At its recent December 11th meeting in Corpus Christi, Texas, the Governing Committee of the Texas FAIR Plan Association (TFPA) is reported to have approved an assessment for its insurance company members of over $64 million in relation to a currently estimated $90 million gross loss for the TFPA from
Read More Insurers Brace for a Texas-sized Assessment for FAIR Plan Members
Texas Department of Insurance Cautions Insurers Against Unauthorized Market Withdrawals following Hurricane Harvey
On September 15, 2017, the Texas Department of Insurance issued a public bulletin concerning possible insurance company reductions in business following Hurricane Harvey. In Commissioner’s Bulletin #B-0031-17, the Department reminded insurers of the specific Texas statutory thresholds for a reduction in business necessitating a formal withdrawal plan filing with
Read More Texas Department of Insurance Cautions Insurers Against Unauthorized Market Withdrawals following Hurricane Harvey
Kent Sullivan Named New Texas Insurance Commissioner
On September 21, 2017, Texas Governor Greg Abbott announced that Kent Sullivan will be the next Texas Insurance Commissioner. Sullivan previously served as First Assistant Attorney General when Abbott served as Texas Attorney General. Sullivan currently practices as an appellate attorney in a Texas law firm. He also previously served
Read More Kent Sullivan Named New Texas Insurance Commissioner
Uncertainty Surrounds New Texas Insurance Law: Divergent Views Emerge on the Impact of the Texas “Hail Storm Bill” on Hurricane Harvey Claims
As we reported here in May, the Texas Legislature recently passed legislation (House Bill 1774, a copy of which can be found here) which amends Chapter 542 of the Texas Insurance Code—Texas’s general prompt pay statute for insurance claims. Most of the new law’s provisions are aimed at addressing
Read More Uncertainty Surrounds New Texas Insurance Law: Divergent Views Emerge on the Impact of the Texas “Hail Storm Bill” on Hurricane Harvey Claims
Texas Eliminates Enterprise Risk Report Small Insurer Exemption
With the adoption of new legislation supported by the Texas Department of Insurance, Texas has formally eliminated its $300 million minimum premium volume exemption from otherwise required Enterprise Risk Report filings for Texas licensed insurers. Texas now joins other states in requiring the solvency and enterprise risk evaluation filings for
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Texas Legislature Passes Domestic Surplus Lines Insurance Company Legislation
The Texas Legislature has passed legislation authorizing domestic surplus lines insurance companies in Texas, which may lead to an influx of new insurance company applications for licensure and redomestication to Texas applications as insurer groups seek to take advantage of the increasingly liberalized Texas rules governing its surplus lines market.
Read More Texas Legislature Passes Domestic Surplus Lines Insurance Company Legislation
Texas Legislature Amends Prompt Pay Statute for Insurance Claims
The Texas Legislature has passed new legislation that amends key provisions of Texas’s Prompt Pay Statute for insurance claims. Most types of insurance companies writing policies in Texas are required to comply with Texas’s Prompt Pay Statute in Chapter 542 of the Texas Insurance Code, and those that do not
Read More Texas Legislature Amends Prompt Pay Statute for Insurance Claims
Texas Considers Domestic Surplus Lines Insurance Company Legislation
The Texas Legislature is currently considering the authorization of domestic surplus lines insurance companies in Texas. If approved, Texas would join at least 10 other states with similar domestic surplus lines insurance company laws. The proposed legislation is currently working through the Texas House and Senate and appears to be
Read More Texas Considers Domestic Surplus Lines Insurance Company Legislation
InsureTerms™/Terminology for the Consummate Insurance & Reinsurance Lawyer: “Quota Share Reinsurance”
“Quota Share Reinsurance”
A form of reinsurance whereby the reinsurer accepts a stated percentage of each and every risk underwritten by the reinsured company within a defined category of business and within the underlying insurance contract parameters on a pro rata basis and is usually paid a pro rata portion
InsureTerms™/Terminology for the Consummate Insurance & Reinsurance Lawyer: “Audit Premium”
“Audit Premium”
Any premium that is determined to be payable from (Audit Additional Premium) or to (Audit Return Premium) a policyholder as a result of a policy provision that permits the insurance company to base the ultimate premium to be charged for the policy on auditable criteria at the end