| (V) An offer to extend coverage for an open-end consumer
transaction addressed in this clause must include, at the time of
the invitation to contract, the following prominent written disclosure
in no smaller than 10-point boldface type: "This coverage might duplicate
existing coverage if you have a residential property insurance policy.
It applies to any item of covered property on which you owe a debt.
This coverage is primary, so it is the first source to be used in
the event of a loss on property it covers. You may cancel this coverage
at any time by calling the insurer at the toll-free telephone number
provided to you, or by writing to the insurer. This coverage costs
$(enter amount) per $100 of outstanding balance on your account. The
premium charged for this coverage is based on your entire outstanding
balance, but the coverage only applies to tangible personal property
purchased on an open-end credit account. Services, meals or other
consumables, entertainment, finance or service fees, loan interest,
delivery charges, or other insurance premiums, which may be part of
your outstanding balance, are not covered."
(VI) Policies or certificates extending the coverage
addressed in this clause must be provided to the insured at the time
coverage is accepted by the insurer, along with written instructions
on filing claims under the coverage. The instructions must include
the insurer's toll-free telephone number, as well as a list of essential
elements for inclusion by the insured to perfect a claim. All such
policies or certificates provided to insureds must include the disclosure
set out in subclause (IV) of this clause, or subclause (V) of this
clause, as applicable, subject to the same type face and size requirements.
(VII) Policies and certificates of insurance issued
to cover open-end consumer transactions must provide that the policyholder
or certificate holder will be furnished the following disclosure notice
on the face of the account statement or through a statement insert
not less than semi-annually in no smaller than 6-point boldface type
if on the face of that statement or in no smaller than 10-point boldface
type if on a statement insert: "If you are paying a credit property
insurance premium, that premium is based on the entire outstanding
balance of this account. You may cancel this coverage at any time
by calling the insurer at the toll-free telephone number it has provided
to you, or by writing to the insurer. Any premium charged for credit
property insurance coverage is based on your entire outstanding balance,
but the coverage only applies to tangible personal property purchased
on an open-end credit account. Services, meals or other consumables,
entertainment, finance or service fees, loan interest, delivery charges,
or other insurance premiums, which may be part of your outstanding
balance, are not covered."
(VIII) Policies and certificates of insurance offering
coverage for an open-end consumer transaction must provide that the
policyholder or certificate holder will be furnished a statement each
billing cycle, but not less frequently than quarterly, which indicates:
(-a-) the amount of the credit property insurance charge,
shown separately from any total insurance charge;
(-b-) the amount of the insured's indebtedness to which
the insurance charge rate was applied;
(-c-) the date the rate was applied; and
(-d-) the period covered by such monthly charge.
(ii) Coverage resulting from commercial credit transactions
involving installment sales, leased property, and deferred payment
contracts (non-regulated). For purposes of this subparagraph, a commercial
credit transaction is one which does not fall within the meaning of
an open- or closed-end or consumer credit transaction that is a retail
installment transaction under clause (i) of this subparagraph. The
credit property insurance coverage addressed in this clause covers
the interest of a vendor or mortgagee in property sold in a commercial
transaction under an installment sales contract, or a partial or deferred
payment contract, and the interest of a lessor in property leased.
Credit property insurance policies subject to this clause must include
coverage while in transit and may be extended to include the interest
of the vendee, mortgagor, or lessee, but in no event may the policy
cover beyond termination of the vendor's, mortgagee's, or lessor's
interest.
(R) Live animal floaters as follows:
(i) cattle kept for feeding, dairy, breeding, or show
purposes, sheep, swine, horses, and mules, except horses and mules
used exclusively for racing or show including breeding therefor (filed);
and
(ii) range cattle and range sheep while on ranges;
horses or mules used exclusively for racing or show, including breeding
therefor; livestock while being transported to or from or while at
stockyards; policies issued to assureds conducting sales or auction,
covering livestock of others for public sale; livestock insured under
mortality policies covering, among other perils, against death or
destruction due to natural causes; livestock of circus, carnival,
or theatrical enterprises; policies issued to veterinarians and humane
societies to cover livestock of others in their custody or control
for professional purposes (non-regulated).
(S) Mobile equipment and miscellaneous movable property
(non-regulated). For example, this includes contractors' equipment,
industrial and other special equipment not primarily designed for
highway use, mechanical sales devices, storage batteries, stevedores,
divers' equipment, undertakers' equipment, outboard boats and motors,
parachutes, balloons, scientific and surveyors' instruments, articles
for sport and recreation, musical scores and orchestrations, and all
other similar movable and identified property not on sale or consignment,
or in the course of manufacture, which has come into the custody and/or
control of parties who intend to use such property for the purpose
for which it was manufactured or created. Such policies may not include
coverage of storage risks at premises of the assured, except where
incidental to the regular use of the equipment or property away from
the premises.
(T) Musical instrument floaters (radios, televisions,
record players, and combinations thereof are not deemed musical instruments)
(filed).
(U) Nuclear insurance (non-regulated). Insurance against
loss resulting from physical damage (including risks in course of
construction) to:
(i) designated nuclear facilities, including property
associated therewith and subject to radiation damage therefrom;
(ii) other property directly related to such nuclear
facilities; and
(iii) other facilities involving substantial quantities
of radiation.
(V) Oil and gas lease property (filed).
(W) Pattern and die floaters, excluding coverage on
the owner's premises (non-regulated).
(X) Personal effects floaters (filed).
(Y) Personal fur floaters (filed).
(Z) Personal jewelry floaters (filed).
(AA) Personal property floaters (filed).
(BB) Physicians' and surgeons' equipment floaters (excluding
dealers) (filed).
(CC) Radium floaters (non-regulated).
(DD) Rolling stock covering locomotives and other rolling
stock used on a railway system. Coverage may be provided on an all
risk basis or named peril basis, subject to the inclusion of the perils
of fire, collision, derailment, overturn, strikes, and riots (non-regulated).
(EE) Salespersons' samples floaters (non-regulated).
(FF) Sign and street clock policies, covering neon
signs, automatic or mechanical signs, street clocks, while in use
as such (filed).
(GG) Silverware floaters (filed).
(HH) Stamp and coin floaters:
(i) private collection (filed); and
(ii) commercial risks (non-regulated).
(II) Self-service storage customer floater policies
(filed for policy forms and endorsements; non-regulated for rates)
may be issued to a tenant of a self-storage facility and covering
property stored at such facility. Coverage is limited to property
in storage for the perils set forth in the policies, which must include
coverage for property while in transit. Coverage may not be provided
for any motor vehicles subject to motor vehicle registration and inspection.
It is not intended that this coverage definition will allow coverage
of property stored in any facility where the lessor issues a warehouse
receipt, bill of lading, or other document of title relating to the
stored property, or in facilities other than storage facilities that
have multiple storage units. Accordingly, the terms "self-service
storage facility" and "tenant" have the meaning prescribed by Texas
Property Code, §59.001, i.e., "self-service storage facility"
means real property that is rented to be used exclusively for storage
of property and is cared for and controlled by the tenant. "Tenant"
means a person entitled under a rental agreement to the exclusive
use of storage space at a self-service storage facility.
Cont'd... |
