| (a) This section applies to an insurer that, during
an applicable calendar year, wrote any or all of the following types
of insurance: commercial fire; commercial allied lines; farm and ranch
owners; residential property insurance; commercial multiple peril
(nonliability portion); private passenger automobile no fault (personal
injury protection (PIP)); other private passenger automobile liability;
private passenger automobile physical damage; commercial automobile
no fault (PIP); other commercial automobile liability; or commercial
automobile physical damage.
(b) On a written request from the department, an insurer
must provide the department with a premium surcharge reconciliation
report for the year specified by the department in its request.
(c) Reconciliation reports must be provided to the
department within 15 working days after the date the request is received
by the insurer.
(d) Reconciliation reports must consist of information
concerning premiums written and surcharges collected, separately for
each applicable surcharge period, including periods in which no premium
surcharges were in effect, within the specified year for:
(1) premium written at policy issuance for policies
effective within the year, including anniversary dates within the
year on multiyear policies, separately for:
(A) premium on policies subject to a premium surcharge,
including premium attributable to insured property located both in
and outside of the catastrophe area; and
(B) premium on policies not subject to a premium surcharge,
including premium attributable to insured property located both in
and outside of the catastrophe area;
(2) premium written due to midterm coverage changes
occurring within the specified time period separately for:
(A) premium increases on policies subject to a premium
surcharge, including premium attributable to insured property located
both in and outside of the catastrophe area;
(B) premium decreases on policies subject to a refund
or credit of the premium surcharge, including premium attributable
to insured property located both in and outside the catastrophe area;
and
(C) premium on policies not subject to a premium surcharge,
including premium increases and decreases attributable to insured
property located both in and outside of the catastrophe area;
(3) unearned premiums returned due to midterm cancellations
occurring within the specified time period separately for:
(A) return premium on policies subject to a premium
surcharge, including return premium attributable to insured property
located both in and outside the catastrophe area; and
(B) return premium on policies not subject to a premium
surcharge, including return premiums attributable to insured property
located both in and outside the catastrophe area;
(4) total premium due to post term premium changes
occurring within the specified time period, including adjustments
caused by premium or exposure audits, retrospective rating adjustments,
or other similar adjustments that occur after policy expiration, separately
for:
(A) premium on policies subject to a premium surcharge,
including premium attributable to insured property located both in
and outside of the catastrophe area; and
(B) premium on policies not subject to a premium surcharge,
including premium attributable to insured property located both in
and outside of the catastrophe area;
(5) separately for paragraphs (1)(A), (2)(A), and (4)(A)
of this subsection, the amounts of premium surcharges collected;
(6) separately for paragraphs (2)(B), (3)(A), and (4)(A)
of this subsection, the amounts of premium surcharges refunded or
credited to the policyholder;
(7) the total amount of premium surcharges claimed
as offsets by the insurer under §5.4187 of this division (relating
to Offsets); and
(8) the total amount of written premium for policies
written in the State of Texas as reported in the Annual Statement,
Exhibit of Premiums and Losses (Statutory Page 14), Texas.
(e) Nothing in this section limits the department's
authority to obtain information from insurers under the Insurance
Code.
(f) A report provided to the department under this
section may be provided to the association.
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