Agent no longer appointed with insurer
An agent no longer has permission to sell or service a company's products, so they cannot issue a policy for that specific company.
Assumption reinsurance (TWIA Only)
A Texas Windstorm Insurance Association (TWIA) policy is transferred to a private company.
At insured's request
This reason is used if the policyholder's representative cancels the policy because the policyholder died; the policyholder no longer has an insurable interest in the property (for example, they sold it); or for any other reason, as long as it was at the policyholder's request.
Claims history
The reason is because the company looked at the policyholder's past insurance claims and decided they are too high risk to insure. The company looks at how many claims were filed and how much money those claims cost in the past few years.
Condition of property
The reason is related to the condition of the property (for example, insufficient defensible space; maintenance, occupancy, or vacancy issues; roof condition; or tree overhang). A company can select all related reasons that apply. If a company declined or didn't renew a policy because it doesn't cover certain types of roofs, the reason should be coded as "Other, Insurer's Action" instead.
Credit or insurance score
The policy was nonrenewed or declined because of the policyholder's or applicant's credit score. Insurance companies can't deny, cancel, or nonrenew a home insurance policy based only on credit information without considering other underwriting factors. If credit or insurance score is a reason, there must also be another reason listed.
Source of law: Insurance Code 559.052(a)(2).
Exposure to loss
- Insurer's concentration of risk
An insurance company isn't selling new policies or renewing policies because of the company's excessive exposure in a particular area or subline of insurance. This reason does not include wildfire or wind/hail/hurricane exposure, which are listed separately.
- Liability
The reason is because of the policyholder's or applicant's personal liability risk, or the characteristics or activities of the policyholder or applicants. A company should not use this reason to reflect first-party claims history.
- Wildfire
The reason is because of the policyholder's or applicant's exposure to wildfire risk.
- Wind/hail/hurricane
The reason is because of the policyholder's or applicant's exposure to wind, hail, or hurricane risk.
Failure to pay premiums when due
The policy was canceled or not renewed because the policyholder did not pay the premium on time.
Source of law: Insurance Code 551.104(b)(1).
Increase in hazard
A company canceled a policy because of an increase in hazard that was within the control of the policyholder and would have caused a premium increase ; or because the policy had been in effect less than 60 days and the insurance company found a condition that increases the risk of hazard, wasn't disclosed on the application, and isn't the subject of a prior claim .
Source of law: Insurance Code 551.104(c) and Insurance Code 551.104(g)(1).
Inspection report not accepted
Before the effective date of the policy, the insurance company does not accept a copy of a required inspection report that was completed by an inspector and is dated within 90 days of the effective date of the policy.
Source of law: Insurance Code 551.104(g)(2).
Insurer withdrawing from the market
An insurance company filed a withdrawal plan with TDI that has been approved. No other reason codes can be used in conjunction with this reason.
Location of risk
An insurance company doesn't sell policies in certain areas. A company should use this reason if none of the "exposure to loss" reasons apply.
Other, insurer's action
This reason is used if the policyholder submitted a fraudulent claim; if TDI determined that continuing the policy would violate the law; if the policyholder didn't pay membership dues required by the insurance company; or for any other reason not otherwise listed.
Source of law: Insurance Code 551.104(b)(2) and Insurance Code 551.104(b)(3).
Value of home
The property exceeds the limit set in the insurance company's underwriting guidelines.
