(a) The association may be required to assess a premium
surcharge under Insurance Code §§2210.612, 2210.613, or
2210.6131 on all policyholders of policies that cover association-insured
property.
(b) Following a catastrophic event, insurers may be
required to assess a premium surcharge under Insurance Code §2210.6132
on all policyholders of policies that cover insured property that
is located in a catastrophe area, including automobiles principally
garaged in the catastrophe area. This requirement applies to property
and casualty insurers, the association, the Texas FAIR Plan Association,
Texas Automobile Insurance Plan Association policies, affiliated surplus
lines insurers, and includes property and casualty policies independently
procured from affiliated insurers.
(c) For premium surcharges described in subsection
(a) of this section, this section and §§5.4172, 5.4173,
5.4181, 5.4182, and 5.4184 - 5.4192 of this title (relating to Premium
Surcharge Definitions, Determination of the Contingent Surcharge Percentage,
Premiums to be Surcharged, Method for Determining the Premium Surcharge,
Application of Premium Surcharges, Mandatory Premium Surcharge Collection,
Remittance of Contingent Surcharges, Offsets, Association Surcharges
Not Subject to Commissions or Premium Taxes; Contingent Surcharges
not Subject to Commissions, Notification Requirements, Annual Premium
Surcharge Report, Premium Surcharge Reconciliation Report, and Data
Collection, respectively) apply to all policies written by the association.
(d) Contingent surcharges described in subsection (b)
of this section and §§5.4172, 5.4173, 5.4181, 5.4182, and
5.4184 - 5.4192 of this title only apply to policies written for 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, and commercial automobile physical damage.
(e) This section and §§5.4172, 5.4173, 5.4181,
5.4182, and 5.4184 - 5.4192 of this title do not apply to:
(1) a farm mutual insurance company operating under
Insurance Code Chapter 911, unless the company is acting as a fronting
insurer, as defined by Insurance Code §221.001(c);
(2) a nonaffiliated county mutual fire insurance company
described by Insurance Code §912.310 that is writing exclusively
industrial fire insurance policies as described by Insurance Code §912.310(a)(2);
(3) a mutual insurance company or a statewide mutual
assessment company engaged in business under Chapter 12 or 13, Title
78, Revised Statutes, respectively, before those chapters' repeal
by §18, Chapter 40, Acts of the 41st Legislature, First Called
Session (1929), as amended by Section 1, Chapter 60, General Laws,
Acts of the 41st Legislature, Second Called Session (1929), that retains
the rights and privileges under the repealed law to the extent provided
by those sections; and
(4) premium and policies issued by an affiliated surplus
lines insurer that a federal agency or court of competent jurisdiction
determines to be exempt from a premium surcharge under Insurance Code
Chapter 2210.
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Source Note: The provisions of this §5.4171 adopted to be effective February 16, 2011, 36 TexReg 784; amended to be effective June 12, 2014, 39 TexReg 4463; amended to be effective March 9, 2016, 41 TexReg 1697; amended to be effective January 6, 2021, 46 TexReg 162 |