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.