Appraisal experience data call – instructions

Background and purpose

The purpose of this data call is to gather information on the appraisal experience of residential property and personal auto insurers. Appraisal has been a notable topic of public policy discussion in recent years, including as the subject of multiple bills during the 88th Legislative regular session in 2023 and invited testimony before the House Insurance Committee in September 2022.

The Texas Department of Insurance is collecting this information because although appraisal is widely allowed in policy forms, insurers do not routinely collect and report appraisal data. Accordingly, there is very little publicly available data to help understand how and when appraisal is used and what impact it has.

General reporting instructions

Insurers required to report

Below is a list of the top ten homeowners multi-peril groups and the top ten private passenger auto groups listed in TDI’s 2023 Market Conditions Annual Report.

Each admitted company* in a group listed below must report both residential property and personal auto data, even if the group is included in only one of the two lists below.

*Admitted companies that did not receive any residential property and personal auto insurance claims between July 1, 2020, and June 30, 2023, do not need to respond.

Data call overview

Please read the instructions and transmittal form carefully. The transmittal form consists of identifying information and two data reporting sections (Parts I and II). The reporting instructions differ in each section.

Transmittal form

The transmittal form contains group and company identifying information and contact information. After you complete the identifying information, the data reporting sections (Parts I and II) will open.

Part I – Summary data reporting

Part I involves aggregate data for Texas claims reported in three time periods. Admitted companies in the ten largest groups of residential property insurers and ten largest groups of personal auto insurers in Texas must report data under Part I. Each company must report data for both residential property insurance and personal auto insurance. When reporting data, fill out Part I twice: once for residential property claims, and once for personal auto claims.

Part II – Claim level detail reporting

Part II involves claim level data of each of the completed appraisals referenced in Part I, question 8. Each company that reported any completed appraisals is required to report data under Part II. When reporting data, fill out Part II twice: once for residential property claims, and once for personal auto claims.

By company reporting

Companies may report the data required in Parts I and II either by company or by group. Companies must elect one method to report and must report data in both Parts I and II using the same method.

Business to report

Residential property. Insurers must report data for residential property insurance covering single-family homes (including mobile homes), condominiums, townhomes, duplexes, and quadplexes insured under a homeowner, condominium unit owner, or a residential dwelling fire and allied lines policy. Include only claims on policies where the insurer provides coverage for the dwelling (including policies that cover condominium units). Do not include claims on renters policies or other residential dwelling fire and allied policies that only provide contents coverage.

Only report claims for mobile homeowner policies issued by the insurer using a residential property policy, reported on line 4.0 of the annual statement, and required to be reported under the Texas Statistical Plan for Residential Risks. Do not report claims for mobile homeowner policies issued by the insurer using a personal automobile policy or otherwise reported under the Texas Private Passenger Automobile Statistical Plan.

Personal auto. Insurers must report data for all personal automobile policies or policies otherwise reported under the Texas Private Passenger Automobile Statistical Plan. This includes mobile homeowner policies issued by the insurer using a personal automobile policy.

Data call instructions

Please read the instructions and transmittal form carefully. The transmittal form consists of identifying information and two data reporting sections (Parts I and II). The reporting instructions differ in each section. After you complete the identifying information, the data reporting sections (Parts I and II) will open.

Transmittal form

All insurers required to respond must complete the transmittal form.

1. My insurer is reporting by company or group. Check the first box if: (i) the insurer elects to report its data by company (not by group), or (ii) the insurer is only required to report data for a single insurance company.

   Check the second box if the insurer elects to report its data by group. Insurers that elect to report by group must also answer Question 4 below by providing the name and NAIC company number for each admitted company for which the insurer is reporting data.

2. Name of insurance company or group. Provide the name of the insurance company or group. For data reported on behalf of a group of companies, provide the group name. For data reported on behalf of a single company, provide the company name.
3. NAIC company or group number. Provide the applicable NAIC number. For data reported on behalf of a group of companies, provide the four-digit NAIC group number. For data reported on behalf of a single company, provide the company's five-digit NAIC company number.
4. Companies in group. If you are reporting on behalf of a group of companies, please list the names and NAIC company numbers of all companies in the group. If you are not reporting data by group, then write “N/A.”
5. Contact name. Provide the name of the person responsible for the data included in the submission.
6. Contact phone number. Provide the phone number for the person responsible for the data included in the submission.
7. Contact email address. Provide the email address for the person responsible for the data included in the submission.

Residential property

Part I – Summary data (residential property)

Part II – Claim level detail (residential property)

Part II involves claim level data of each of the completed appraisals referenced in Part I, Question R8. Provide answers in a Claim level detail reporting form (MS Excel) provided by TDI on the Residential Property sheet.

1. Background
   1. Claim number. Report a unique alphanumeric identifier for the claim. The insurer is not required to report the claim number the company uses for its own internal purposes. The claim number reported in this data call must be unique for each claim reported in the data call, and the insurer must maintain sufficient documentation to enable the insurer to answer specific questions about the claim by using only the claim number assigned in this data call.
   2. Date loss incurred. Report the date of loss in MM/DD/YYYY format.
   3. Date claim reported. Report the date the policyholder (or a representative of the policyholder) first notified the insurer there was a claim under the policy. Report the date in MM/DD/YYYY format.
   4. All insurers must report either county or ZIP code. Insurers may report both county and ZIP code. Insurers that elect to report county instead of ZIP code, must report county for all Part I claims. Report the county in which the residential property subject to the claim was located.
   5. ZIP code. All insurers must report either county or ZIP code. Insurers may report both county and ZIP code. Insurers that elect to report ZIP code instead of county, must report ZIP code for all Part I claims. Report the ZIP code in which the residential property subject to the claim was located.
   6. Policy type. Report the applicable policy type as follows:

      Table 1: Policy types

      Policy type	Code
      Homeowners	HO
      Mobile homeowners	MHO
      Dwelling	DW
      Condominium unit owner	CO

   7. Cause of loss. The cause of loss should reflect the original and proximate cause of loss and not any ensuing causes. Report the cause of loss code as follows:

      Table 1: Cause of loss codes

      Cause of loss (COL)	COL Code
      Fire – Internal source	05
      Fire – External source (including fire caused by lightning)	10
      Fire – Unknown source	15
      Lightning – No fire	20
      Windstorm	25
      Hail	30
      Flood or rising water	32
      Explosion	33
      Smoke	35
      Aircraft and vehicles	40
      Riot and civil commotion	45
      Vandalism and malicious mischief	50
      Collapse	55
      Discharge, leakage or overflow of water or steam from plumbing, heating, and air conditioning systems or household appliances: damage to slab or foundation	60
      Discharge, leakage or overflow of water or steam from plumbing, heating, and air conditioning systems or household appliances: other damage	61
      Freeze: damage to slab or foundation	70
      Freeze: other damage	71
      Burglary, theft, robbery	75
      Other – physical damage	80
      Other – liability and medical payments	90

      Insurers should report cause of loss codes in a manner that is consistent with how it reports causes of loss under the Texas Statistical Plan for Residential Risks.

   8. Total loss? Report if the claim was a total loss. Answer “yes” or “no.”
2. Date of appraisal demand. Report the date of appraisal demand in MM/DD/YYYY format.
3. Party demanding appraisal. Report which party demanded appraisal. Answer “claimant” or “insurer.”
4. Insurer’s initial offer amount.
5. Claimant’s initial demand or counteroffer amount.
6. Appraisal award amount.
7. Date of appraisal award. Report the date of appraisal award in MM/DD/YYYY format.
8. Was an umpire used? Answer “yes” or “no.”
9. Amount of insurer’s appraisal expenses (including the insurer’s share of any umpire fees and costs).
10. Amount of claimant’s appraisal expenses known to the insurer (such as the claimant’s share of umpire fees and costs). Report only those amounts known to the insurer.

Personal auto

Part I – Summary data (personal auto)

Part II – Claim level detail (personal auto)

Part II involves claim level data of each of the completed appraisals referenced in Part I, Question A8. Provide answers in a Claim level detail reporting form (MS Excel) provided by TDI on the Personal Auto sheet.

1. Background
   1. Claim number. Report a unique alphanumeric identifier for the claim. The insurer is not required to report the claim number the company uses for its own internal purposes. The claim number reported in this data call must be unique for each claim reported in the data call, and the insurer must maintain sufficient documentation to enable the insurer to answer specific questions about the claim by using only the claim number assigned in this data call.
   2. Date loss incurred. Report the date of loss in MM/DD/YYYY format.
   3. Date claim reported. Report the date the policyholder (or a representative of the policyholder) first notified the insurer there was a claim under the policy. Report the date in MM/DD/YYYY format.
   4. County. All insurers must report either county or ZIP code. Insurers may report both county and ZIP code. Insurers that elect to report county instead of ZIP code, must report county for all Part I claims. Report the county in which the residential property subject to the claim was located.
   5. ZIP code. All insurers must report either county or ZIP code. Insurers may report both county and ZIP code. Insurers that elect to report ZIP code instead of county, must report ZIP code for all Part I claims. Report the ZIP code in which the vehicle subject to the claim was principally garaged.
   6. Type of loss. Report the type of loss code as follows:

      Table 1: Type of loss codes

      Type of loss (TOL)	TOL code
      Collision	51
      Fire	52
      Flood and rising water	53
      Glass only	54
      Malicious mischief and vandalism	55
      Mechanical breakdown	56
      Personal effects	57
      Theft	58
      Towing and labor	59
      Windstorm, earthquake, hail, explosion, tornado, cyclone, and water damage	60
      All other	99

      Insurers should report type of loss codes in a manner that is consistent with how it reports types of loss under the Texas Private Passenger Auto Statistical Plan.

   7. Total loss? Report if the claim was a total loss. Answer “yes” or “no.”
2. Date of appraisal demand. Report the date of appraisal demand in MM/DD/YYYY format.
3. Party demanding appraisal. Report which party demanded appraisal. Answer “claimant” or “insurer.”
4. Insurer’s initial offer amount.
5. Claimant’s initial demand or counteroffer amount.
6. Appraisal award amount.
7. Date of appraisal award. Report the date of appraisal award in MM/DD/YYYY format.
8. Was an umpire used? Answer “yes” or “no.”
9. Amount of insurer’s appraisal expenses (including the insurer’s share of any umpire fees and costs).
10. Amount of claimant’s appraisal expenses known to the insurer (such as the claimant’s share of umpire fees and costs). Report only those amounts known to the insurer.

Confidentiality, format, submission, and deadline

Confidentiality

TDI requests this information under Insurance Code §38.001. An insurer must mark any information it considers to be confidential. Section 38.001 does not itself make any information confidential. Regardless of whether information is confidential, TDI may release to the public aggregate data compiled from this data call in a manner that does not identify individual insurers or groups of insurers.

Reporting format and submission

Insurers must report using:

• an online form; and
• a Claim level detail reporting form (MS Excel) (for Part II only) attached to the online form.

The online form includes the transmittal form, Part I: Summary data (residential property), Part I: Summary data (personal auto), and a button to attach the MS Excel reporting form for Part II: Claim level detail.

For Part II: Claim level detail, insurers must complete a Claim level detail reporting form provided by TDI. The reporting form contains fields for insurers to respond to Part II: Claim level detail questions 1-10. Insurers must provide claim level data for each of the completed appraisals referenced in Part I, question 8 for residential property and personal auto. There are two sheets in the reporting form, one each for residential property and personal auto.

Once completed, attach the Claim level detail reporting form to the online form and click “submit.”

TDI may ask for more information about your responses.

Deadline

Insurers must provide this information no later than Friday, July 12, 2024. Before submitting their data, insurers must attach the Claim level detail reporting form for Part II Claim level detail (residential property and personal auto).

Data call questions

For questions about this data call, please contact Jocelyn Strong at 512-676-6710 or email AppraisalDataCall@tdi.texas.gov.

FAQs

What is meant by 'paid or payable' claims in questions A2 and R2?

‘Paid or payable’ refers to claims that were paid or have an outstanding reserve.

Does the data class include third-party claims? Does it include injury claims?

The data class (questions A1 and R1) should be limited to first-party property damage claims.  Please do not include injury claims, such as BI and PIP claims.

Does TDI want the claim data evaluated as of 12/31/2023, as of the end date of each 12-month period, or as of some other date?

Please provide current information.  The information should be current through at least April 12, 2024, which is the date this data call was issued.