2005 Texas Insurance Code CHAPTER 2004. RESIDENTIAL PROPERTY INSURANCE IN UNDERSERVED AREAS

INSURANCE CODE

CHAPTER 2004. RESIDENTIAL PROPERTY INSURANCE IN UNDERSERVED AREAS


	§ 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, § 2, eff. April 1, 2007.           


	§ 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, § 2, eff. April 1, 2007.           


	§ 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, § 2, eff. April 1, 2007.           


	§ 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, § 2, eff. April 1, 2007.           


	§ 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, § 2, eff. April 1, 2007.           


	§ 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, § 2, eff. April 1, 2007.           


	§ 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, § 2, eff. April 1, 2007.           


	§ 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, § 2, eff. April 1, 2007.