SECTION 5.4203. Good Cause Extensions for Insurance Code §2210.573(b) and (d) and §2210.5741(b)

(a) This section defines "good cause" for the purpose of extending the deadlines in Insurance Code §2210.573(b) and (d) and §2210.5741(b). In this section, "good cause" means objective facts beyond the association's control that reasonably caused or may cause the association to fail to meet a deadline in Insurance Code §2210.573(b) or (d) or §2210.5741(b).

(b) If the association shows good cause in a request for an extension, or in the absence of a request, if the Commissioner determines good cause exists, the Commissioner may, consistent with subsection (e) of this section, extend the deadlines established under Insurance Code §2210.573(b) and (d) and §2210.5741(b). An extension granted under this section is effective on the date of the deadline for which it is granted. An extension is limited to the claims for which it is granted.

(c) A request for an extension under this section must:

(1) be sent in writing to the department, under §5.4251 of this title (relating to Requests and Submissions to the Department);

(2) specify the deadline or deadlines for which an extension is requested;

(3) identify the claims for which an extension is requested by:

(A) the type of policy; and

(B) the time period during which the event occurred and a description of the event that gave rise to the claims;

(4) specify the association's estimated total number of claims arising from the event that gave rise to the claims for which an extension is requested;

(5) describe the good cause for which the association cannot meet the deadlines in Insurance Code §2210.573(b) and (d) and §2210.5741(b); and

(6) if the association requests a specific amount of time, provide an explanation for the time requested.

(d) In addition to the information described in subsection (c) of this section, the Commissioner may use any other information the Commissioner deems appropriate when determining if good cause exists to extend the deadlines in Insurance Code §2210.573(b) and (d) and §2210.5741(b).

(e) For deadlines under this section and Insurance Code Chapter 2210, Subchapter L-1 that apply only to the association, the Commissioner may not extend the deadlines more than 120 days in the aggregate for claims arising from the same occurrence.

(f) This section applies to the remaining term of association policies ceded to an insurer under the assumption reinsurance depopulation program in Insurance Code Chapter 2210, Subchapter O. If one of these insurers seeks a deadline extension under this section, the insurer must comply with subsections (a) - (c) of this section, as though it were the association. This section does not apply to a policy renewed under Insurance Code §2210.703.

Source Note: The provisions of this §5.4203 adopted to be effective June 24, 2018, 43 TexReg 3887; amended to be effective December 31, 2019, 44 TexReg 8314