Texas Insurance Code - Not Codified - Article 5.145. Policy Forms For Personal Automobile Insurance Coverage And Residential Property Insurance Coverage
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Texas Laws > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Article 5.145. Policy Forms For Personal Automobile Insurance Coverage And Residential Property Insurance Coverage
Article: 5.96A 5.97 5.97A 5.98 5.102 5.131 5.144 5.145 5.171 5.172 7.01 7.02 7.19-1 7.20 7.20-1
Art. 5.145. POLICY FORMS FOR PERSONAL AUTOMOBILE INSURANCE
COVERAGE AND RESIDENTIAL PROPERTY INSURANCE COVERAGE.
Article repealed effective April 1, 2007
Sec. 1. In this article:
(1) "Insurer" means an insurance company, reciprocal or
interinsurance exchange, mutual insurance company, capital stock
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, if that affiliate is
authorized to write and is writing personal automobile insurance or
residential property insurance in this state. The term does not
(A) the Texas Windstorm Insurance Association under Article
21.49 of this code;
(B) the FAIR Plan Association under Article 21.49A of this
(C) the Texas Automobile Insurance Plan Association under
Article 21.81 of this code.
(2) "Personal automobile insurance" means motor vehicle
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 an individual or 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 residential real property at a fixed
location, or tangible personal property, that is provided in a
homeowners policy, including a tenants policy, a condominium owners
policy, or a residential fire and allied lines policy.
Regulation of policy forms and endorsements
Sec. 2. (a) Notwithstanding any other provision in this code
and except as provided by this section, an insurer is governed by
the provisions of Section 8, Article 5.13-2 of this code, relating
to policy forms and endorsements for personal automobile insurance
and residential property insurance.
(b) An insurer may continue to use the policy forms and
endorsements promulgated, approved, or adopted under Articles 5.06
and 5.35 of this code on notification to the commissioner in writing
that the insurer will continue to use those forms.
Requirements for forms; plain language requirement
Sec. 3. (a) Each form filed under this article must comply
with applicable state and federal law.
(b) Each form for a policy of personal automobile insurance
must provide the coverages mandated under Articles 5.06-1 and
5.06-3 of this code unless the coverages are rejected by the named
insured in the manner provided by those articles.
(c) A form may not be used if it is not in plain language.
For the purposes of this section, a form is written in plain
language if it achieves the minimum score established by the
commissioner on the Flesch reading ease test or an equivalent test
selected by the commissioner or, at the option of the commissioner,
if it conforms to the language requirements in a National
Association of Insurance Commissioners model act relating to plain
language. This section does not apply to policy language that is
mandated by state or federal law.
Personal automobile insurance
Sec. 4. (a) A contract or agreement that is not written into
the application for insurance coverage and the personal automobile
(1) is void and of no effect; and
(2) violates this article and Subchapter A of this chapter.
(b) A contract or agreement described by Subsection (a) of
this section constitutes grounds for the revocation of the
certificate of authority of an insurer to write personal automobile
insurance in this state.
Public insurance counsel
Sec. 5. Notwithstanding Article 1.35A of this code, the
office of public insurance counsel may submit written comments to
the commissioner and otherwise participate regarding individual
company filings made under Article 5.13-2 of this code.
Sec. 6. The commissioner may adopt reasonable and necessary
rules to implement this article.
Added by Acts 2003, 78th Leg., ch. 206, Sec. 2.01, eff. June 11,
Last modified: August 11, 2007