28 Tex. Admin. Code § 5.9915 - Inspections
(a) The underwriting rules must determine the
inspection criteria for risks to be written by FAIR Plan. FAIR Plan may issue a
policy of residential property insurance or property owners' association
insurance on certain types of risks without an inspection in accordance with
the underwriting rules.
(b) An
inspection must be made only of property requiring an inspection to determine
eligibility for FAIR Plan coverage in accordance with the underwriting rules.
The inspection must be free of charge to the applicant. An inspection request
may be made by the owner, their representative, or an agent.
(c) All inspection reports must be in writing
and must contain the information necessary to determine eligibility for
coverage under FAIR Plan's underwriting rules. After the inspection report has
been completed, a copy of the completed inspection report and any photograph
indicating the pertinent features of the building construction, maintenance,
and occupancy must be sent within 10 days to FAIR Plan.
(d) The inspection report must contain
information describing:
(1)
occupancy;
(2) information
necessary for underwriting and rating;
(3) construction; and
(4) physical
deficiencies.
(e) If an
interior inspection is necessary to determine eligibility of property described
in an application submitted to FAIR Plan, the inspector must contact the
applicant and arrange for the applicant to be present during the inspection.
The inspector may not recommend correction of physical deficiencies or advise
the applicant on whether FAIR Plan will provide coverage.
(f) FAIR Plan must, as soon as practical but
not to exceed 30 days after receipt of the inspection report, advise the
applicant and agent of the following.
(1) If
the inspector finds that the property meets the underwriting rules, FAIR Plan
must notify the applicant in writing and issue a policy or binder.
(2) FAIR Plan must indicate to the applicant
any condition charges that have been applied by FAIR Plan in accordance with §
5.9917(h) of
this subchapter (relating to Application, Binder, Policy Issuance, Renewal, and
Cancellation).
(3) If the property
is not insurable based on the underwriting rules, FAIR Plan must notify the
applicant in writing why the property is not insurable.
(g) If, at any time, the applicant makes
improvements in the property or its condition that the applicant believes are
sufficient to make the property insurable, an inspector must reinspect the
property upon request. The applicant is eligible for one reinspection any time
within 60 days after the initial inspection. If, upon reinspection, the
property meets FAIR Plan's underwriting rules, FAIR Plan must notify the
applicant in writing and issue a policy or binder.
(h) If an inspection report shows that a
property has unrepaired damages or is in violation of any building, housing,
air pollution, sanitation, health, fire, or safety code, ordinance, or rule, or
if an applicant otherwise has received written notice of any violation of a
code, ordinance, or rule, the applicant must submit to FAIR Plan a detailed
plan that indicates the manner and estimated period of time in which the
violation will be corrected or the damage repaired. FAIR Plan may not provide
coverage unless the necessary corrections are completed to the satisfaction of
FAIR Plan.
(i) FAIR Plan may, for
cause upon information or well-founded belief, without notice to the insured at
any time during the policy term, inspect an insured property to determine
whether the property meets the underwriting rules. FAIR Plan need not afford an
insured the opportunity to be present during a reinspection nor furnish the
insured with a copy of a reinspection report, unless requested. Reinspections
may also occur:
(1) upon change in type of
occupancy; or
(2) on a reasonable
periodic schedule.
(j)
FAIR Plan may cancel or refuse to renew a policy on the basis of the
reinspection report, according to the policy terms and this plan of
operation.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.