28 Tex. Admin. Code § 5.7002 - Cancellations
(a) An insurer may cancel a personal
automobile policy if it has been in effect for more than 59 days for only the
following reasons:
(1) the failure of the
insured to discharge his or her obligation in the payment of premium for the
policy or any installment thereof, whether payable directly to the company or
its agent or indirectly under any premium finance plan or extension of
credit;
(2) the suspension or
revocation of the driver's license or motor vehicle registration of the named
insured or of any other operator who either resides in the same household or
customarily operates an automobile insured under the policy. Provided, however,
a company may not cancel if the policyholder consents to the attachment of an
endorsement eliminating coverage when the driver whose license is suspended or
revoked is operating the vehicle;
(3) the department determines that the
continuation of the policy would violate or place the company in violation of
the Insurance Code or any other law governing the business of insurance in this
state; or
(4) the insured submits a
fraudulent claim.
(b) An
insurer may cancel a homeowners insurance policy if it has been in effect for
more than 59 days for only the reasons provided under subsection (c) of this
section. An insurer may cancel any of the following policies that have been in
effect for more than 89 days for only the reasons provided under subsection (c)
of this section:
(1) farm or ranch owners
policies;
(2) standard fire
policies insuring:
(A) a one-family dwelling
or a duplex; or
(B) the contents of
a one-family dwelling, a duplex, or an apartment; or
(3) insurance policies providing property and
casualty coverage, other than a fidelity, surety, or guaranty bond, to:
(A) this state;
(B) an agency of this state;
(C) a political subdivision of this state,
including:
(i) a municipality or
county;
(ii) a school district or
junior college district;
(iii) a
levee improvement district, drainage district, or irrigation
district;
(iv) a water improvement
district, water control and improvement district, or water control and
preservation district;
(v) a
freshwater supply district;
(vi) a
navigation district;
(vii) a
conservation and reclamation district;
(viii) a soil conservation
district;
(ix) a communication
district;
(x) a river authority;
and
(xi) councils and courts;
or
(D) any other
governmental agency whose authority derives from the laws and constitution of
this state.
(c) An insurer may cancel any of the policies
under subsection (b) of this section for only the following reasons:
(1) the failure of the insured to discharge
his or her obligation in the payment of premium for the policy or any
installment thereof, whether payable directly to the company or its agent or
indirectly under any premium finance plan or extension of credit;
(2) increase in hazard within the control of
the insured which would produce an increase in the premium rate of the
policy;
(3) the department
determines that the continuation of the policy would violate or place the
company in violation of the Insurance Code or any other law governing the
business of insurance in this state; or
(4) the insured submits a fraudulent
claim.
(d) An insurer
may not date or send the notice of cancellation for nonpayment of premium until
after the premium due date.
Notes
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