On February 19th, the Texas Department of Insurance (TDI) issued Bulletins # B-0005-21, # B-0006-21, and # B-0007-21 to provide guidance regarding insurance policies addressing the recent winter storm.
Bulletin # B-0005-21 requests that insurers suspend policy vacancy provisions as reasonably necessary. TDI also expects insurers to work with policyholders affected by the disaster who need more time to pay premiums to continue coverage. This may include minimizing penalties or charges for late payments or temporarily suspending payment or repayment plans.
For more details regarding this Bulletin, please see the link HERE.
Bulletin # B-0006-21 was issued as a reminder to insurers regarding emergency adjusters as well as required procedures when handling disaster-related claimed. Some of these procedures include homeowner entitlement to have their home repaired by the person of their choice, insurer refraining from in unfair claim settlement practices, etc.
For more details regarding these procedures can be found HERE.
Bulletin # B-0007-21 requests that insurers do not reclassify, rerate, cancel, nonrenew, or refuse to provide coverage solely because of commercial automobile policyholders helping with the relief effort for the disaster. Additionally, Insurers should not rerate, cancel, nonrenew, refuse to provide coverage, or change a policyholder’s classification or premium solely because a policyholder is a victim of the disaster. TDI also requires that insurers provide reasonable exceptions to an insurer’s rates, rating classifications, or underwriting rules if a consumer’s credit information is directly influenced a catastrophic illness or injury, the death of a family member, and more.
For more details regarding this Bulletin, please see the link HERE.
For more information on these Bulletins, or any other regulatory compliance matter, please contact Westmont Associates, Inc.
