Section 2003.051 for a

municipality; and

(2) use the corrected list to determine the fire record credit

or debit for the municipality for the next year.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.054. CHARGE FOR LIST AND FIRE RECORD SYSTEM. The

commissioner shall set and collect a charge for compiling and

providing a list under this subchapter and as the commissioner

considers appropriate for administering the fire record system.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.055. DEPARTMENT AUTHORITY TO REQUIRE PROVISION OF FIRE

LOSS INFORMATION. To accumulate statistical information for the

control and prevention of fires, the department may require each

municipality in this state and each insurer engaged in business

in this state to provide to the department a complete and

accurate report that lists all fire and lightning losses

occurring in this state that are reflected in the municipality's

or insurer's records.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.056. DISCRETIONARY PROVISION OF LIST. The department

is not required to provide a list compiled under this subchapter

if the fire record system is not in effect.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

SUBCHAPTER C. VOLUNTARY INSPECTION PROGRAM

Sec. 2003.101. DEFINITIONS. In this subchapter:

(1) "Inspection" means a physical inspection of property for

which residential property insurance is sought.

(2) "Inspection certificate" means a certificate issued under

this subchapter by an inspector indicating that the condition of

property meets or exceeds minimum standards.

(3) "Inspector" means a person authorized by the commissioner to

perform inspections under this subchapter.

(4) "Minimum standards" means the standards adopted by the

commissioner by rule regarding the insurability of property under

this subchapter.

(5) "Residential property insurance" means insurance against

loss to real or tangible personal property at a fixed location

that is provided though a homeowners insurance policy, a

residential fire and allied lines insurance policy, or a farm and

ranch owners insurance policy.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.102. RIGHT TO VOLUNTARY INSPECTION OF PROPERTY

CONDITION. A person with an insurable interest in real or

tangible personal property at a fixed location who desires to

purchase residential property insurance may obtain an independent

inspection of the condition of the property by an inspector

authorized to perform inspections under this subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.103. PLAN OF OPERATION. (a) The commissioner shall

adopt a plan of operation for the voluntary inspection program.

(b) The plan of operation must include rules and standards for

the voluntary inspection program, including:

(1) the manner and scope of the inspections to be performed;

(2) the contents of the written evaluation report;

(3) the form of the inspection certificate to be issued;

(4) the term during which an inspection certificate is valid;

(5) rules for the certification or licensing of persons

authorized to perform inspections under the program; and

(6) the fee that may be charged a person requesting an

inspection under the program.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.104. ELIGIBLE INSPECTORS. Persons who may be

certified or licensed to perform inspections under this

subchapter include:

(1) a person licensed to perform real property inspections under

Chapter 1102, Occupations Code; and

(2) a designated employee or agent of a county or municipality

that chooses to establish a voluntary inspection program to

inspect residential properties within the territorial limits of

the county or municipality.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.105. PRESUMPTION OF INSURABILITY. (a) The existence

of an inspection certificate issued under this subchapter creates

a presumption that the condition of the property inspected is

adequate for the issuance of residential property insurance.

(b) If an inspection certificate is used in whole or in part to

determine insurability, an insurer may require as a condition of

issuing a residential property insurance policy that the

applicant for that insurance provide a written statement that

there has not been a material or substantial change to the

property condition since the date of the inspection certificate.

(c) An insurer who receives an inspection certificate may not

use the condition of the property as grounds to refuse to issue

or renew residential property insurance unless the insurer:

(1) reinspects the property; and

(2) specifies the areas of deficiency in the insurer's

declination letter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.106. ENFORCEMENT. The commissioner by rule may

provide for the use of any disciplinary procedure authorized by

this code to:

(1) maintain the integrity of the voluntary inspection program;

or

(2) ensure compliance with this subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2003.107. RULES. In addition to the plan of operation

adopted under Section 2003.103, the commissioner may adopt rules

that are appropriate to accomplish the purposes of this

subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.


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