On April 15, 2020, the Texas Department of Insurance (TDI) issued a bulletin encouraging insurers to conduct midterm premium audits of commercial policies where premiums may need to be adjusted as a result of reduced business operations due to the impact of the COVID-19 pandemic.
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Texas Department of Insurance Eliminates 2020 Corporate Governance Disclosure Requirement
In the midst of the Coronavirus outbreak, the Texas Department of Insurance (TDI) has announced that it will not require insurers or HMOs to file a corporate governance annual disclosure this year.
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Texas Governor Adopts Executive Order Exempting Insurance Industry Business Travel from Quarantine Restrictions
Texas Governor Gregg Abbott on March 31, 2020, issued Executive Order GA 14 renewing social distancing guidelines in Texas. Of particular significance to the insurance industry, the Governor’s Order adopted U.S. Department of Homeland Security guidance establishing insurance services as “essential services” and classifying members of the insurance industry as federally identified “essential critical infrastructure workers” under the broader heading of “Financial Services.”
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Texas Department of Insurance Posts Extension Schedule for Insurer Financial Filings
The Texas Department of Insurance has posted a bulletin announcing the extension of selected filing deadlines and a modification of filing requirements for reporting insurers.
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Locke Lord QuickStudy: Texas Supreme Court Answers Certified Question Regarding an Insurer’s Duty to Defend
In Richards v. State Farm Lloyds, — S.W.3d —, 2020 WL 1313782 (Tex. Mar. 20, 2020), the Texas Supreme Court answered a certified question from the Fifth Circuit Court of Appeals about the scope of an insurer’s duty to defend its insured against third-party claims. In determining whether an insurer has a duty to defend, Texas generally uses the “eight corners rule,” under which an insurer’s duty to defend is determined by comparing the claims alleged within the four corners of the petition with the coverage provided within the four corners of the policy.
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Texas Department of Insurance Announces Extension of Claims Handling Deadlines Due to COVID-19
The Texas Department of Insurance (TDI) has announced that the claims-handling deadlines imposed by Texas prompt-payment laws are extended by 15 days. The extension will assist carriers in responding to the Coronavirus pandemic and results from the combined operation of actions taken by Texas Governor Greg Abbott and Texas Insurance Commissioner Kent Sullivan.
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Texas Department of Insurance Provides Evolving Industry Guidance in Response to Coronavirus
In response to the outbreak of Covid-19, the Texas Department of Insurance (TDI) has issued almost daily updates for insurance companies, agents, and other regulated parties. Some of the steps TDI has taken which are of interest to the industry include the following
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Texas Department of Insurance Warns Insurance Agents and TPAs About Unauthorized Insurance Liability
The Texas Department of Insurance (“TDI”) has issued a warning about certain unauthorized insurance and the liability that can attach to third-party administrators (“TPAs”) and insurance agents that are involved in unauthorized insurance transactions, even when those parties hold valid TDI licenses.
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LL Surplus Lines Series (Entry 6): Texas Legislature Considers Bills Clarifying Availability of Wind/Hail Cover from Surplus Lines Carriers
Texas’ legislature is considering bills that would amend Texas’ insurance code to clarify that eligible surplus lines insurers may offer windstorm and hail insurance in areas already served by the Texas Windstorm Insurance Association (“TWIA”).
Read More LL Surplus Lines Series (Entry 6): Texas Legislature Considers Bills Clarifying Availability of Wind/Hail Cover from Surplus Lines Carriers
Texas Insurance Commissioner Reappointed
Current Texas Insurance Commissioner Kent Sullivan has been appointed to a second term by Texas Governor Greg Abbott. Sullivan’s new term, which is subject to Senate Confirmation, expires on February 1, 2021.
Read More Texas Insurance Commissioner Reappointed