Texas Insurance Code - Not Codified - Article 5.35. Policy Forms
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Texas Laws > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Article 5.35. Policy Forms
Art. 5.35. POLICY FORMS. (a) The commissioner shall adopt
policy forms and endorsements for each kind of insurance subject to
this subchapter other than a line regulated under Article 5.13-2 of
this code that may be used by an insurer without filing for approval
to use such forms.
(b) The commissioner may also adopt policy forms and
endorsements of national insurers or policy forms and endorsements
adopted by a national organization of insurance companies or
similar organization on policy forms and endorsements. Policy
forms and endorsements may be adopted under this subsection for
each kind of insurance subject to this subchapter other than a line
regulated under Article 5.13-2 of this code on the request of an
insurer. For purposes of this subsection, "national insurer" means
an insurer subject to this article that, either directly or
together with its affiliates as part of an insurance holding
company system as those terms are defined by Article 21.49-1 of this
code, is licensed to do business and write the kinds of insurance
that are subject to this subchapter in 26 or more states and
maintains minimum annual direct written premiums for residential
property insurance of $750 million in the aggregate for all states.
(c) The commissioner may approve the use of policy forms and
endorsements adopted by a national organization of insurance
companies or a similar organization, if such forms or endorsements
are filed with and are approved by the commissioner in accordance
with this article.
(d) An insurer may use an endorsement to the policy forms
adopted or approved by the commissioner under this article if the
endorsement is approved by the commissioner pursuant to this
article.
(e) Unless adopted or approved by the commissioner pursuant
to Subsection (a), (b), or (c) of this article or, in the case of an
endorsement, under Subsection (d) of this article, an insurance
policy or endorsement for use in writing the types of insurance
subject to this article may not be delivered or issued for delivery
in this state.
(f) Each filing pursuant to Subsection (c) or (d) of this
article shall be made not later than the 60th day before the date of
any use or delivery for use. At the expiration of the 60-day
period, a filed form or endorsement is approved unless before the
expiration of the 60 days the commissioner either disapproves the
form or endorsement by order or approves the form or endorsement.
Approval of a form or endorsement by the commissioner constitutes a
waiver of any unexpired portion of the 60-day period. The
commissioner may extend, by not more than an additional 30 days, the
period during which the commissioner may approve or disapprove a
form or endorsement by giving notice to the filer of the extension
before the expiration of the initial period. At the expiration of
any extension and in the absence of any earlier approval or
disapproval, the form or endorsement shall be considered approved.
For good cause shown, the commissioner may withdraw the
commissioner's approval at any time after notice and hearing.
(g)(1) The commissioner may disapprove a policy form or
endorsement filed under this article, or withdraw any previous
approval thereof, if the policy form or endorsement:
(A) violates or does not comply with this code, or any valid
rule relating thereto duly adopted by the commissioner, or is
otherwise contrary to law; or
(B) contains provisions or has any titles or headings which
are unjust, encourage misrepresentation, are deceptive, or violate
public policy.
(2) The commissioner's order disapproving any form or
endorsement or any notice of the commissioner's intention to
withdraw a previous approval must state the grounds for the
disapproval in enough detail to reasonably inform the filer of the
grounds. An order of withdrawal of a previously filed form or
endorsement takes effect on the expiration of the prescribed period
but not sooner than the 60th day after the effective date of the
withdrawal order, as prescribed by the commissioner.
(h) The commissioner may not adopt or approve policy forms
for personal fire or homeowner's insurance or any endorsement to
the policy if the policy or endorsement is not in plain language.
For the purposes of this subsection, a policy or endorsement 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 subsection does not apply to policy
language that is mandated by state or federal law.
(i) An insurer may not use in this state any form or
endorsement after disapproval of the form or endorsement or
withdrawal of approval by the commissioner.
(j) 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 pursuant to this article.
Text of subsec. (k) as added by Acts 2003, 78th Leg., ch. 206, Sec.
21.22, effective until April 1, 2007
(k)(1) Notwithstanding Subsections (a)-(j) of this article,
policy forms and endorsements for residential property insurance in
this state are regulated under Article 5.13-2 of this code.
(2) An insurer may continue to use the policy forms and
endorsements promulgated, approved, or adopted by the commissioner
under this article before the effective date of S.B. No. 14, Acts of
the 78th Legislature, Regular Session, 2003, on notification in
writing to the commissioner that the insurer will continue to use
the policy forms and endorsements promulgated, approved, or adopted
by the commissioner under this article.
Text of subsec. (k) as added by Acts 2003, 78th Leg., ch. 797, Sec. 2
(k)(1) For any policy form and endorsements approved by the
commissioner under Subsections (a), (b), or (c) of this article,
the commissioner shall promulgate a comparison form for that
policy.
(2) The comparison form shall be developed with the
assistance of the office of public insurance counsel and with input
from the public and shall be designed to explain the features and
limitations of the policy compared to other approved policies. An
insurer using a policy form may be required to develop the
comparison form and submit it for approval by the commissioner. The
comparison form shall be made available by an insurer to anyone
inquiring about the policy and shall be made available by the
department via the Internet and other means as prescribed by the
commissioner.
(3) The comparison form shall be designed to be easily read
and understood in order to facilitate comparison and understanding
of the policy and must meet the requirements of Subsection (h) of
this article. At a minimum, the comparison form shall show the
features of the policy compared to the HO-B, HO-A, and at least one
other policy form widely in use in this state.
(4) The commissioner may adopt rules to carry out the
purposes of this subsection.
Acts 1951, 52nd Leg., ch. 491.
Amended by Acts 1991, 72nd Leg., ch. 242, Sec. 2.33, eff. Sept. 1,
1991; Acts 1997, 75th Leg., ch. 1330, Sec. 13, eff. Sept. 1, 1997;
Subsec. (k) added by Acts 2003, 78th Leg., ch. 206, Sec. 21.22, eff.
June 11, 2003; Subsec. (k) added by Acts 2003, 78th Leg., ch. 797,
Sec. 2, eff. June 20, 2003; Subsec. (k) repealed by Acts 2005, 79th
Leg., ch.727, Sec. 18(g), eff. April 1, 2007.
Article: 5.30 5.31 5.32 5.33 5.33B 5.33B, ante
Art 5.34 5.35 5.35-1 5.35-2 5.35-3 5.36 5.37 5.38 5.39
Last modified: August 11, 2007
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