Senate Bill (SB) 14 - frequently asked questions

Credit information resource page

The information contained in this document does not cover each portion of Senate Bill (SB 14), and therefore may not address a particular circumstance applicable to the reader. Additionally, this information is presented in a generalized language adapted from the bill text; please consult the bill text as needed for specific language; this can be found at the Texas Legislative website capitol.texas.gov.

The references to draft rules and deadlines are preliminary and subject to formal rulemaking processes. With some exceptions, TDI anticipates having rules available for comment in August.

As it becomes available, the Department will supplement this document with additional questions and answers and updated information regarding rule proposals.

Residential property | Personal automobile | Commercial automobile | Certain commercial and personal lines | Credit scoring | Territorial restrictions | Underwriting guidelines

What is "residential property insurance"?

Notice requirements

Q. Is it necessary to send two notices to comply with both notice requirements under Article 1 and 2?

Q. Can an insurer send a notice to all policyholders, including those policyholders who did not receive a rate increase of 10% or more, explaining the rate increase?

Q. Will the renewal statement suffice as the required notice?

Rates - initial rate filing (SB 14 - Article 4)

Q. How much time does TDI have to approve or modify the rates filed with the initial rate filings?

Rates - filings after initial rate filing (SB 14 - Article 1)

Q. What is the regulatory system for residential property rate filings before December 1, 2004?

Q. When can insurers make a rate filing under this provision of the statute?

Q. When can the Commissioner be expected to adopt rules regarding filing requirements and the small and new insurer exemption?

Q. What is required to be filed under the provisions of the statute?

Q. Can a Lloyds insurer which currently offers tiered rates still offer tiers under the new law?

Q. What is the regulatory system for residential property rate filings starting December 1, 2004?

Conforming amendments: repealer (SB 14 - Article 21) - Discounts

Q. Now that various mandatory discounts have been repealed, are insurers authorized to use the discounts? Is any action required to use them?

Policy forms & endorsements (SB 14 - Article 2)

Q. Can an insurer continue to use the policy forms and endorsements promulgated, approved, or adopted by the Commissioner under Article 5.35? Is there a deadline for notification?

Q. Where does an insurer send form notification?

Q. How soon can an insurer file new policy forms and endorsements?

Q. Are county mutual insurers required to immediately file policy forms?

Q. Where does a county mutual insurer send form notification?

Cancellation of certain insurance policies (SB 14 - Article 16)

Q. Is an insurer required to amend the cancellation provisions of its policies to comply with the new 60 day cancellation to provisions for homeowners policies?

Q. Is an insurer required to file the amended cancellation provisions with the Department?

Personal automobile

Q. What is "personal automobile insurance"?

Rates (SB 14 - Articles 1 and 6)

Q. What is the regulatory system for personal automobile rate filings before December 1, 2004?

Q. Will TDI continue to allow county mutuals to have multiple rating plans after December 1, 2004?

Q. Is an insurer required to make a rate filing?

Q. When can an insurer make a rate filing?

Q. When will the Commissioner adopt new benchmark rates?

Q. What is required to be filed?

Q. If an insurer elects to continue using the policy forms and endorsements promulgated, approved, or adopted by the Commissioner under Article 5.06, what rules and rates apply?

Q. What is the regulatory system for personal automobile rate filings starting December 1, 2004?

Q. What is the regulatory system for county mutual insurers for personal automobile rate filings before December 1, 2004?

Conforming amendments; repealer (SB 14 - Article 21) - Discounts

Q. Now that various discounts have been repealed, are insurers authorized to use the discounts? Is any action required to use them?

Policy forms & endorsements (SB 14 - Article 2)

Q. Can an insurer continue to use the policy forms and endorsements promulgated, approved, or adopted by the Commissioner under Article 5.06? Is there a deadline for notification?

Q. Where does an insurer send form notification?

Q. How soon can an insurer file new policy forms and endorsements?

Q. Are personal automobile insurance policy forms and endorsements filed for approval required to meet the minimum coverage standards as required by Article 5.06 prior to the effective date of SB 14?

Q. Are county mutual insurers required to immediately file policy forms?

Q. Where does a county mutual insurer send form notification?

Commercial automobile

Rates (SB 14 - Article 5)

Q. What is the regulatory system for commercial automobile rate filings?

Q. Is an insurer required to make a rate filing?

Q. What information is an insurer required to provide in a commercial automobile rate filing?

Q. If an insurer elects to continue using the policy forms and endorsements promulgated, approved, or adopted by the Commissioner under Article 5.06, what rules apply?

Q. Can an insurer currently using benchmark rates continue to use the benchmark rates under 5.13-2?

Q. What is the regulatory system for county mutual insurers for commercial automobile rate filings?

Policy forms & endorsements (SB 14 - Article 2)

Q. Can an insurer continue to use the policy forms and endorsement promulgated, approved, or adopted by the Commissioner under Article 5.06? Is there a deadline for notification?

Q. Where does an insurer send form notification?

Q. Are commercial automobile insurance policy forms and endorsements filed for approval required to meet the minimum coverage standards as required by Article 5.06 prior to the effective date of SB 14?

Q. Are county mutual insurers required to immediately file policy forms?

Q. Where does a county mutual insurer send form notification?

Certain commercial and personal lines of insurance (SB 14 - Article 5)

Q. When will the Department propose rules governing the manner in which forms and rates for the various classifications of risks insured under inland marine insurance are regulated?

Credit scoring (SB 14 - Article 3)

Q. When is the deadline for insurers to file credit scoring models?

Q. Where does an insurer file credit scoring models?

Q. Does an insurer need TDI's approval before using its credit scoring model?

Q. Are credit scoring models filed with TDI open to the public?

Q. How much time do insurers have before they need to comply with the statutory requirements regarding the use of credit information as set forth by SB 14?

Q. To what extent can insurers use credit scores to determine the rates policyholders are charged?

Q. Which insurance policies are subject to the credit scoring requirements of SB 14?

Territorial restrictions (SB 14 - Article 1, Subchapter U)

Q. Can an insurer use its own territorial definitions?

Q. Does TDI plan to adopt rules to allow companies to go beyond the 15% limitation established by SB 14?

Q. How much time do insurers have before they need to comply with the territorial restrictions set forth by SB 14?

Underwriting guidelines (SB 14 - Article 8)

Underwriting guidelines for personal automobile and residential property insurance

Q. When is an insurer required to file underwriting guidelines?

Q. Where does an insurer file underwriting guidelines?

Q. Are underwriting guidelines for personal automobile and residential property confidential?

Q. What are insurers required to file?

SB 14 - Frequently asked questions

Residential property

Notice requirements

Rates - initial rate filing (SB 14 - Article 4)

Rates - filings after initial rate filing (SB 14 - Article 1)

Filings Made Easy.

Conforming amendments: repealer (SB 14 - Article 21) - Discounts

Policy forms & endorsements (SB 14 - Article 2)

Cancellation of certain insurance policies (SB 14 - Article 16)

Personal automobile

Rates (SB 14 - Article 1 and 6)

Filings Made Easy for filing requirements.

Conforming amendments: repealer (SB 14 - Article 21) - Discounts

Policy forms & endorsements (SB 14 - Article 2)

Commercial automobile

Rates (SB 14 - Article 5)

Filings Made Easy for filings made in accordance with Article 5-13-2.

Policy forms & endorsements (SB 14 - Article 2)

Certain commercial and personal lines of insurance (SB 14 - Article 5)

Credit scoring (SB 14 - Article 3)

Territorial restrictions (SB 14 - Article 1, Subchapter U)

Underwriting guidelines (SB 14 - Article 8)

Underwriting guidelines for personal automobile and residential property insurance