| REVIEW REQUIREMENTS |
REFERENCE |
COMMENTS |
| FORMS |
| Filing Standards |
| Mortgage Guaranty - File and Use |
Article 21.50, Texas Insurance Code |
Policy forms must be filed with the department at least 15 days before they are to become effective. |
| Mortgage Guaranty Pool - Use and File |
Article 21.50, Texas Insurance Code |
Policy forms which are to be used shall be filed within 15 days after they are to be effective. |
| Applications |
| Not Required to be Filed |
|
|
| Arbitration |
| Arbitration |
Article 21.50 §1A(c), Texas Insurance Code |
Language used in arbitration agreements is to be consistent with that of the policy: to wit, don't use the word "parties" when you actually mean insured(s) and insurer. Binding arbitration is okay. Arbitration agreements may be mandatory. Arbitration must be held in Texas for Texas policyholders unless mutually agree on an alternate. In general, arbitration language cannot be unjust, misleading or deceptive. |
| Cancellation & Nonrenewal |
| Elected Officials |
§§551.151 & 551.152 (formerly Article 21.49-2D), Texas Insurance Code |
May not cancel or nonrenew based solely on the fact the insured is an elected official. |
| Insured's Right to Cancel |
Article 21.50, Texas Insurance Code |
Insurance company cannot limit or restrict the insured's right to cancel a policy. |
| Choice of Law |
| Texas Laws Govern Policies |
Article 21.42, Texas Insurance Code |
Texas must be choice if filing contains choice of law provision. |
| Claims Settlement |
| Contractual Limitations Period - Suits |
§16.004, Civil Practice & Remedies |
Legal action, 4 years if purpose is to pay debt owed. |
| Notice Requirements |
§16.071, Civil Practice & Remedies |
A contract stipulation that requires a claimant to give notice of a claim for damages as a condition precedent to the right to sue on the contract is not valid unless the stipulation is reasonable. A stipulation that requires notification within less than 90 days is void. |
| Coverage Issues |
| Tie-In Sales |
Article 5.20, Texas Insurance Code & 6/1/78 Board Letter |
Tie-in sales may violate state law. |
| Disclosure of Guaranty Fund Nonparticipation |
| Disclosure of Guaranty Fund Nonparticipation in Insurance Policies, Contracts, and Applications and in Certificates and Evidences of Coverage |
Article 21.28-E, Texas Insurance Code |
Each insurance policy or contract or application or certificate or evidence of coverage delivered, issued for delivery in this state that is not covered by an insurance guaranty fund or other solvency protection arrangement authorized by the insurance code must have affixed to the first page in 10-point type a statement to the effect that, in the event the insurer is unable to fulfill its contractual obligation under this policy or contract or the certificate or evidence of coverage, the insurer is not covered by an insurance guaranty fund or other solvency protection arrangement. (See Article 21.28-C for Property and Casualty Insurance Guaranty Act.) |
| Disclosure of Guaranty Fund Nonparticipation |
28 TAC §1.1001, Texas Administrative Code |
Disclosure language to satisfy the requirement per Article 21.28-E, Texas Insurance Code. |
| Fully Earned Premium/Retention of Minimum Earned Premium |
| Fully Earned Premium / Retention of Minimum Earned Premium is unacceptable - Exceptions |
Article 21.50, Texas Insurance Code |
Fully earned premium or retention of minimum earned premium is unacceptable. However, a nominal amount is considered acceptable. Fully earned would be considered where coverage is being provided for risks such as special events and weather policies. |
| General Change Endorsements |
| May Not Manuscript Coverage |
Article 21.50, Texas Insurance Code |
Change endorsements may be used to change insured address, etc. but may not be used to change, alter or "clarify" coverage in any way. Company must provide verification that the endorsement will not be used to change, alter, or clarify coverage. |
| Subrogation Rights |
| Policy Form Requirements |
Article 21.50, §1A(c) |
No policy of mortgage guaranty insurance shall contain a provision which allows subrogation rights or any other claim by an insurer against the borrower for a deficiency arising from a foreclosure sale of a single-family dwelling occupied by the borrower as the principal residence of the borrower. |
| Rebating or Discrimination |
| Rebating or Discrimination |
Article 5.20, Texas Insurance Code |
Inducements prohibited. |
| Title Insurance Issues |
| Mortgagee Title Insurance |
Article 9.02(b), Texas Insurance Code |
Coverage under Mortgage Guaranty Insurance should not include an "Undisclosed Lien" or similar situation which takes priority over the position of a Mortgage Agreement, this is the purpose of the Mortgagee Title Policy. |
| Toll Free Information |
| Notice of Policyholder Complaint Procedures |
§521.005 (formerly Article 1.35), Texas Insurance Code |
A brief written notice of suggested procedure to be followed by the policyholder in the event of a dispute concerning a policyholder's claim or premium. |
| Toll-Free Information & Complaint Number |
§§521.051 - 521.056 (formerly Article 1.35D), Texas Insurance Code |
Toll-Free number for the Texas Department of Insurance. |
| Insurer's Toll-Free Information & Complaint Number |
§§521.101 - 521.103 (formerly Article 21.71), Texas Insurance Code |
Insurer's requirement to maintain toll-free number to provide information concerning policies issued by the insurer and to accept complaints from policyholder. Article contains an exception for insurers whose gross initial premium receipts collected in this state are less than $2 million a year or to an insurer with regard to fidelity, surety, or guaranty bonds. |
| Notice of Toll-Free Telephone Numbers and Information & Complaint Procedures |
28 TAC §1.601, Texas Administrative Code |
To satisfy requirements for §521.005, §§521.051 - 521.056, and §§521.101 - 521.103 (formerly Article 1.35, 1.35D and 21.71) noted above. |
| RATES |
| Filing Standards |
| Mortgage Guaranty and Mortgage Guaranty Pool - File and Use |
Article 21.50, Texas Insurance Code |
Each insurer shall file with the Commissioner all rates, supplementary rating information, and reasonable and pertinent supporting information for risks written in this state, at least 15 days before they are to become effective. |
| Required Documentation |
| Refer to Property & Casualty Filings Made Easy |
Go to Property & Casualty Filings Made Easy now |
Texas Department of Insurance
