SECTION 5.4911. Insurance Policy Forms, Endorsements, Manual Rules, Application Forms, and Underwriting Guidelines

(a) The Association shall submit insurance policy forms, endorsements, manual rules, and application forms to the department for commissioner approval.

(1) Each policy form, endorsement, manual rule, and application form submission must include all information required by §5.9310 and §5.9320 of this chapter (relating to Property and Casualty Filing Transmittal Form and Required Information for the Preparation and Submission of Policy Form, Endorsement, or Manual Rule (other than rating manual) Filings, respectively).

(2) The department shall provide public notice of the submission not later than the 10th day after the filing is received by the department. The notice, shall be posted on the department's website and in the Texas Register, and shall indicate that the submission is available for review at the Office of the Chief Clerk of the Texas Department of Insurance during the period the petition is pending.

(3) Not later than the 20th day after notice of the submission is posted as provided under paragraph (2) of this subsection, a person may request a public hearing on the submission. The request must be in writing and submitted to the commissioner through the Chief Clerk of the Texas Department of Insurance.

(4) The department will provide not less than 10 days notice of a public hearing to consider a submission under this section. The department may set a public hearing without a request under paragraph (3) of this subsection. Notice of the hearing shall be posted in the Texas Register.

(5) Written comments on the submission must be submitted within 30 days after notice of the submission is posted as provided under paragraph (2) of this subsection, or on or before the date of a public hearing, if that date is later.

(6) The commissioner shall approve or disapprove by order any submission made under this section. The commissioner may delegate this authority to department staff as the commissioner deems necessary and appropriate.

(b) The Association may not submit under this section any filing required to be made under Chapter 2210, Subchapter H, of the Insurance Code, including a filing required to be made under the Insurance Code §§2210.351, 2210.352, or 2210.361.

(c) The commissioner shall not be required to approve or disapprove submitted items as a group. The commissioner may approve some items and disapprove other items submitted; however, the commissioner must approve or disapprove each form in its entirety without modification, and if the commissioner disapproves a form, the commissioner shall notify the Association of the reasons for such disapproval. Except as provided in this section, the Association may not use an insurance policy form, endorsement, manual rule, or application form that has not been approved by the commissioner.

(d) The Association may:

(1) modify or withdraw a submission, in whole or in part, before it is approved or disapproved by providing written notice to the department;

(2) seek to amend an approved insurance policy form, endorsement, manual rule, or application form pursuant to the procedures set forth in subsection (a) of this section; and

(3) seek to withdraw an approved insurance policy form, endorsement, manual rule, or application form by requesting withdrawal of the items pursuant to the procedures set forth in subsection (a) of this section.

(e) Any submission pending on March 26, 2010, shall be considered as being submitted on March 26, 2010.

(f) The commissioner may without further notice and hearing approve without modification, in whole or in part, the Association's insurance policy forms, endorsements, and manual rules that have been previously adopted by reference under this title, including the policy forms and manual rules that have been adopted on an emergency basis under §5.4909 of this subchapter (relating to Policy Forms and Manual Rules) and §5.4910 of this subchapter (relating to Cancellation and Minimum Retained Premium). The commissioner may approve the previously adopted-by-reference forms to be effective on or before March 26, 2010. After March 26, 2010, the Association may not use any previously adopted-by-reference insurance policy forms, endorsements, or manual rules that have not been approved by the commissioner pursuant to this section.

(g) The Association must submit its current residential and commercial underwriting guidelines to the department on or before March 31, 2010. The Association must submit any amendments to its residential and commercial underwriting guidelines not later than the 10th day after the date that the amended underwriting guideline becomes effective. Underwriting guideline submissions must include all information required by §5.9342 of this chapter (relating to Filing Requirements). As used in this subsection, the term "underwriting guidelines" means a rule, standard, guideline, or practice, whether written, oral, or electronic, that is used by the Association or its agent as required by the Association to determine whether to accept or reject an application for coverage under a residential or commercial Association insurance policy or to determine how to classify those risks that are accepted for the purpose of determining a rate.

(h) The Association must submit for approval its current application forms to the department on or before March 31, 2010. The Association may continue to use the application forms submitted under this subsection unless the forms are disapproved by the Commissioner.

Source Note: The provisions of this §5.4911 adopted to be effective February 24, 2010, 35 TexReg 2160