SECTION 5.4912. Filing and Issuance of Policy Forms Relating to Premium Surcharges under Insurance Code §§2210.612, 2210.613, and 2210.6131

(a) Not later than the 15th day after the effective date of this section, the association must file with the department policy forms that provide:

(1) that the policy is immediately subject to any surcharge the commissioner may determine under §5.4126 (relating to Determination of the Association Surcharge Percentage) of Division 3 of this subchapter;

(2) that the policyholder has 120 days from the date the policyholder receives the notice described in §5.4189(b) (relating to Notification Requirements) of Division 3 of this subchapter to pay the surcharge; and

(3) on the declarations page, a conspicuous notice in at least 12-point bolded font that the policy may be subject to an immediate premium surcharge, and that failure to pay will result in cancellation.

(b) The association must issue only policies that comply with subsection (a) of this section not later than 60 days after the department approves the policy forms filed under subsection (a) of this section.

Source Note: The provisions of this §5.4912 adopted to be effective March 9, 2016, 41 TexReg 1711