| (a) A notice of material change is not a notice of
cancellation or nonrenewal. Instead, it is a notice provided under:
(1) Insurance Code §551.1055;
(2) Insurance Code §2002.001; or
(3) Insurance Code §2002.102.
(b) This section, §5.9751 and §5.9752 of
this title (relating to Notice of Material Change-Requirements and
Notice of Material Change-Change from Replacement Cost to Actual Cash
Value) apply to policies and insurers that are subject to Insurance
Code Chapter 551, Subchapter C; and Chapter 2002.
(c) Examples of material changes include:
(1) changes from replacement cost to actual cash value;
(2) reductions in policy limits;
(3) increases in deductibles; or
(4) reductions in coverage, including:
(A) limiting the people or entities insured under the
policy;
(B) removing an item or act that was previously covered
under the policy; or
(C) limiting the types of coverage under the policy.
|
