| (a) Prohibition. Effective September 1, 1995, an insurer
or agent may not use an underwriting guideline for private passenger
automobile insurance based, in whole or in part, on whether an insured
or applicant purchases types or amounts of coverage in excess of the
minimum automobile liability coverage required to show proof of financial
responsibility under the Motor Vehicle Safety Responsibility Act,
Transportation Code, Chapter 601. The failure to comply with this
section constitutes an unfair trade practice in the business of insurance
in violation of Insurance Code Chapter 541, and is subject to the
provisions thereof.
(b) Definition of "Underwriting Guideline." For the
purposes of this rule, an "underwriting guideline" is a rule, standard,
marketing decision, guideline, or practice, whether written, oral
or electronic, used by an insurer or its agent to examine, bind, accept,
reject, renew, non-renew, cancel or limit coverages made available
to classes of consumers.
(c) Definition of "Private Passenger Automobile Insurance."
For the purposes of this rule, "private passenger automobile insurance"
is the insurance for which a personal auto policy is issued.
|
| Source Note: The provisions of this §21.1005 adopted to be effective February 9, 1995, 20 TexReg 478; amended to be effective September 1, 1995, 20 TexReg 3719; amended to be effective November 7, 2021, 46 TexReg 7408 |
