• Increase Text Icon
  • Decrease Text Icon
  • Email Icon
  • Printer Icon
You are here: 

Archived File - for Reference Use

This file is historical in nature. Links and contact information may be outdated and no longer valid.


COMMISSIONER'S BULLETIN #B-0024-98

March 18, 1998

 

TO: ALL PROPERTY AND CASUALTY COMPANIES

RE: Commissioner┬┤s Order No. 98-0069; Docket No. 2309, Adoption to provide mandatory credits for installation of roof coverings, other than metal roof coverings which meets the UL Standard 2218 effective 2/17/98

The Commissioner of Insurance, under Commissioner´s Order No. 98-0069, has adopted rating rules in the Homeowners Section and Dwelling Section of the Texas Personal Lines Manual (Manual) to provide mandatory credits for roof coverings, other than metal roof coverings, on residential risks which meet the Underwriters Laboratories (U.L.) test criteria under U.L. Standard 2218. U.L. Standard 2218 establishes a classification system for measuring the impact resistance of roof coverings. The Commissioner also adopted a form entitled "Roofing Installation Information and Certification for Reduction in Residential Insurance Premiums" (Certificate of Installation) which must be completed by the installer of a roof covering product on a residential risk which meets the test criteria under U.L. Standard 2218.

This is a mandatory credit and applies to all licensed companies. Policyholders having a Certificate of Installation must be provided a premium credit.

The adopted new rules to sections of the Manual are as follows:

  1. In the Homeowners Section, Manual Rule VI-N, entitled "Mandatory Roof Covering Credits" is added.

  2. In the Dwelling Section, Manual Rule VI-K, entitled "Mandatory Roof Covering Credits" is added.

The roof covering credit, applicable class (1, 2, 3 or 4) of roof covering, and premium credit applied must be shown on the declarations page of the policy as: Mandatory Roof Covering Credit - Class ______.

The above rules became effective February 17, 1998. Any questions regarding this notice should be directed to the Residential Property Section, (512) 322-2266.

Attached to this bulletin is a copy of the rules and Certificate of Installation.

David P. Durden
Deputy Commissioner
Automobile and Homeowners Group

DD:GJ:er

Attachment


Homeowners Manual

VI. Rating Rules

N. Mandatory Roof Covering Credits

  1. Residential roof coverings other than metal roof coverings meeting the impact resistance of the Underwriters’ Laboratories testing criteria of U. L. Standard 2218 are eligible for the following mandatory credits to be applied to the basic homeowners premium:
Territory Class 1
Credit
Class 2
Credit
Class 3
Credit
Class 4
Credit
9 1% 2% 3% 4%
1, 8, 10,11 2 4 5 7
7 4 8 12 15
5, 6, 13, 14, 17 4 9 13 17
2, 4 6 12 17 23
12, 16C, 19C, 19N 7 14 21 28
3 9 17 26 34
15C, 15N, 16N, 18, 20 9 17 26 35

The roof covering credit and applicable premium credit applied must be shown on the declarations page of the policy. The above credits reduce the basic premium and are applied before any other adjustments to the basic premium.

Credits apply only on policies insuring a risk that replacement of the existing roof covering on a residence is with a new roof covering(s) meeting U.L. Standard 2218 or is new residential construction which includes the installation of a roof covering meeting U.L. Standard 2218.

The credits outlined in the table in item N-1 will be reviewed at such time as credible statistical data becomes available but not later than 5 years from the effective date of the implementation of the credits. The credits may be modified if the statistical data indicates modifications are needed.

Note: Other impact or hail resistance testing standards approved by the Texas Department of Insurance may be substituted for the U.L. Standard 2218. Testing to U.L. Standard 2218 or other acceptable standards may be accomplished by a testing facility recognized and approved by the Texas Department of Insurance based on standards for testing laboratories adopted by the Department.

  1. The mandatory roof covering credits do not apply to metal roof coverings.
  2. A certificate of installation, promulgated by the Texas Department of Insurance, must be provided to the policyholder by the installer of the roof covering. All information on the certificate must be completed and signed by the individual responsible for the installation of the roof covering.
  3. A policyholder may present the certificate of installation to an insurer for the application of the mandatory credit as provided in item N-1. Presentation of a certificate of installation does not preclude an insurer from inspecting the risk for verification of roof covering installation.
  4. Product Labeling. In order for mandatory roof covering credits to be applicable to homeowners insurance, roof coverings meeting U.L. Standard 2218 or any other test standard for impact resistance approved by TDI which are installed on and after January 1, 1999 must meet the following labeling requirements. All individual shingles, tiles, shakes, panels, sheets, etc., of roof coverings must bear the Underwriters’ Laboratories label or the label of a testing laboratory approved by TDI indicating the classification of the product under U.L. Standard 2218 and the manufacturer´s name, the year manufactured and the brand name. For roof coverings meeting U. L. Standard 2218 which are installed prior to January 1, 1999, only the package containing the roof covering products is required to be labeled. The package must bear the Underwriters’ Laboratories label or the label of a testing laboratory approved by TDI indicating the classification of the product under U.L. Standard 2218 and the manufacturer´s name, the year manufactured and the brand name.
  5. It shall be optional with insurers to provide credits for impact resistant roof coverings installed prior to February 1, 1998. The optional credits given for impact resistant roof coverings installed prior to February 1, 1998 shall be within the range of credits outlined in the table in item N-1. Insurers may request from insureds, who apply for this optional credit, information regarding the installation of the impact resistant roof covering including but not limited to the date of installation, verification of the installation, and type of impact resistant roofing material installed. Any roof covering that is replaced on or after February 1, 1998 shall meet U. L. Standard 2218 in order for the property owner to receive the credit.
  6. The credits program with its certification process is solely for the purpose of enabling residential property owners to obtain a reduction in their residential insurance premium and it is not intended by the Department to require or create any type of express or implied warranty by the manufacturer, supplier, or installer.

Dwelling Manual

VI. Rating Rules

K. Mandatory Roof Covering Credits

  1. Residential roof coverings other than metal roof coverings meeting the impact resistance of the Underwriters’ Laboratories testing criteria of U. L. Standard 2218 are eligible for the following mandatory credits to be applied to the dwelling extended coverage premium:
Territory Class 1 Credit Class 2 Credit Class 3 Credit Class 4 Credit
9 3% 5% 8% 11%
1, 8, 10,11 4 5 9 13
5, 6, 13 10 15 25 36
2, 4, 14 11 16 27 38
7, 12, 15C 12 18 30 42
3, 15N, 16C, 16N, 17, 18, 19C, 19N, 20 13 20 33 46

The roof covering credit and applicable premium credit applied must be shown on the declarations page of the policy. The above credits reduce the extended coverage premium and are applied before any other adjustments to the extended coverage premium.

Credits apply only on policies insuring a risk that replacement of the existing roof covering on a residence is with a new roof covering(s) meeting U.L. Standard 2218 or is new residential construction which includes the installation of a roof covering meeting U.L. Standard 2218.

The credits outlined in the table in item K-1 will be reviewed at such time as credible statistical data becomes available but not later than 5 years from the effective date of the implementation of the credits. The credits may be modified if the statistical data indicates modifications are needed.

Note: Other impact or hail resistance testing standards approved by the Texas Department of Insurance may be substituted for the U.L. Standard 2218. Testing to U.L. Standard 2218 or other acceptable standards may be accomplished by a testing facility recognized and approved by the Texas Department of Insurance based on standards for testing laboratories adopted by the Department.

  1. The mandatory roof covering credits do not apply to metal roof coverings.
  2. A certificate of installation, promulgated by the Texas Department of Insurance, must be provided to the policyholder by the installer of the roof covering. All information on the certificate must be completed and signed by the individual responsible for the installation of the roof covering.
  3. A policyholder may present the certificate of installation to an insurer for the application of the mandatory credit as provided in item K-1. Presentation of a certificate of installation does not preclude an insurer from inspecting the risk for verification of roof covering installation.
  4. Product Labeling. In order for mandatory roof covering credits to be applicable for dwelling insurance, roof coverings meeting U.L. Standard 2218 or any other test standard for impact resistance approved by TDI which are installed on and after January 1, 1999 must meet the following labeling requirements. All individual shingles, tiles, shakes, panels, sheets, etc., of roof coverings must bear the Underwriters’ Laboratories label or the label of a testing laboratory approved by TDI indicating the classification of the product under U.L. Standard 2218 and the manufacturer´s name, the year manufactured and the brand name. For roof coverings meeting U. L. Standard 2218 which are installed prior to January 1, 1999, only the package containing the roof covering products is required to be labeled. The package must bear the Underwriters’ Laboratories label or the label of a testing laboratory approved by TDI indicating the classification of the product under U.L. Standard 2218 and the manufacturer´s name, the year manufactured and the brand name.
  5. It shall be optional with insurers to provide credits for impact resistant roof coverings installed prior to February 1, 1998. The optional credits given for impact resistant roof coverings installed prior to February 1, 1998 shall be within the range of credits outlined in the table in item K-1. Insurers may request from insureds, who apply for this optional credit, information regarding the installation of the impact resistant roof covering including but not limited to the date of installation, verification of the installation, and type of impact resistant roofing material installed. Any roof covering that is replaced on or after February 1, 1998 shall meet U. L. Standard 2218 in order for the property owner to receive the credit.
  6. The credits program with its certification process is solely for the purpose of enabling residential property owners to obtain a reduction in their residential insurance premium and it is not intended by the Department to require or create any type of express or implied warranty by the manufacturer, supplier, or installer.

View the Hail Resistant Roof Certification

Return to top

For more information contact:




Archived File - for Reference Use

This file is historical in nature. Links and contact information may be outdated and no longer valid.


Contact Information and Other Helpful Links

Translation by WorldLingo


Translation by WorldLingo