28 Tex. Admin. Code § 7.1809 - Restriction Plan Contents and Submission Requirements

(a) An insurer that meets the criteria under Insurance Code § 827.008 must file a proposed restriction plan with the Commissioner for review and approval.

(b) The plan must be signed by at least one officer of the insurer and must contain the following:

(1) identification, in accordance with the line of insurance designations in § 7.1803 of this title (relating to What Constitutes a Line of Insurance), as applicable to personal automobile or residential property insurance being restricted;

(2) the dates the insurer intends to begin and complete its restriction;

(3) an explanation of the reasons for restricting the writing of new business;

(4) a list of the affected rating territories; and

(5) information on Texas business, including any information necessary to assist the Commissioner in determining how market availability of the line of business proposed to be restricted may be affected including, but not limited to, the following:

(A) a description of how restricting writing new business in a rating territory may affect other related residential property or personal automobile insurance lines of business written by the insurer, such as the potential effect of discounts no longer provided to insureds;

(B) a list of any other products within the line the insurer will continue to offer in Texas; and

(C) any other information related to the restriction plan that the Commissioner deems necessary.

(c) The department will post forms and instructions on its website to assist persons in compliance with the requirements of this subchapter. Any insurer filing a restriction plan must submit the plan at the location specified on the department website.

(d) The Commissioner may modify, restrict, or limit a restriction plan as provided for under Insurance Code § 827.008(b).

(e) An insurer may not revise its underwriting guidelines in response to a catastrophic natural event that occurred within the previous six months without receiving Commissioner approval of its restriction plan under Insurance Code § 827.008.

(f) If a restriction plan results in a withdrawal under Insurance Code § 827.003 and § 827.004, the insurer must file a withdrawal plan.

Notes

28 Tex. Admin. Code § 7.1809

Adopted by Texas Register, Volume 43, Number 24, June 15, 2018, TexReg 3902, eff. 6/19/2018