2005 Texas Insurance Code CHAPTER 2006. PREMIUM RATE DISCOUNTS


INSURANCE CODE
CHAPTER 2006. PREMIUM RATE DISCOUNTS
SUBCHAPTER A. OPTIONAL PREMIUM DISCOUNT FOR USE OF INSULATING CONCRETE FORM SYSTEM
§ 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, § 2, eff. April 1, 2007. § 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, § 2, eff. April 1, 2007. § 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, § 2, eff. April 1, 2007. § 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, § 2, eff. April 1, 2007. § 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, § 2, eff. April 1, 2007.
SUBCHAPTER B. OPTIONAL PREMIUM DISCOUNT FOR CERTAIN RESIDENTIAL PROPERTY INSURANCE POLICIES
§ 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, § 2, eff. April 1, 2007. § 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 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. Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007. § 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, § 2, eff. April 1, 2007. § 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, § 2, eff. April 1, 2007. § 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, § 2, eff. April 1, 2007.

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