2005 Texas Insurance Code CHAPTER 2301. POLICY FORMS

INSURANCE CODE

SUBTITLE I. POLICY FORMS IN GENERAL

CHAPTER 2301. POLICY FORMS

SUBCHAPTER A. POLICY FORMS GENERALLY


	§ 2301.001. PURPOSE.  The purposes of this subchapter are 
to:             
		(1)  promote the availability of insurance;                                   
		(2)  regulate the insurance forms used for lines of 
insurance to which this subchapter applies to ensure that the forms 
are not unjust, unfair, inequitable, misleading, or deceptive;  and
		(3)  provide regulatory procedures for the maintenance 
of appropriate information reporting systems.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.002. DEFINITIONS.  In this subchapter:                               
		(1)  "Form" means an insurance policy form or a printed 
endorsement form.   
		(2)  "Residential property insurance" means insurance 
coverage against loss to real or tangible personal property at a 
fixed location that is provided through a homeowners insurance 
policy, including a tenants insurance policy, a condominium owners 
insurance policy, or a residential fire and allied lines insurance 
policy.
		(3)  "Supporting information" means any information 
required by the department to be filed.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.003. APPLICABILITY OF SUBCHAPTER.  (a) This 
subchapter applies to: 
		(1)  an insurer to which Article 5.13 applies, other 
than the Texas Windstorm Insurance Association, the FAIR Plan 
Association, and the Texas Automobile Insurance Plan Association;  
and
		(2)  except as provided by Subsections (c) and (d), a 
Lloyd's plan, reciprocal or interinsurance exchange, and county 
mutual insurance company with respect to the lines of insurance 
described by Subsection (b).
	(b)  This subchapter applies to all lines of the following 
kinds of insurance written under an insurance policy or contract 
issued by an insurer authorized to engage in the business of 
insurance in this state:
		(1)  general liability insurance;                                             
		(2)  residential and commercial property insurance, 
including farm and ranch insurance and farm and ranch owners 
insurance;
		(3)  personal and commercial casualty insurance, 
except as provided by Section 2301.005;
		(4)  medical professional liability insurance;                                
		(5)  fidelity and surety bonds other than criminal 
court appearance bonds;  
		(6)  personal umbrella insurance;                                             
		(7)  personal liability insurance;                                            
		(8)  guaranteed auto protection (GAP) insurance;                              
		(9)  involuntary unemployment insurance;                                      
		(10)  financial guaranty insurance;                                           
		(11)  inland marine insurance;                                                
		(12)  rain insurance;                                                         
		(13)  hail insurance on farm crops;  and                                      
		(14)  personal and commercial automobile insurance.                           
	(c)  Section 2301.009 does not apply to a Lloyd's plan or a 
reciprocal or interinsurance exchange with respect to commercial 
property insurance.
	(d)  This subchapter does not apply to a Lloyd's plan or 
reciprocal or interinsurance exchange with respect to inland marine 
insurance, rain insurance, or hail insurance on farm crops.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.004. EXEMPTION FOR LARGE RISKS.  Sections 
2301.006, 2301.007(a) and (b), and 2301.008 do not apply to forms 
for use with an insured that has:
		(1)  total insured property values of $5 million or 
more;                   
		(2)  total annual gross revenues of $10 million or 
more;  or                
		(3)  a total premium of $25,000 or more for property 
insurance, $25,000 or more for general liability insurance, or 
$50,000 or more for multiperil insurance.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.005. REGULATION OF INLAND MARINE FORMS.  The 
commissioner shall adopt rules governing the manner in which forms 
for the various classifications of risks insured under inland 
marine insurance, as determined by the commissioner, are regulated.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.006. FILING AND APPROVAL OF FORMS.  (a) Except as 
provided by Section 2301.008, an insurer may not deliver or issue 
for delivery in this state a form for use in writing insurance 
described by Section 2301.003 unless the form has been filed with 
and approved by the commissioner.
	(b)  An insurer must file the form not later than the 60th day 
before the date an insurer uses the form or delivers the form for 
use.
	(c)  A filed form is approved at the expiration of 60 days 
after the date the form is filed unless the commissioner by order 
approves or disapproves the form during the 60-day period.  The 
commissioner's approval of a filed form constitutes a waiver of any 
unexpired portion of the 60-day period.
	(d)  The commissioner may extend by not more than 10 days the 
60-day period described by Subsection (c) during which the 
commissioner may approve or disapprove a form filed by an insurer.  
The commissioner shall notify the insurer of the extension before 
the expiration of the 60-day period.
	(e)  A filed form for which an extension has been granted 
under Subsection (d) is considered approved at the expiration of 
the extension period described by that subsection absent an earlier 
approval or disapproval of the form.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.007. DISAPPROVAL OF FORMS;  WITHDRAWAL OF 
APPROVAL.  (a) The commissioner may disapprove a form filed under 
Section 2301.006 or withdraw approval of a form if the form:
		(1)  violates any law, including a rule adopted under 
this code;  or        
		(2)  contains a provision or has a title or heading that 
is unjust or deceptive, encourages misrepresentation, or violates 
public policy.
	(b)  For good cause shown, the commissioner may withdraw 
approval of a form after notice and hearing.
	(c)  An order issued by the commissioner disapproving a form, 
or a notice of the commissioner's intention to withdraw approval of 
a form, must state the grounds for the disapproval or withdrawal of 
approval in sufficient detail to reasonably inform the insurer of 
those grounds.
	(d)  An order of withdrawal of approval of a form takes 
effect on the date prescribed by the commissioner in the order.  The 
commissioner may not prescribe a date earlier than the 30th day 
after the effective date of the order, as prescribed by the 
commissioner.
	(e)  An insurer may not use a form in this state after the 
commissioner disapproves the form or withdraws approval of the 
form.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.008. ADOPTION AND USE OF STANDARD FORMS.  The 
commissioner may adopt standard insurance policy forms, printed 
endorsement forms, and related forms other than insurance policy 
forms and printed endorsement forms, that an insurer may use 
instead of the insurer's own forms in writing insurance subject to 
this subchapter.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.009. PUBLIC INSPECTION OF INFORMATION.  Each 
filing made, and any supporting information filed, under this 
subchapter is open to public inspection as of the date of the 
filing. 

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           

SUBCHAPTER B. POLICY FORMS FOR PERSONAL AUTOMOBILE INSURANCE 
COVERAGE AND RESIDENTIAL PROPERTY INSURANCE COVERAGE


	§ 2301.051. DEFINITIONS.  In this subchapter:                               
		(1)  "Insurer" means an insurance company, reciprocal 
or interinsurance exchange, mutual insurance company, capital 
stock insurance company, county mutual insurance company, Lloyd's 
plan, or other legal entity authorized to write personal automobile 
insurance or residential property insurance in this state.  The 
term includes an affiliate, as described by this code, that is 
authorized to write and is writing personal automobile insurance or 
residential property insurance in this state.  The term does not 
include:
			(A)  the Texas Windstorm Insurance Association;                              
			(B)  the FAIR Plan Association;  or                                          
			(C)  the Texas Automobile Insurance Plan 
Association.                      
		(2)  "Personal automobile insurance" means automobile 
insurance coverage for the ownership, maintenance, or use of a 
private passenger, utility, or miscellaneous type motor vehicle, 
including a motor home, trailer, or recreational vehicle, that is:
			(A)  owned or leased by one or more individuals;  
and                      
			(B)  not primarily used for the delivery of goods, 
materials, or services, other than for use in farm or ranch 
operations.
		(3)  "Residential property insurance" means insurance 
coverage against loss to tangible personal property or to 
residential real property at a fixed location that is provided 
through a homeowners insurance policy, including a tenants 
insurance policy, a condominium owners insurance policy, or a 
residential fire and allied lines insurance policy.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.052. REGULATION OF POLICY FORMS AND 
ENDORSEMENTS.  (a)  Notwithstanding any other provision of this 
code and except as provided by this section, Subchapter A applies to 
an insurer with respect to insurance policy forms and endorsements 
for personal automobile insurance and residential property 
insurance.
	(b)  An insurer may continue to use an insurance policy form 
or endorsement promulgated, approved, or adopted under Article 5.06 
or 5.35 before June 11, 2003, on written notification to the 
commissioner that the insurer will continue to use the form or 
endorsement.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.053. REQUIREMENTS FOR FORMS;  PLAIN-LANGUAGE 
REQUIREMENT.  (a) Each form filed in accordance with this 
subchapter must comply with applicable state and federal law.
	(b)  Each form for a personal automobile insurance policy 
must provide the coverages mandated under Subchapters C and D, 
Chapter 1952, unless the coverages are rejected by the named 
insured in the manner provided by those subchapters.
	(c)  A form may not be used unless the form is written in 
plain language.  For purposes of this section, a form is written in 
plain language if:
		(1)  the form achieves the minimum score established by 
the commissioner on the Flesch reading ease test or an equivalent 
test selected by the commissioner;  or
		(2)  at the commissioner's option, the form conforms to 
the language requirements in a National Association of Insurance 
Commissioners model act relating to plain language.
	(d)  Subsection (c) does not apply to policy language that is 
mandated by state or federal law.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.054. CERTAIN CONTRACTS OR AGREEMENTS PROHIBITED;  
REVOCATION OF CERTIFICATE OF AUTHORITY.  (a) A contract or 
agreement that is not written into an application for personal 
automobile insurance coverage and the personal automobile 
insurance policy is void and violates this code.
	(b)  A contract or agreement described by Subsection (a) 
constitutes grounds for the revocation of an insurer's certificate 
of authority to write personal automobile insurance in this state.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2301.055. RULES.  The commissioner may adopt reasonable 
and necessary rules to implement this subchapter.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.