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Texas Department of Insurance
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Review Requirements Checklist – Personal Umbrella

Updated 11/16/2021 - Return to Index

Refer to Property & Casualty Filings Made Easy for required documentation.


Filing Standards
Review requirements Reference Comments
Policy Forms and Endorsements §2301.001(2), Insurance Code Policy forms and endorsements may not be unjust, unfair, inequitable, misleading or deceptive.
Prior Approval Chapter 2301, Insurance Code An insurance policy form or endorsement may not be delivered or issued for delivery in this state unless the form has been filed with and approved by the commissioner. Each filing shall be made not later than the 60th day before the date of any use or delivery for use.
Disapproval of Forms; Withdrawal of Approval §2301.007, Insurance Code The commissioner may disapprove a form filed under §2301.006 or withdraw approval of a form if the form (1) violates any law, including a rule adopted under the Texas Insurance Code, or (2) contains a provision or has a title or heading that is unjust or deceptive, encourages misrepresentation, or violates public policy.
Applications   Not Required to be Filed for Approval Unless Being Made a Part of the Policy.
Review requirements Reference Comments
Limited to Coverage Disputes Chapter 2301, Insurance Code Voluntary, post dispute arbitration only. May be either binding or non-binding.
Cancellation & Nonrenewal
Review requirements Reference Comments
Cancellation & Nonrenewal of Certain Liability Insurance Coverage §§551.051 - 551.055 & §551.004, Insurance Code Cancellation and nonrenewal of certain liability insurance policies.
Elected Officials §§551.151 & 551.152, Insurance Code May not cancel or nonrenew based solely on the fact the insured is an elected official.
Insured's Right to Cancel Chapter 2301, Insurance Code Insurance company cannot limit or restrict the insured's right to cancel a policy.
Voiding Coverage Chapter 705, Insurance Code "Void Coverage" language must comply with Chapter 705, Subchapter A, and the misrepresentation must be material.
Choice of Law
Review requirements Reference Comments
Texas Laws Govern Policies Article 21.42, Insurance Code Texas must be choice if filing contains choice of law provision.
Claims Settlement
Review requirements Reference Comments
Prompt Payment of Claims §§542.051 - 542.061, Insurance Code Prompt payment of claims. (1st Party Coverage - "Pay to," "indemnify," or "reimburse" the insured. Not "pay on behalf of.")
Notice of Settlement of Liability Claims §§542.151 - 542.154,  Insurance Code Notice of settlement of claim under casualty insurance policy. EXCEPTION - This article does not apply to a casualty policy that requires the insured's consent to settlement of a claim against the insured or to fidelity, surety, or guaranty bonds.
Contractual Limitations Period - Suits §16.070, Civil Practice & Remedies Except as provided by Subsection (b), a person may not enter a stipulation, contract, or agreement that purports to limit the time in which to bring suit on the stipulation, contract, or agreement to a period shorter than two years. A stipulation, contract, or agreement that establishes a limitations period that is shorter than two years is void in this state. The Texas Third Court of Appeals issued an opinion that acknowledges that the language providing 2 years and 1 day from the date the cause of action first accrues satisfies the statutory requirement of §16.070, Civil Practices and Remedy Code. ( Case #03-08-00408-CV
Notice Requirements §16.071, Civil Practice & Remedies A contract stipulation that requires a claimant to give notice of a claim for damages as a condition precedent to the right to sue on the contract is not valid unless the stipulation is reasonable. A stipulation that requires notification within less than 90 days is void.
Coverage Issues
Review requirements Reference Comments
Continuous or Repeated Trigger / Revised Definition of Occurrence Chapter 2301, Insurance Code If the coverage form or endorsement contains a provision amending the insuring agreement or the definition of occurrence to limit or eliminate coverage for continuous or repeated trigger losses, the restriction must be limited to that injury or damage "KNOWN" to the insured.
Examination Under Oath Chapter 2301, Insurance Code
 §151.001(a)(7), Family Code
If policy language requires examination under oath, the provision must also state that a parent or guardian may be present during any examination of a minor.
Notice of Occurrence Chapter 2301, Insurance Code Notice of occurrence in policy conditions should specify "as soon as practicable."
Review requirements Reference Comments
Punitive / Exemplary Damages Chapter 2301, Insurance Code Exclusions may be considered with appropriate rate consideration and rate analysis. A "rate analysis" is the company's actuarial justification for the rate consideration given, or not given, for use of the exclusion. This would include the reasons for the amount of any rate credit or the justification for the position that no rate credit is given. Endorsements will not be approved until P&C Actuarial acknowledges that the rates are acceptable. NOTE: Approval of a punitive/exemplary damage exclusion does not relieve an insurer of any contractual obligation to defend which may otherwise exist in the policy.
Compensatory Damages Chapter 2301, Insurance Code If insuring agreement specifies policy pays for only compensatory damages, rate consideration may be necessary as policy may not cover non-compensatory damages such as punitive exemplary damages.
Review requirements Reference Comments
Abuse, Physical Abuse or Molestation Exclusions Chapter 2301, Insurance Code If policy or endorsement contains this type exclusion, definition of "abuse" in abuse, physical abuse, or molestation exclusion must be included. Must include wording, "For purposes of this endorsement, abuse means an act which is committed with the intent to cause harm."
Asbestos, Silica, Lead and Total Pollution Exclusions Chapter 2301, Insurance Code These type exclusions will only be considered for approval if the request for approval of the coverage form/endorsement is accompanied by corresponding rate consideration and rate analysis. A "rate analysis" is the company's actuarial justification for the rate consideration given, or not given, for use of the exclusion. This would include the reasons for the amount of any rate credit or the justification for the position that no rate credit is given. Forms/endorsements will not be approved until P&C Actuarial acknowledges that rates are acceptable. Must attach a disclosure form to every policy to which a total pollution exclusion is attached. The disclosure form does not have to be signed by the insured.
Nuclear Energy Liability Exclusion General Casualty Bulletins Nos. 547 & 548 If there is a Nuclear energy liability exclusion endorsement, must include definition of "waste" as per General Casualty Bulletins 547 & 548.
Fully Earned Premium/Retention of Minimum Earned Premium
Review requirements Reference Comments
Fully Earned Premium / Retention of Minimum Earned Premium Chapter 2251 & Chapter 2301, Insurance Code and 28 TAC §5.9320, Texas Administrative Code TDI will consider approving fully earned premium only for risks with exposure during a period certain, such as special events and weather policies.

TDI will consider approving minimum earned premium only if it is a nominal amount.

The company must file appropriate rates associated with a minimum or fully earned premium.
General Change Endorsements
Review requirements Reference Comments
May Not Manuscript Coverage Once Approved Chapter 2301, Insurance Code Coverage forms are prior approval. Change endorsements may be used to change insured address, etc. but may not be used to change, alter or "clarify" coverage in any way. Company must provide verification that the endorsement will not be used to change, alter, or clarify coverage. Will be considered violation of prior approval laws.
Rebating or Discrimination
Review requirements Reference Comments
Prohibited Practices and Rebates Related to Policies Chapter 1806, Insurance Code Inducements prohibited.
Indicates new addition since last update.Political Affiliation and Expression Chapter 544, Subchapter M, Insurance Code Except as provided by Section 544.603, a person may not refuse to insure or provide coverage to an individual, refuse to continue to insure or provide coverage to an individual, limit the amount, extent, or kind of coverage available for an individual, or charge an individual a rate that is different from the rate charged to other individuals for the same coverage because of the individual's political affiliation or expression.
Toll Free Information
Review requirements Reference Comments
Notice to Accompany Policy §521.005, Insurance Code Texas Insurance Code requires a brief written notice of suggested procedure to be followed by the policyholder in the event of a dispute concerning a policyholder's claim or premium. The notice must include the name and address of the Department and the toll-free telephone number maintained under §§521.051 - 521.056, Texas Insurance Code.
Department Toll-Free Number for Information and Complaints §§521.051 - 521.056, Insurance Code Toll-Free number for the Texas Department of Insurance.
Insurer Toll-Free Number for Information and Complaints §§521.101 - 521.103, Insurance Code Insurer's requirement to maintain toll-free number to provide information concerning policies issued by the insurer and to accept complaints from policyholder. Article contains an exception for insurers whose gross initial premium receipts collected in this state are less than $2 million a year.
Notice of Toll-Free Telephone Numbers and Information & Complaint Procedures 28 TAC §1.601 & §1.602, Texas Administrative Code and Commissioner’s Order 3952 To satisfy requirements for §521.005, §§521.051 - 521.056, and §§521.101 - 521.103 noted above.
Texas Lloyds, Mutual, Reciprocals and Participating Stock Cos.
Review requirements Reference Comments
Special Policy Conditions General Casualty Bulletins Nos. 276, 443, and 446 Requiring specific language be contained in policies issued by Lloyds, Mutuals, Reciprocals, and Participating Stock Companies.


Filing Standards
Review requirements Reference Comments
File & Use Chapter 2251, Insurance Code Each insurer shall file with the Commissioner all rates, supplementary rating information, and reasonable and pertinent supporting information for risks written in this state.


Filing Standards
Review requirements Reference Comments
File & Use Chapter 2301 & Chapter 2251, Insurance Code Manual rules should reflect specific requirements for usage of policy forms, endorsements, and disclosures.


Filing Standards
Review requirements Reference Comments
Fees for Paper Checks Prohibited §116.002, Business and Commerce Code An insurer or agent may not charge a fee for issuing payment via a paper check.

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Last updated: 11/2/2022