State Codes and Statutes

Statutes > Texas > Insurance-code > Title-10-property-and-casualty-insurance > Chapter-2006-premium-rate-discounts

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE D. FIRE INSURANCE AND ALLIED LINES,

INCLUDING RESIDENTIAL PROPERTY INSURANCE

CHAPTER 2006. PREMIUM RATE DISCOUNTS

SUBCHAPTER A. OPTIONAL PREMIUM DISCOUNT FOR USE OF INSULATING

CONCRETE FORM SYSTEM

Sec. 2006.001. DEFINITIONS. In this subchapter:

(1) "Applicant" includes:

(A) an applicant for new insurance coverage; and

(B) a policyholder renewing insurance coverage.

(2) "Insulating concrete form system" means a building

construction system primarily used to frame exterior walls in

which polystyrene foam forms are placed in the walls of a

structure under construction and filled with concrete and steel

reinforcing material to become a permanent part of the structure.

(3) "Insurer" means an insurer authorized to write property and

casualty insurance in this state, including:

(A) a county mutual insurance company;

(B) a farm mutual insurance company;

(C) a Lloyd's plan; and

(D) a reciprocal or interinsurance exchange.

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

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

Sec. 2006.002. OPTIONAL PREMIUM DISCOUNT. (a) In accordance

with the rules adopted by the commissioner under this subchapter,

an insurer may grant to an applicant a discount in the

applicant's homeowners insurance premiums for insured property on

receipt of written verification from the applicant that the

property was constructed with an insulating concrete form system.

(b) The commissioner by rule shall prescribe the requirements

for determining that a structure was constructed with an

insulating concrete form system.

(c) Verification under this section must comply with the

requirements prescribed by the commissioner.

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

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

Sec. 2006.003. PROPERTY INSPECTION. (a) If determined

necessary by the commissioner, the rules adopted under this

subchapter may require an inspection of the property to be

insured.

(b) The applicant shall pay the costs of a required inspection.

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

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

Sec. 2006.004. PREMIUM DISCOUNT; EXCEPTION. (a) The

commissioner by rule shall establish the premium discount under

this subchapter based on sound actuarial principles.

(b) The commissioner may approve a premium discount greater or

less than the discount established by rule under Subsection (a)

if:

(1) the insurer files the proposed discount with the department;

and

(2) the commissioner determines that the proposed discount is

actuarially justified.

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

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

Sec. 2006.005. RULES. The commissioner may adopt rules as

necessary to implement this subchapter in addition to other rules

adopted under this subchapter.

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

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

SUBCHAPTER B. OPTIONAL PREMIUM DISCOUNT FOR CERTAIN RESIDENTIAL

PROPERTY INSURANCE POLICIES

Sec. 2006.051. DEFINITIONS. In this subchapter:

(1) "Affiliate" means an entity classified as an affiliate under

Section 823.003.

(2) "Insurer" means an insurer authorized to write residential

property insurance, including:

(A) a county mutual insurance company;

(B) a farm mutual insurance company;

(C) a Lloyd's plan; and

(D) a reciprocal or interinsurance exchange.

(3) "Residential property insurance" means property or property

and casualty insurance covering a dwelling, including:

(A) homeowners insurance;

(B) residential fire and allied lines insurance;

(C) farm and ranch insurance; and

(D) farm and ranch owners insurance.

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

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

Sec. 2006.052. OPTIONAL PREMIUM DISCOUNT. (a) Except as

provided by Section 2006.053, an insurer that issues a

residential property insurance policy may:

(1) discount the premiums that would otherwise be charged for

the policy by not less than three percent if the policyholder:

(A) has continuously been a residential property insurance

policyholder with the insurer or an affiliate of the insurer; and

(B) has not filed a residential property insurance claim during

the three years before the effective date of the policy; and

(2) increase the amount of the discount by one percent for each

subsequent year in which the policyholder:

(A) has been a residential property insurance policyholder with

the insurer or an affiliate of the insurer; and

(B) has not filed a residential property insurance claim.

(b) This section applies to an insurer that uses a tier

classification or discount program that has a premium consequence

based in whole or in part on claims experience, regardless of

whether any of the policies that continuously covered the

policyholder was a different kind of residential property

insurance policy from the policy eligible for the premium

discount.

(c) A residential property insurance claim under this section

does not include a claim:

(1) resulting from a loss caused by natural causes;

(2) that is filed but is not paid or payable under the policy;

or

(3) that an insurer is prohibited from using under Section

544.353.

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

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

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 3B.040(a), eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 9.040(a), eff. September 1, 2007.

Sec. 2006.0521. COMPLIANCE WITH OTHER LAW REQUIRED. Any change

in the amount of a premium discount provided under this

subchapter must comply with the requirements of Section 551.107.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 3B.040(b), eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 9.040(b), eff. September 1, 2007.

Sec. 2006.053. APPROVAL OF ACTUARIALLY JUSTIFIED PREMIUM

DISCOUNT. The commissioner may approve a premium discount filed

with the department that is greater or less than the discount

specified by this subchapter if the commissioner determines the

discount is actuarially justified.

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

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

Sec. 2006.054. LIMIT ON PREMIUM DISCOUNT. An insurer that

provides a premium discount under this subchapter is not required

to provide the discount in an amount that exceeds 10 percent of

the premiums that would otherwise be charged for the residential

property insurance policy.

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

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

Sec. 2006.055. RULES AND GUIDELINES. (a) The commissioner

shall adopt rules as necessary to implement this subchapter.

(b) The commissioner by rule shall establish guidelines under

which an insurer that provides a premium discount under this

subchapter shall determine the appropriate discount based on

sound actuarial principles.

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-2006-premium-rate-discounts

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE D. FIRE INSURANCE AND ALLIED LINES,

INCLUDING RESIDENTIAL PROPERTY INSURANCE

CHAPTER 2006. PREMIUM RATE DISCOUNTS

SUBCHAPTER A. OPTIONAL PREMIUM DISCOUNT FOR USE OF INSULATING

CONCRETE FORM SYSTEM

Sec. 2006.001. DEFINITIONS. In this subchapter:

(1) "Applicant" includes:

(A) an applicant for new insurance coverage; and

(B) a policyholder renewing insurance coverage.

(2) "Insulating concrete form system" means a building

construction system primarily used to frame exterior walls in

which polystyrene foam forms are placed in the walls of a

structure under construction and filled with concrete and steel

reinforcing material to become a permanent part of the structure.

(3) "Insurer" means an insurer authorized to write property and

casualty insurance in this state, including:

(A) a county mutual insurance company;

(B) a farm mutual insurance company;

(C) a Lloyd's plan; and

(D) a reciprocal or interinsurance exchange.

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

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

Sec. 2006.002. OPTIONAL PREMIUM DISCOUNT. (a) In accordance

with the rules adopted by the commissioner under this subchapter,

an insurer may grant to an applicant a discount in the

applicant's homeowners insurance premiums for insured property on

receipt of written verification from the applicant that the

property was constructed with an insulating concrete form system.

(b) The commissioner by rule shall prescribe the requirements

for determining that a structure was constructed with an

insulating concrete form system.

(c) Verification under this section must comply with the

requirements prescribed by the commissioner.

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

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

Sec. 2006.003. PROPERTY INSPECTION. (a) If determined

necessary by the commissioner, the rules adopted under this

subchapter may require an inspection of the property to be

insured.

(b) The applicant shall pay the costs of a required inspection.

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

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

Sec. 2006.004. PREMIUM DISCOUNT; EXCEPTION. (a) The

commissioner by rule shall establish the premium discount under

this subchapter based on sound actuarial principles.

(b) The commissioner may approve a premium discount greater or

less than the discount established by rule under Subsection (a)

if:

(1) the insurer files the proposed discount with the department;

and

(2) the commissioner determines that the proposed discount is

actuarially justified.

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

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

Sec. 2006.005. RULES. The commissioner may adopt rules as

necessary to implement this subchapter in addition to other rules

adopted under this subchapter.

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

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

SUBCHAPTER B. OPTIONAL PREMIUM DISCOUNT FOR CERTAIN RESIDENTIAL

PROPERTY INSURANCE POLICIES

Sec. 2006.051. DEFINITIONS. In this subchapter:

(1) "Affiliate" means an entity classified as an affiliate under

Section 823.003.

(2) "Insurer" means an insurer authorized to write residential

property insurance, including:

(A) a county mutual insurance company;

(B) a farm mutual insurance company;

(C) a Lloyd's plan; and

(D) a reciprocal or interinsurance exchange.

(3) "Residential property insurance" means property or property

and casualty insurance covering a dwelling, including:

(A) homeowners insurance;

(B) residential fire and allied lines insurance;

(C) farm and ranch insurance; and

(D) farm and ranch owners insurance.

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

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

Sec. 2006.052. OPTIONAL PREMIUM DISCOUNT. (a) Except as

provided by Section 2006.053, an insurer that issues a

residential property insurance policy may:

(1) discount the premiums that would otherwise be charged for

the policy by not less than three percent if the policyholder:

(A) has continuously been a residential property insurance

policyholder with the insurer or an affiliate of the insurer; and

(B) has not filed a residential property insurance claim during

the three years before the effective date of the policy; and

(2) increase the amount of the discount by one percent for each

subsequent year in which the policyholder:

(A) has been a residential property insurance policyholder with

the insurer or an affiliate of the insurer; and

(B) has not filed a residential property insurance claim.

(b) This section applies to an insurer that uses a tier

classification or discount program that has a premium consequence

based in whole or in part on claims experience, regardless of

whether any of the policies that continuously covered the

policyholder was a different kind of residential property

insurance policy from the policy eligible for the premium

discount.

(c) A residential property insurance claim under this section

does not include a claim:

(1) resulting from a loss caused by natural causes;

(2) that is filed but is not paid or payable under the policy;

or

(3) that an insurer is prohibited from using under Section

544.353.

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

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

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 3B.040(a), eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 9.040(a), eff. September 1, 2007.

Sec. 2006.0521. COMPLIANCE WITH OTHER LAW REQUIRED. Any change

in the amount of a premium discount provided under this

subchapter must comply with the requirements of Section 551.107.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 3B.040(b), eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 9.040(b), eff. September 1, 2007.

Sec. 2006.053. APPROVAL OF ACTUARIALLY JUSTIFIED PREMIUM

DISCOUNT. The commissioner may approve a premium discount filed

with the department that is greater or less than the discount

specified by this subchapter if the commissioner determines the

discount is actuarially justified.

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

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

Sec. 2006.054. LIMIT ON PREMIUM DISCOUNT. An insurer that

provides a premium discount under this subchapter is not required

to provide the discount in an amount that exceeds 10 percent of

the premiums that would otherwise be charged for the residential

property insurance policy.

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

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

Sec. 2006.055. RULES AND GUIDELINES. (a) The commissioner

shall adopt rules as necessary to implement this subchapter.

(b) The commissioner by rule shall establish guidelines under

which an insurer that provides a premium discount under this

subchapter shall determine the appropriate discount based on

sound actuarial principles.

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

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


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-10-property-and-casualty-insurance > Chapter-2006-premium-rate-discounts

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE D. FIRE INSURANCE AND ALLIED LINES,

INCLUDING RESIDENTIAL PROPERTY INSURANCE

CHAPTER 2006. PREMIUM RATE DISCOUNTS

SUBCHAPTER A. OPTIONAL PREMIUM DISCOUNT FOR USE OF INSULATING

CONCRETE FORM SYSTEM

Sec. 2006.001. DEFINITIONS. In this subchapter:

(1) "Applicant" includes:

(A) an applicant for new insurance coverage; and

(B) a policyholder renewing insurance coverage.

(2) "Insulating concrete form system" means a building

construction system primarily used to frame exterior walls in

which polystyrene foam forms are placed in the walls of a

structure under construction and filled with concrete and steel

reinforcing material to become a permanent part of the structure.

(3) "Insurer" means an insurer authorized to write property and

casualty insurance in this state, including:

(A) a county mutual insurance company;

(B) a farm mutual insurance company;

(C) a Lloyd's plan; and

(D) a reciprocal or interinsurance exchange.

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

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

Sec. 2006.002. OPTIONAL PREMIUM DISCOUNT. (a) In accordance

with the rules adopted by the commissioner under this subchapter,

an insurer may grant to an applicant a discount in the

applicant's homeowners insurance premiums for insured property on

receipt of written verification from the applicant that the

property was constructed with an insulating concrete form system.

(b) The commissioner by rule shall prescribe the requirements

for determining that a structure was constructed with an

insulating concrete form system.

(c) Verification under this section must comply with the

requirements prescribed by the commissioner.

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

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

Sec. 2006.003. PROPERTY INSPECTION. (a) If determined

necessary by the commissioner, the rules adopted under this

subchapter may require an inspection of the property to be

insured.

(b) The applicant shall pay the costs of a required inspection.

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

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

Sec. 2006.004. PREMIUM DISCOUNT; EXCEPTION. (a) The

commissioner by rule shall establish the premium discount under

this subchapter based on sound actuarial principles.

(b) The commissioner may approve a premium discount greater or

less than the discount established by rule under Subsection (a)

if:

(1) the insurer files the proposed discount with the department;

and

(2) the commissioner determines that the proposed discount is

actuarially justified.

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

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

Sec. 2006.005. RULES. The commissioner may adopt rules as

necessary to implement this subchapter in addition to other rules

adopted under this subchapter.

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

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

SUBCHAPTER B. OPTIONAL PREMIUM DISCOUNT FOR CERTAIN RESIDENTIAL

PROPERTY INSURANCE POLICIES

Sec. 2006.051. DEFINITIONS. In this subchapter:

(1) "Affiliate" means an entity classified as an affiliate under

Section 823.003.

(2) "Insurer" means an insurer authorized to write residential

property insurance, including:

(A) a county mutual insurance company;

(B) a farm mutual insurance company;

(C) a Lloyd's plan; and

(D) a reciprocal or interinsurance exchange.

(3) "Residential property insurance" means property or property

and casualty insurance covering a dwelling, including:

(A) homeowners insurance;

(B) residential fire and allied lines insurance;

(C) farm and ranch insurance; and

(D) farm and ranch owners insurance.

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

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

Sec. 2006.052. OPTIONAL PREMIUM DISCOUNT. (a) Except as

provided by Section 2006.053, an insurer that issues a

residential property insurance policy may:

(1) discount the premiums that would otherwise be charged for

the policy by not less than three percent if the policyholder:

(A) has continuously been a residential property insurance

policyholder with the insurer or an affiliate of the insurer; and

(B) has not filed a residential property insurance claim during

the three years before the effective date of the policy; and

(2) increase the amount of the discount by one percent for each

subsequent year in which the policyholder:

(A) has been a residential property insurance policyholder with

the insurer or an affiliate of the insurer; and

(B) has not filed a residential property insurance claim.

(b) This section applies to an insurer that uses a tier

classification or discount program that has a premium consequence

based in whole or in part on claims experience, regardless of

whether any of the policies that continuously covered the

policyholder was a different kind of residential property

insurance policy from the policy eligible for the premium

discount.

(c) A residential property insurance claim under this section

does not include a claim:

(1) resulting from a loss caused by natural causes;

(2) that is filed but is not paid or payable under the policy;

or

(3) that an insurer is prohibited from using under Section

544.353.

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

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

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 3B.040(a), eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 9.040(a), eff. September 1, 2007.

Sec. 2006.0521. COMPLIANCE WITH OTHER LAW REQUIRED. Any change

in the amount of a premium discount provided under this

subchapter must comply with the requirements of Section 551.107.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 3B.040(b), eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 9.040(b), eff. September 1, 2007.

Sec. 2006.053. APPROVAL OF ACTUARIALLY JUSTIFIED PREMIUM

DISCOUNT. The commissioner may approve a premium discount filed

with the department that is greater or less than the discount

specified by this subchapter if the commissioner determines the

discount is actuarially justified.

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

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

Sec. 2006.054. LIMIT ON PREMIUM DISCOUNT. An insurer that

provides a premium discount under this subchapter is not required

to provide the discount in an amount that exceeds 10 percent of

the premiums that would otherwise be charged for the residential

property insurance policy.

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

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

Sec. 2006.055. RULES AND GUIDELINES. (a) The commissioner

shall adopt rules as necessary to implement this subchapter.

(b) The commissioner by rule shall establish guidelines under

which an insurer that provides a premium discount under this

subchapter shall determine the appropriate discount based on

sound actuarial principles.

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

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