Texas Insurance Commissioner Jose Montemayor issued an order on Feb. 26, 2003 requiring residential property insurers to file with the Texas Department of Insurance rates and supporting information as required in Senate Bill 310, which was recently signed into law by Gov. Rick Perry.
The information will be used in a report to be generated by Montemayor and submitted to the Texas Legislature pursuant to Insurance Code Chapter 5, Subchapter P, Article 5.141, enacted by the 78th Legislature.
Article 5.141, §3(a) requires insurers to file residential property insurance rates and supporting information with the Commissioner in accordance with the requirements determined by the Commissioner under Article 5.141. Section 3(c) of the article sets forth the general types of information that the insurer must file in a format specified by the Commissioner, including an electronic format.
Article 5.141, §3(d) requires each insurer that has a share of the residential property insurance market in this state of five percent or more to file the rating information required under §3 and, furthermore, provides that the Commissioner shall determine which insurers that have a share of the residential property insurance market in this state of less than five percent are required to file the rating information under §3.
Article 5.141, §3(e) provides that the Commissioner shall determine the date on which the filing is due. Section 3(g) of the article provides that the Commissioner shall issue an order specifying the information that insurers must file to comply with Article 5.141 and the date on which the filing is due. Section 3(h) of the article provides that the Commissioner is not required to hold a hearing before issuing the order.
Article 5.141, §1 requires on a one-time basis that, immediately after the effective date of Article 5.141, insurers writing residential property insurance in this state (holding five percent or more of the residential property market in this state and other insurers designated by the Commissioner) must file rates and supporting data with the Commissioner for the purpose of the preparation of a summary report for submission to the 78th Legislature.
Article 5.141, §6 requires the Commissioner to prepare a summary report from the information submitted under Article 5.141, §3. Section 6 of the article further requires that the report shall contain a review of the rates, presented in a manner that protects the identity of individual insurers: (1) to inform the legislature as to whether the rates are just, adequate, and reasonable and not excessive or unfairly discriminatory; and (2) to assist the legislature in the determination of the most effective and efficient regulatory system for residential property insurance in Texas.
Article 5.141, §2 defines “residential property insurance” as “insurance against loss to residential real property at a fixed location or tangible personal property provided in a homeowners policy, which includes a tenant policy, a condominium owners policy, or a residential fire and allied lines policy.”
For more information and to read the full text of the order, access the TDI Web site at www.tdi.state.tx.us.
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