Pursuant to Texas Insurance Code Articles 5.06-4, 5.15-2 and 5.15-3, any insurer desiring to write the above referenced lines of insurance in Texas must provide loss control information or services as a prerequisite for a license to write that insurance. Insurers shall provide loss control information to their policyholders reasonably commensurate with the risks and exposures and experience of the insured.
The Texas Department of Insurance (TDI) evaluates the adequacy of the loss control programs of insurers writing the referenced lines in insurance as required by Sections 5.303, 5.1713 and 5.1723, Title 28, Texas Administrative Code (TAC). TDI has completed multiple inspections and evaluations of the loss control programs of the majority of insurers writing those lines of coverage in Texas.
Recent audits by TDI indicate a number of companies with recurring major deficiencies in the implementation of their loss control programs in Texas, resulting in repeat evaluation ratings of "inadequate." "Inadequate" ratings of an insurance company´s Texas loss control program are unacceptable and can result in enforcement action by TDI, to impose sanctions available under Articles 1.10 §§7 and 1.10E of the Texas Insurance Code.
Questions regarding this bulletin should be directed to Richard Baker at 512-322-3435.
Alexis Dick
Deputy Commissioner
Inspections Division
Mail Code 103-1A