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Texas Department of Insurance
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Commissioner’s Bulletin # B-0073-02

December 20, 2002


To:   ALL COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS OR OTHER INSURERS WRITING PROPERTY AND CASUALTY INSURANCE IN THE STATE OF TEXAS AND TO OTHER AGENTS AND REPRESENTATIVES AND THE PUBLIC GENERALLY

Re:   Commissioner's Order No. 02-1269, adoption of §21.1007 concerning prohibition of the use of underwriting guidelines based on a water damage claim.


The Commissioner of Insurance, by Commissioner's Order No. 02-1269, has adopted 28 TAC §21.1007. The new rule addresses the use of an unfair underwriting guideline and promotes the affordability and availability of residential property insurance by prohibiting insurers from the use of an underwriting guideline based solely upon a single prior claim for water damage either by the consumer or on the property sought to be insured in making a decision regarding the writing of residential property insurance.

The rule provides that failure to comply constitutes a violation of Insurance Code Article 21.21.

The Commissioner's Order and full text of the new rule may be accessed on our web site as follows:

www.tdi.state.tx.us/rules/1206-059.html

The above rule is effective December 26, 2002. Any questions regarding this bulletin may be directed to Gary Julian at 512-322-2266 or Gary.Julian@tdi.state.tx.us.

Marilyn Hamilton, Associate Commissioner
Property & Casualty Program, MC 104-PC



For more information, contact: ChiefClerk@tdi.texas.gov