(a) An insurer that meets the criteria under Insurance
Code §827.008 must file a proposed restriction plan with the
Commissioner for review and approval.
(b) The plan must be signed by at least one officer
of the insurer and must contain the following:
(1) identification, in accordance with the line of
insurance designations in §7.1803 of this title (relating to
What Constitutes a Line of Insurance), as applicable to personal automobile
or residential property insurance being restricted;
(2) the dates the insurer intends to begin and complete
its restriction;
(3) an explanation of the reasons for restricting the
writing of new business;
(4) a list of the affected rating territories; and
(5) information on Texas business, including any information
necessary to assist the Commissioner in determining how market availability
of the line of business proposed to be restricted may be affected
including, but not limited to, the following:
(A) a description of how restricting writing new business
in a rating territory may affect other related residential property
or personal automobile insurance lines of business written by the
insurer, such as the potential effect of discounts no longer provided
to insureds;
(B) a list of any other products within the line the
insurer will continue to offer in Texas; and
(C) any other information related to the restriction
plan that the Commissioner deems necessary.
(c) The department will post forms and instructions
on its website to assist persons in compliance with the requirements
of this subchapter. Any insurer filing a restriction plan must submit
the plan at the location specified on the department website.
(d) The Commissioner may modify, restrict, or limit
a restriction plan as provided for under Insurance Code §827.008(b).
(e) An insurer may not revise its underwriting guidelines
in response to a catastrophic natural event that occurred within the
previous six months without receiving Commissioner approval of its
restriction plan under Insurance Code §827.008.
(f) If a restriction plan results in a withdrawal under
Insurance Code §827.003 and §827.004, the insurer must file
a withdrawal plan.
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