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Texas Department of Insurance
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Review Requirements Checklist – Crime

Updated 11/16/2021 - Return to Index

Refer to Property & Casualty Filings Made Easy for required documentation.

Forms

Filing Standards
Review requirements Reference Comments
Policy Forms and Endorsements §2301.001(2), Insurance Code Policy forms and endorsements may not be unjust, unfair, inequitable, misleading or deceptive.
Prior Approval  Chapter 2301, Insurance Code An insurance policy form or endorsement may not be delivered or issued for delivery in this state unless the form has been filed with and approved by the commissioner. Each filing shall be made not later than the 60th day before the date of any use or delivery for use.
Large Risk Exemption §2301.004, Insurance Code Policy forms for use with large risks are exempt from filing for prior approval if the forms are to be used with a "large risk". "Large Risk" is defined as an insured that has total insured property values of $5 million or more; an insured that has total annual gross revenues of $10 million or more; or an insured that has a total premium of $25,000 or more for property insurance, $25,000 or more for general liability insurance, or $50,000 or more for multiperil insurance.
Disapproval of Forms; Withdrawal of Approval §2301.007, Insurance Code The commissioner may disapprove a form filed under §2301.006 or withdraw approval of a form if the form (1) violates any law, including a rule adopted under the Texas Insurance Code, or (2) contains a provision or has a title or heading that is unjust or deceptive, encourages misrepresentation, or violates public policy.
Applications   Not Required to be Filed For Approval Unless Being Made a Part of the Policy
Arbitration
Review requirements Reference Comments
Arbitration Chapter 2301, Insurance Code Language used in arbitration agreements is to be consistent with that of the policy: to wit, don't use the word "parties" when you actually mean insured(s) and insurer. Binding arbitration is okay. Arbitration agreements may be mandatory. Arbitration must be held in Texas for Texas policyholders unless mutually agree on an alternate. In general, arbitration language cannot be unjust, misleading or deceptive.
Cancellation & Nonrenewal
Review requirements Reference Comments
Elected Officials §§551.151 & 551.152, Insurance Code An insurer may not cancel or refuse to renew an insurance policy based solely on the fact that the policyholder is an elected official.
Cancellation & Nonrenewal of Certain Property and Casualty Policies §§551.101 - 551.112, Insurance Code Cancellation requirements if the policy is issued to a "Governmental Unit" or one and two family dwellings. Governmental unit as defined includes the state, and agency of the state, a political subdivision of the state, including a municipality, county, school district, junior college district, levee improvement district, drainage district, irrigation district, water improvement district, water control and improvement district, water control and preservation district, freshwater supply district, navigation district, conservation and reclamation districts, soil conservation district, communication district, and river authority and any other agency of government whose authority is derived from the laws or constitution of the state.
Insured's Right to Cancel Chapter 2301, Insurance Code Insurance company cannot limit or restrict the insured's right to cancel a policy.
Voiding Coverage Chapter 705, Insurance Code "Void Coverage" language must comply with Chapter 705, Subchapter A, and the misrepresentation must be material.
Choice of Law
Review requirements Reference Comments
Texas Laws Govern Policies Article 21.42, Insurance Code Texas must be choice if filing contains choice of law provision.
Claims Settlement
Review requirements Reference Comments
Prompt Payment of Claims §§542.051 - 542.061, Insurance Code Prompt payment of claims.
Loss Settlements §§542.151 - 542.154, Insurance Code Notice of Settlement of Liability Claims - Applicable to Crime forms that include Third Party Liability.
Contractual Limitations Period - Suits §16.070, Civil Practice & Remedies Except as provided by Subsection (b), a person may not enter a stipulation, contract, or agreement that purports to limit the time in which to bring suit on the stipulation, contract, or agreement to a period shorter than two years. A stipulation, contract, or agreement that establishes a limitations period that is shorter than two years is void in this state. The Texas Third Court of Appeals issued an opinion that acknowledges that the language providing 2 years and 1 day from the date the cause of action first accrues satisfies the statutory requirement of §16.070, Civil Practices and Remedy Code. ( http://www.search.txcourts.gov/Case.aspx?cn=03-08-00408-CV) Case #03-08-00408-CV
Notice Requirements §16.071, Civil Practice & Remedies A contract stipulation that requires a claimant to give notice of a claim for damages as a condition precedent to the right to sue on the contract is not valid unless the stipulation is reasonable. A stipulation that requires notification within less than 90 days is void.
Providing Certain Claims Information On Request §§542.101-542.104, Insurance Code; and Commissioner's Bulletin No. B-0043-05 If a policy form or endorsement contains language addressing the request or furnishing of claims information, it would need to comply with the applicable statute(s).
Coverage Issues
Review requirements Reference Comments
Aggregate Limits Chapter 2301, Insurance Code Rates should contemplate aggregate limits.
Claims Reported Within Policy Period Chapter 2301, Insurance Code If the form contains language requiring the claim be reported within the policy period or contains an extended period to report claims, a warning to insured's is required in bold print or uppercase type on the Declaration Page. (Example Wording: "Claim must be reported within the policy period." This language is common to Fidelity forms where we can anticipate more sophisticated insureds.)
Examination Under Oath

Chapter 2301, Insurance Code
§151.001(a)(7), Family Code

If policy language requires examination under oath, the provision must also state that a parent or guardian may be present during any examination of a minor.
Tie-In Sales Chapter 1806, Insurance Code & 6/1/78 Board Letter Tie-in sales may violate state law.
Definition of "Convicted"
Review requirements Reference Comments
Definition of "Convicted" Chapter 2301, Insurance Code Definition of "convicted" must be included.
Fully Earned Premium/Retention of Minimum Earned Premium
Review requirements Reference Comments
Fully Earned Premium / Retention of Minimum Earned Premium Chapter 2251 & Chapter 2301, Insurance Code and 28 TAC §5.9320, Texas Administrative Code TDI will consider approving fully earned premium only for risks with exposure during a period certain, such as special events and weather policies.

TDI will consider approving minimum earned premium only if it is a nominal amount.

The company must file appropriate rates associated with a minimum or fully earned premium.
General Change Endorsements
Review requirements Reference Comments
May Not Manuscript Coverage Once Approved Chapter 2301, Insurance Code Coverage forms are prior approval. Change endorsements may be used to change insured address, etc. but may not be used to change, alter or "clarify" coverage in any way. Company must provide verification that the endorsement will not be used to change, alter, or clarify coverage.
Rebating or Discrimination
Review requirements Reference Comments
Rebating or Discrimination Chapter 1806, Insurance Code Inducements prohibited.
Indicates new addition since last update.Political Affiliation and Expression Chapter 544, Subchapter M, Insurance Code Except as provided by Section 544.603, a person may not refuse to insure or provide coverage to an individual, refuse to continue to insure or provide coverage to an individual, limit the amount, extent, or kind of coverage available for an individual, or charge an individual a rate that is different from the rate charged to other individuals for the same coverage because of the individual's political affiliation or expression.
Toll Free Information
Review requirements Reference Comments
Notice of Policyholder Complaint Procedures §521.005, Insurance Code A brief written notice of suggested procedure to be followed by the policyholder in the event of a dispute concerning a policyholder's claim or premium.
Toll-Free Information & Complaint Number §§521.051 - 521.056, Insurance Code Toll-Free number for the Texas Department of Insurance.
Insurer's Toll-Free Information & Complaint Number §§521.101 - 521.103, Insurance Code Insurer's requirement to maintain toll-free number to provide information concerning policies issued by the insurer and to accept complaints from policyholder. Article contains an exception for insurers whose gross initial premium receipts collected in this state are less than $2 million a year or to an insurer with regard to fidelity, surety, or guaranty bonds.
Notice of Toll-Free Telephone Numbers and Information & Complaint Procedures 28 TAC §1.601 & §1.602, Texas Administrative Code and Commissioner's Order 3952 To satisfy requirements for §521.005, §§521.051 - 521.056, and §§521.101 - 521.103 noted above.

Rates

Filing Standards
Review requirements Reference Comments
File & Use Chapter 2251, Insurance Code Each insurer shall file with the Commissioner all rates, supplementary rating information, and reasonable and pertinent supporting information for risks written in this state.

Rules

Filing Standards
Review requirements Reference Comments
File & Use Chapter 2301 & Chapter 2251, Insurance Code Manual rules should reflect specific requirements for usage of policy forms, endorsements, and disclosures.

Fees

Filing Standards
Review requirements Reference Comments
Fees for Paper Checks Prohibited §116.002, Business and Commerce Code An insurer or agent may not charge a fee for issuing payment via a paper check.

For more information, contact: PropertyCasualty@tdi.texas.gov

Last updated: 1/28/2022