The Texas Department of Insurance had announced that it had adopted property insurance rules that have received changes thanks to legislation passed in both 2013 and 2015. The rules involve the obligatory inclusion of the declarations page and an alteration to the state’s catastrophic funding mechanisms.
Due to the passage of SB 112 in 2013, insurers are now obligated to include the declarations page with their residential property insurance policy forms. The declarations page should list each deductible under the policy and include the exact amount for each deductible. While effective since Sept. 1, 2013, it previously applied only to an insurance policy delivered, issued for delivery, or renewed on or after Jan. 1, 2014.
The Department of Insurance also adopted rules that enacted sections of SB 900, passed 2015. The bill made changes to the Texas Windstorm Insurance Association’s (TWIA) sources of catastrophic loss funding, among other changes. The bill allows for an assessment on property insurers operating in the state of up to $1 billion in the event the TWIA runs out of funding to pay for the bills. The bill prohibits insurers from imposing premium surcharges or tax credit to recoup on those assessments.
