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Statutes > Texas > Insurance-code > Title-10-property-and-casualty-insurance > Chapter-2301-policy-forms

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE I. POLICY FORMS IN GENERAL

CHAPTER 2301. POLICY FORMS

SUBCHAPTER A. POLICY FORMS GENERALLY

Sec. 2301.001. PURPOSE. The purposes of this subchapter are to:

(1) promote the availability of insurance;

(2) regulate the insurance forms used for lines of insurance to

which this subchapter applies to ensure that the forms are not

unjust, unfair, inequitable, misleading, or deceptive; and

(3) provide regulatory procedures for the maintenance of

appropriate information reporting systems.

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

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

Sec. 2301.002. DEFINITIONS. In this subchapter:

(1) "Form" means an insurance policy form or a printed

endorsement form.

(2) "Residential property insurance" means insurance coverage

against loss to real or tangible personal property at a fixed

location that is provided through a homeowners insurance policy,

including a tenants insurance policy, a condominium owners

insurance policy, or a residential fire and allied lines

insurance policy.

(3) "Supporting information" means any information required by

the department to be filed.

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

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

Sec. 2301.003. APPLICABILITY OF SUBCHAPTER. (a) This

subchapter applies to:

(1) an insurer to which Article 5.13 applies, other than the

Texas Windstorm Insurance Association, the FAIR Plan Association,

and the Texas Automobile Insurance Plan Association; and

(2) except as provided by Subsections (c) and (d), a Lloyd's

plan, reciprocal or interinsurance exchange, and county mutual

insurance company with respect to the lines of insurance

described by Subsection (b).

(b) This subchapter applies to all lines of the following kinds

of insurance written under an insurance policy or contract issued

by an insurer authorized to engage in the business of insurance

in this state:

(1) general liability insurance;

(2) residential and commercial property insurance, including

farm and ranch insurance and farm and ranch owners insurance;

(3) personal and commercial casualty insurance, except as

provided by Section 2301.005;

(4) medical professional liability insurance;

(5) fidelity, guaranty, and surety bonds other than criminal

court appearance bonds;

(6) personal umbrella insurance;

(7) personal liability insurance;

(8) guaranteed auto protection (GAP) insurance;

(9) involuntary unemployment insurance;

(10) financial guaranty insurance;

(11) inland marine insurance;

(12) rain insurance;

(13) hail insurance on farm crops;

(14) personal and commercial automobile insurance;

(15) multi-peril insurance; and

(16) identity theft insurance issued under Chapter 706.

(c) Section 2301.009 does not apply to a Lloyd's plan or a

reciprocal or interinsurance exchange with respect to commercial

property insurance.

(d) This subchapter does not apply to a Lloyd's plan or

reciprocal or interinsurance exchange with respect to inland

marine insurance, rain insurance, or hail insurance on farm

crops.

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.071(b), eff. September 1, 2007.

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

921, Sec. 9.071(b), eff. September 1, 2007.

Sec. 2301.004. EXEMPTION FOR LARGE RISKS. Sections 2301.006,

2301.007(a) and (b), and 2301.008 do not apply to forms for use

with an insured that has:

(1) total insured property values of $5 million or more;

(2) total annual gross revenues of $10 million or more; or

(3) a total premium of $25,000 or more for property insurance,

$25,000 or more for general liability insurance, or $50,000 or

more for multiperil insurance.

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

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

Sec. 2301.005. REGULATION OF INLAND MARINE FORMS. The

commissioner shall adopt rules governing the manner in which

forms for the various classifications of risks insured under

inland marine insurance, as determined by the commissioner, are

regulated.

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

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

Sec. 2301.006. FILING AND APPROVAL OF FORMS. (a) Except as

provided by Section 2301.008, an insurer may not deliver or issue

for delivery in this state a form for use in writing insurance

described by Section 2301.003 unless the form has been filed with

and approved by the commissioner.

(b) An insurer must file the form not later than the 60th day

before the date an insurer uses the form or delivers the form for

use.

(c) A filed form is approved at the expiration of 60 days after

the date the form is filed unless the commissioner by order

approves or disapproves the form during the 60-day period. The

commissioner's approval of a filed form constitutes a waiver of

any unexpired portion of the 60-day period.

(d) The commissioner may extend by not more than 10 days the

60-day period described by Subsection (c) during which the

commissioner may approve or disapprove a form filed by an

insurer. The commissioner shall notify the insurer of the

extension before the expiration of the 60-day period.

(e) A filed form for which an extension has been granted under

Subsection (d) is considered approved at the expiration of the

extension period described by that subsection absent an earlier

approval or disapproval of the form.

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

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

Sec. 2301.007. DISAPPROVAL OF FORMS; WITHDRAWAL OF APPROVAL.

(a) The commissioner may disapprove a form filed under Section

2301.006 or withdraw approval of a form if the form:

(1) violates any law, including a rule adopted under this code;

or

(2) contains a provision or has a title or heading that is

unjust or deceptive, encourages misrepresentation, or violates

public policy.

(b) For good cause shown, the commissioner may withdraw approval

of a form after notice and hearing.

(c) An order issued by the commissioner disapproving a form, or

a notice of the commissioner's intention to withdraw approval of

a form, must state the grounds for the disapproval or withdrawal

of approval in sufficient detail to reasonably inform the insurer

of those grounds.

(d) An order of withdrawal of approval of a form takes effect on

the date prescribed by the commissioner in the order. The

commissioner may not prescribe a date earlier than the 30th day

after the effective date of the order, as prescribed by the

commissioner.

(e) An insurer may not use a form in this state after the

commissioner disapproves the form or withdraws approval of the

form.

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

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

Sec. 2301.008. ADOPTION AND USE OF STANDARD FORMS. The

commissioner may adopt standard insurance policy forms, printed

endorsement forms, and related forms other than insurance policy

forms and printed endorsement forms, that an insurer may use

instead of the insurer's own forms in writing insurance subject

to this subchapter.

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

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

Sec. 2301.009. PUBLIC INSPECTION OF INFORMATION. Each filing

made, and any supporting information filed, under this subchapter

is open to public inspection as of the date of the filing.

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

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

SUBCHAPTER B. POLICY FORMS FOR PERSONAL AUTOMOBILE

INSURANCE COVERAGE AND RESIDENTIAL PROPERTY INSURANCE COVERAGE

Sec. 2301.051. DEFINITIONS. In this subchapter:

(1) "Insurer" means an insurance company, reciprocal or

interinsurance exchange, mutual insurance company, capital stock

insurance company, county mutual insurance company, Lloyd's plan,

or other legal entity authorized to write personal automobile

insurance or residential property insurance in this state. The

term includes an affiliate, as described by this code, that is

authorized to write and is writing personal automobile insurance

or residential property insurance in this state. The term does

not include:

(A) the Texas Windstorm Insurance Association;

(B) the FAIR Plan Association; or

(C) the Texas Automobile Insurance Plan Association.

(2) "Personal automobile insurance" means automobile insurance

coverage for the ownership, maintenance, or use of a private

passenger, utility, or miscellaneous type motor vehicle,

including a motor home, trailer, or recreational vehicle, that

is:

(A) owned or leased by one or more individuals; and

(B) not primarily used for the delivery of goods, materials, or

services, other than for use in farm or ranch operations.

(3) "Residential property insurance" means insurance coverage

against loss to tangible personal property or to residential real

property at a fixed location that is provided through a

homeowners insurance policy, including a tenants insurance

policy, a condominium owners insurance policy, or a residential

fire and allied lines insurance policy.

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

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

Sec. 2301.052. REGULATION OF POLICY FORMS AND ENDORSEMENTS. (a)

Notwithstanding any other provision of this code and except as

provided by this section, Subchapter A applies to an insurer with

respect to insurance policy forms and endorsements for personal

automobile insurance and residential property insurance.

(b) An insurer may continue to use an insurance policy form or

endorsement promulgated, approved, or adopted under Article 5.06

or 5.35 before June 11, 2003, on written notification to the

commissioner that the insurer will continue to use the form or

endorsement.

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

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

Sec. 2301.053. REQUIREMENTS FOR FORMS; PLAIN-LANGUAGE

REQUIREMENT. (a) Each form filed in accordance with this

subchapter must comply with applicable state and federal law.

(b) Each form for a personal automobile insurance policy must

provide the coverages mandated under Subchapters C and D, Chapter

1952, unless the coverages are rejected by the named insured in

the manner provided by those subchapters.

(c) A form may not be used unless the form is written in plain

language. For purposes of this section, a form is written in

plain language if:

(1) the form achieves the minimum score established by the

commissioner on the Flesch reading ease test or an equivalent

test selected by the commissioner; or

(2) at the commissioner's option, the form conforms to the

language requirements in a National Association of Insurance

Commissioners model act relating to plain language.

(d) Subsection (c) does not apply to policy language that is

mandated by state or federal law.

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

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

Sec. 2301.054. CERTAIN CONTRACTS OR AGREEMENTS PROHIBITED;

REVOCATION OF CERTIFICATE OF AUTHORITY. (a) A contract or

agreement that is not written into an application for personal

automobile insurance coverage and the personal automobile

insurance policy is void and violates this code.

(b) A contract or agreement described by Subsection (a)

constitutes grounds for the revocation of an insurer's

certificate of authority to write personal automobile insurance

in this state.

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

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

Sec. 2301.055. RULES. The commissioner may adopt reasonable and

necessary rules to implement 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-2301-policy-forms

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE I. POLICY FORMS IN GENERAL

CHAPTER 2301. POLICY FORMS

SUBCHAPTER A. POLICY FORMS GENERALLY

Sec. 2301.001. PURPOSE. The purposes of this subchapter are to:

(1) promote the availability of insurance;

(2) regulate the insurance forms used for lines of insurance to

which this subchapter applies to ensure that the forms are not

unjust, unfair, inequitable, misleading, or deceptive; and

(3) provide regulatory procedures for the maintenance of

appropriate information reporting systems.

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

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

Sec. 2301.002. DEFINITIONS. In this subchapter:

(1) "Form" means an insurance policy form or a printed

endorsement form.

(2) "Residential property insurance" means insurance coverage

against loss to real or tangible personal property at a fixed

location that is provided through a homeowners insurance policy,

including a tenants insurance policy, a condominium owners

insurance policy, or a residential fire and allied lines

insurance policy.

(3) "Supporting information" means any information required by

the department to be filed.

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

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

Sec. 2301.003. APPLICABILITY OF SUBCHAPTER. (a) This

subchapter applies to:

(1) an insurer to which Article 5.13 applies, other than the

Texas Windstorm Insurance Association, the FAIR Plan Association,

and the Texas Automobile Insurance Plan Association; and

(2) except as provided by Subsections (c) and (d), a Lloyd's

plan, reciprocal or interinsurance exchange, and county mutual

insurance company with respect to the lines of insurance

described by Subsection (b).

(b) This subchapter applies to all lines of the following kinds

of insurance written under an insurance policy or contract issued

by an insurer authorized to engage in the business of insurance

in this state:

(1) general liability insurance;

(2) residential and commercial property insurance, including

farm and ranch insurance and farm and ranch owners insurance;

(3) personal and commercial casualty insurance, except as

provided by Section 2301.005;

(4) medical professional liability insurance;

(5) fidelity, guaranty, and surety bonds other than criminal

court appearance bonds;

(6) personal umbrella insurance;

(7) personal liability insurance;

(8) guaranteed auto protection (GAP) insurance;

(9) involuntary unemployment insurance;

(10) financial guaranty insurance;

(11) inland marine insurance;

(12) rain insurance;

(13) hail insurance on farm crops;

(14) personal and commercial automobile insurance;

(15) multi-peril insurance; and

(16) identity theft insurance issued under Chapter 706.

(c) Section 2301.009 does not apply to a Lloyd's plan or a

reciprocal or interinsurance exchange with respect to commercial

property insurance.

(d) This subchapter does not apply to a Lloyd's plan or

reciprocal or interinsurance exchange with respect to inland

marine insurance, rain insurance, or hail insurance on farm

crops.

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.071(b), eff. September 1, 2007.

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

921, Sec. 9.071(b), eff. September 1, 2007.

Sec. 2301.004. EXEMPTION FOR LARGE RISKS. Sections 2301.006,

2301.007(a) and (b), and 2301.008 do not apply to forms for use

with an insured that has:

(1) total insured property values of $5 million or more;

(2) total annual gross revenues of $10 million or more; or

(3) a total premium of $25,000 or more for property insurance,

$25,000 or more for general liability insurance, or $50,000 or

more for multiperil insurance.

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

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

Sec. 2301.005. REGULATION OF INLAND MARINE FORMS. The

commissioner shall adopt rules governing the manner in which

forms for the various classifications of risks insured under

inland marine insurance, as determined by the commissioner, are

regulated.

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

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

Sec. 2301.006. FILING AND APPROVAL OF FORMS. (a) Except as

provided by Section 2301.008, an insurer may not deliver or issue

for delivery in this state a form for use in writing insurance

described by Section 2301.003 unless the form has been filed with

and approved by the commissioner.

(b) An insurer must file the form not later than the 60th day

before the date an insurer uses the form or delivers the form for

use.

(c) A filed form is approved at the expiration of 60 days after

the date the form is filed unless the commissioner by order

approves or disapproves the form during the 60-day period. The

commissioner's approval of a filed form constitutes a waiver of

any unexpired portion of the 60-day period.

(d) The commissioner may extend by not more than 10 days the

60-day period described by Subsection (c) during which the

commissioner may approve or disapprove a form filed by an

insurer. The commissioner shall notify the insurer of the

extension before the expiration of the 60-day period.

(e) A filed form for which an extension has been granted under

Subsection (d) is considered approved at the expiration of the

extension period described by that subsection absent an earlier

approval or disapproval of the form.

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

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

Sec. 2301.007. DISAPPROVAL OF FORMS; WITHDRAWAL OF APPROVAL.

(a) The commissioner may disapprove a form filed under Section

2301.006 or withdraw approval of a form if the form:

(1) violates any law, including a rule adopted under this code;

or

(2) contains a provision or has a title or heading that is

unjust or deceptive, encourages misrepresentation, or violates

public policy.

(b) For good cause shown, the commissioner may withdraw approval

of a form after notice and hearing.

(c) An order issued by the commissioner disapproving a form, or

a notice of the commissioner's intention to withdraw approval of

a form, must state the grounds for the disapproval or withdrawal

of approval in sufficient detail to reasonably inform the insurer

of those grounds.

(d) An order of withdrawal of approval of a form takes effect on

the date prescribed by the commissioner in the order. The

commissioner may not prescribe a date earlier than the 30th day

after the effective date of the order, as prescribed by the

commissioner.

(e) An insurer may not use a form in this state after the

commissioner disapproves the form or withdraws approval of the

form.

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

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

Sec. 2301.008. ADOPTION AND USE OF STANDARD FORMS. The

commissioner may adopt standard insurance policy forms, printed

endorsement forms, and related forms other than insurance policy

forms and printed endorsement forms, that an insurer may use

instead of the insurer's own forms in writing insurance subject

to this subchapter.

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

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

Sec. 2301.009. PUBLIC INSPECTION OF INFORMATION. Each filing

made, and any supporting information filed, under this subchapter

is open to public inspection as of the date of the filing.

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

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

SUBCHAPTER B. POLICY FORMS FOR PERSONAL AUTOMOBILE

INSURANCE COVERAGE AND RESIDENTIAL PROPERTY INSURANCE COVERAGE

Sec. 2301.051. DEFINITIONS. In this subchapter:

(1) "Insurer" means an insurance company, reciprocal or

interinsurance exchange, mutual insurance company, capital stock

insurance company, county mutual insurance company, Lloyd's plan,

or other legal entity authorized to write personal automobile

insurance or residential property insurance in this state. The

term includes an affiliate, as described by this code, that is

authorized to write and is writing personal automobile insurance

or residential property insurance in this state. The term does

not include:

(A) the Texas Windstorm Insurance Association;

(B) the FAIR Plan Association; or

(C) the Texas Automobile Insurance Plan Association.

(2) "Personal automobile insurance" means automobile insurance

coverage for the ownership, maintenance, or use of a private

passenger, utility, or miscellaneous type motor vehicle,

including a motor home, trailer, or recreational vehicle, that

is:

(A) owned or leased by one or more individuals; and

(B) not primarily used for the delivery of goods, materials, or

services, other than for use in farm or ranch operations.

(3) "Residential property insurance" means insurance coverage

against loss to tangible personal property or to residential real

property at a fixed location that is provided through a

homeowners insurance policy, including a tenants insurance

policy, a condominium owners insurance policy, or a residential

fire and allied lines insurance policy.

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

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

Sec. 2301.052. REGULATION OF POLICY FORMS AND ENDORSEMENTS. (a)

Notwithstanding any other provision of this code and except as

provided by this section, Subchapter A applies to an insurer with

respect to insurance policy forms and endorsements for personal

automobile insurance and residential property insurance.

(b) An insurer may continue to use an insurance policy form or

endorsement promulgated, approved, or adopted under Article 5.06

or 5.35 before June 11, 2003, on written notification to the

commissioner that the insurer will continue to use the form or

endorsement.

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

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

Sec. 2301.053. REQUIREMENTS FOR FORMS; PLAIN-LANGUAGE

REQUIREMENT. (a) Each form filed in accordance with this

subchapter must comply with applicable state and federal law.

(b) Each form for a personal automobile insurance policy must

provide the coverages mandated under Subchapters C and D, Chapter

1952, unless the coverages are rejected by the named insured in

the manner provided by those subchapters.

(c) A form may not be used unless the form is written in plain

language. For purposes of this section, a form is written in

plain language if:

(1) the form achieves the minimum score established by the

commissioner on the Flesch reading ease test or an equivalent

test selected by the commissioner; or

(2) at the commissioner's option, the form conforms to the

language requirements in a National Association of Insurance

Commissioners model act relating to plain language.

(d) Subsection (c) does not apply to policy language that is

mandated by state or federal law.

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

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

Sec. 2301.054. CERTAIN CONTRACTS OR AGREEMENTS PROHIBITED;

REVOCATION OF CERTIFICATE OF AUTHORITY. (a) A contract or

agreement that is not written into an application for personal

automobile insurance coverage and the personal automobile

insurance policy is void and violates this code.

(b) A contract or agreement described by Subsection (a)

constitutes grounds for the revocation of an insurer's

certificate of authority to write personal automobile insurance

in this state.

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

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

Sec. 2301.055. RULES. The commissioner may adopt reasonable and

necessary rules to implement 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-2301-policy-forms

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE I. POLICY FORMS IN GENERAL

CHAPTER 2301. POLICY FORMS

SUBCHAPTER A. POLICY FORMS GENERALLY

Sec. 2301.001. PURPOSE. The purposes of this subchapter are to:

(1) promote the availability of insurance;

(2) regulate the insurance forms used for lines of insurance to

which this subchapter applies to ensure that the forms are not

unjust, unfair, inequitable, misleading, or deceptive; and

(3) provide regulatory procedures for the maintenance of

appropriate information reporting systems.

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

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

Sec. 2301.002. DEFINITIONS. In this subchapter:

(1) "Form" means an insurance policy form or a printed

endorsement form.

(2) "Residential property insurance" means insurance coverage

against loss to real or tangible personal property at a fixed

location that is provided through a homeowners insurance policy,

including a tenants insurance policy, a condominium owners

insurance policy, or a residential fire and allied lines

insurance policy.

(3) "Supporting information" means any information required by

the department to be filed.

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

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

Sec. 2301.003. APPLICABILITY OF SUBCHAPTER. (a) This

subchapter applies to:

(1) an insurer to which Article 5.13 applies, other than the

Texas Windstorm Insurance Association, the FAIR Plan Association,

and the Texas Automobile Insurance Plan Association; and

(2) except as provided by Subsections (c) and (d), a Lloyd's

plan, reciprocal or interinsurance exchange, and county mutual

insurance company with respect to the lines of insurance

described by Subsection (b).

(b) This subchapter applies to all lines of the following kinds

of insurance written under an insurance policy or contract issued

by an insurer authorized to engage in the business of insurance

in this state:

(1) general liability insurance;

(2) residential and commercial property insurance, including

farm and ranch insurance and farm and ranch owners insurance;

(3) personal and commercial casualty insurance, except as

provided by Section 2301.005;

(4) medical professional liability insurance;

(5) fidelity, guaranty, and surety bonds other than criminal

court appearance bonds;

(6) personal umbrella insurance;

(7) personal liability insurance;

(8) guaranteed auto protection (GAP) insurance;

(9) involuntary unemployment insurance;

(10) financial guaranty insurance;

(11) inland marine insurance;

(12) rain insurance;

(13) hail insurance on farm crops;

(14) personal and commercial automobile insurance;

(15) multi-peril insurance; and

(16) identity theft insurance issued under Chapter 706.

(c) Section 2301.009 does not apply to a Lloyd's plan or a

reciprocal or interinsurance exchange with respect to commercial

property insurance.

(d) This subchapter does not apply to a Lloyd's plan or

reciprocal or interinsurance exchange with respect to inland

marine insurance, rain insurance, or hail insurance on farm

crops.

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.071(b), eff. September 1, 2007.

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

921, Sec. 9.071(b), eff. September 1, 2007.

Sec. 2301.004. EXEMPTION FOR LARGE RISKS. Sections 2301.006,

2301.007(a) and (b), and 2301.008 do not apply to forms for use

with an insured that has:

(1) total insured property values of $5 million or more;

(2) total annual gross revenues of $10 million or more; or

(3) a total premium of $25,000 or more for property insurance,

$25,000 or more for general liability insurance, or $50,000 or

more for multiperil insurance.

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

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

Sec. 2301.005. REGULATION OF INLAND MARINE FORMS. The

commissioner shall adopt rules governing the manner in which

forms for the various classifications of risks insured under

inland marine insurance, as determined by the commissioner, are

regulated.

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

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

Sec. 2301.006. FILING AND APPROVAL OF FORMS. (a) Except as

provided by Section 2301.008, an insurer may not deliver or issue

for delivery in this state a form for use in writing insurance

described by Section 2301.003 unless the form has been filed with

and approved by the commissioner.

(b) An insurer must file the form not later than the 60th day

before the date an insurer uses the form or delivers the form for

use.

(c) A filed form is approved at the expiration of 60 days after

the date the form is filed unless the commissioner by order

approves or disapproves the form during the 60-day period. The

commissioner's approval of a filed form constitutes a waiver of

any unexpired portion of the 60-day period.

(d) The commissioner may extend by not more than 10 days the

60-day period described by Subsection (c) during which the

commissioner may approve or disapprove a form filed by an

insurer. The commissioner shall notify the insurer of the

extension before the expiration of the 60-day period.

(e) A filed form for which an extension has been granted under

Subsection (d) is considered approved at the expiration of the

extension period described by that subsection absent an earlier

approval or disapproval of the form.

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

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

Sec. 2301.007. DISAPPROVAL OF FORMS; WITHDRAWAL OF APPROVAL.

(a) The commissioner may disapprove a form filed under Section

2301.006 or withdraw approval of a form if the form:

(1) violates any law, including a rule adopted under this code;

or

(2) contains a provision or has a title or heading that is

unjust or deceptive, encourages misrepresentation, or violates

public policy.

(b) For good cause shown, the commissioner may withdraw approval

of a form after notice and hearing.

(c) An order issued by the commissioner disapproving a form, or

a notice of the commissioner's intention to withdraw approval of

a form, must state the grounds for the disapproval or withdrawal

of approval in sufficient detail to reasonably inform the insurer

of those grounds.

(d) An order of withdrawal of approval of a form takes effect on

the date prescribed by the commissioner in the order. The

commissioner may not prescribe a date earlier than the 30th day

after the effective date of the order, as prescribed by the

commissioner.

(e) An insurer may not use a form in this state after the

commissioner disapproves the form or withdraws approval of the

form.

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

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

Sec. 2301.008. ADOPTION AND USE OF STANDARD FORMS. The

commissioner may adopt standard insurance policy forms, printed

endorsement forms, and related forms other than insurance policy

forms and printed endorsement forms, that an insurer may use

instead of the insurer's own forms in writing insurance subject

to this subchapter.

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

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

Sec. 2301.009. PUBLIC INSPECTION OF INFORMATION. Each filing

made, and any supporting information filed, under this subchapter

is open to public inspection as of the date of the filing.

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

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

SUBCHAPTER B. POLICY FORMS FOR PERSONAL AUTOMOBILE

INSURANCE COVERAGE AND RESIDENTIAL PROPERTY INSURANCE COVERAGE

Sec. 2301.051. DEFINITIONS. In this subchapter:

(1) "Insurer" means an insurance company, reciprocal or

interinsurance exchange, mutual insurance company, capital stock

insurance company, county mutual insurance company, Lloyd's plan,

or other legal entity authorized to write personal automobile

insurance or residential property insurance in this state. The

term includes an affiliate, as described by this code, that is

authorized to write and is writing personal automobile insurance

or residential property insurance in this state. The term does

not include:

(A) the Texas Windstorm Insurance Association;

(B) the FAIR Plan Association; or

(C) the Texas Automobile Insurance Plan Association.

(2) "Personal automobile insurance" means automobile insurance

coverage for the ownership, maintenance, or use of a private

passenger, utility, or miscellaneous type motor vehicle,

including a motor home, trailer, or recreational vehicle, that

is:

(A) owned or leased by one or more individuals; and

(B) not primarily used for the delivery of goods, materials, or

services, other than for use in farm or ranch operations.

(3) "Residential property insurance" means insurance coverage

against loss to tangible personal property or to residential real

property at a fixed location that is provided through a

homeowners insurance policy, including a tenants insurance

policy, a condominium owners insurance policy, or a residential

fire and allied lines insurance policy.

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

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

Sec. 2301.052. REGULATION OF POLICY FORMS AND ENDORSEMENTS. (a)

Notwithstanding any other provision of this code and except as

provided by this section, Subchapter A applies to an insurer with

respect to insurance policy forms and endorsements for personal

automobile insurance and residential property insurance.

(b) An insurer may continue to use an insurance policy form or

endorsement promulgated, approved, or adopted under Article 5.06

or 5.35 before June 11, 2003, on written notification to the

commissioner that the insurer will continue to use the form or

endorsement.

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

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

Sec. 2301.053. REQUIREMENTS FOR FORMS; PLAIN-LANGUAGE

REQUIREMENT. (a) Each form filed in accordance with this

subchapter must comply with applicable state and federal law.

(b) Each form for a personal automobile insurance policy must

provide the coverages mandated under Subchapters C and D, Chapter

1952, unless the coverages are rejected by the named insured in

the manner provided by those subchapters.

(c) A form may not be used unless the form is written in plain

language. For purposes of this section, a form is written in

plain language if:

(1) the form achieves the minimum score established by the

commissioner on the Flesch reading ease test or an equivalent

test selected by the commissioner; or

(2) at the commissioner's option, the form conforms to the

language requirements in a National Association of Insurance

Commissioners model act relating to plain language.

(d) Subsection (c) does not apply to policy language that is

mandated by state or federal law.

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

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

Sec. 2301.054. CERTAIN CONTRACTS OR AGREEMENTS PROHIBITED;

REVOCATION OF CERTIFICATE OF AUTHORITY. (a) A contract or

agreement that is not written into an application for personal

automobile insurance coverage and the personal automobile

insurance policy is void and violates this code.

(b) A contract or agreement described by Subsection (a)

constitutes grounds for the revocation of an insurer's

certificate of authority to write personal automobile insurance

in this state.

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

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

Sec. 2301.055. RULES. The commissioner may adopt reasonable and

necessary rules to implement this subchapter.

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

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


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