CHAPTER 2004. RESIDENTIAL PROPERTY INSURANCE IN UNDERSERVED AREAS
INSURANCE CODE
TITLE 10. PROPERTY AND CASUALTY INSURANCE
SUBTITLE D. FIRE INSURANCE AND ALLIED LINES,
INCLUDING RESIDENTIAL PROPERTY INSURANCE
CHAPTER 2004. RESIDENTIAL PROPERTY INSURANCE IN UNDERSERVED AREAS
Sec. 2004.001. DEFINITION. In this chapter, "residential
property insurance" means insurance against loss to real or
tangible personal property at a fixed location that is provided
through a homeowners insurance policy, residential fire and
allied lines insurance policy, or farm and ranch owners insurance
policy.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2004.002. DESIGNATION OF UNDERSERVED AREAS. (a) The
commissioner by rule may designate an area as an underserved area
for residential property insurance.
(b) In determining which areas to designate as underserved, the
commissioner shall consider:
(1) whether residential property insurance is not reasonably
available to a substantial number of owners of insurable property
in the area; and
(2) any other relevant factor as determined by the commissioner.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2004.003. AUTHORIZATION FOR ISSUANCE OF INSURANCE. An
insurer authorized to write property or casualty insurance in
this state, including a Lloyd's plan and a reciprocal or
interinsurance exchange, that writes residential property
insurance in this state may write that insurance on forms adopted
under this chapter.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2004.004. EXCLUSION OF CERTAIN COVERAGE. Insurance
provided under this chapter may not include windstorm and hail
insurance coverage for a risk eligible for that coverage under
Chapter 2210.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2004.005. AVAILABILITY OF COVERAGE. In a designated
underserved area, each insurer described by Section 2004.003
shall provide to the insurer's agents, and the agents shall offer
to all insureds, the full range of coverages prescribed under
this chapter subject to the insurer's applicable rates and
underwriting guidelines.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2004.006. POLICY FORMS. (a) The commissioner shall adopt
policy forms for residential property insurance that are
specifically for use in designated underserved areas. The policy
forms must include a basic policy covering fire and allied lines
perils with endorsements providing additional coverage at the
insured's option.
(b) An insurer writing insurance in an underserved area may use
the policy forms adopted under this chapter.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2004.007. INAPPLICABILITY OF CERTAIN LAWS TO PREMIUMS. The
premium for an insurance policy written under this chapter is
not:
(1) subject to tax under Chapter 221; and
(2) considered net direct premiums under Section 2210.003(7).
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2004.008. RATES. Rates for coverage provided under this
chapter are determined according to the provisions of this code
applicable to the insurer providing the coverage.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.