SECTION 5.9404. Policy Forms and Types of Coverage

(a) Definitions. The following words and terms when used in this section shall have the following meanings unless the context clearly indicates otherwise.

(1) Class 1 designated underserved area--An area determined and designated by rule as an underserved area by the Commissioner of Insurance, pursuant to both Articles 21.49-12 and 5.35-3 of the Insurance Code.

(2) Class 2 designated underserved area--An area determined and designated by rule as an underserved area by the Commissioner of Insurance, pursuant to Article 21.49-12 of the Insurance Code.

(b) Forms.

(1) The following forms may be used in Class 1 designated underserved areas in writing coverage through the MAP:

(A) a residential property insurance policy form and endorsements promulgated pursuant to Article 5.35 of the Insurance Code;

(B) a residential property insurance policy form and endorsements promulgated pursuant to Article 5.35-3 of the Insurance Code except farm and ranch or farm and ranch owners policy forms; and

(C) additional endorsements filed by an individual insurer pursuant to Article 5.35 of the Insurance Code and approved by the Commissioner.

(2) The following forms may be used in Class 2 designated underserved areas in writing coverage through the MAP:

(A) a residential property insurance policy form and endorsements promulgated pursuant to Article 5.35 of the Insurance Code; and

(B) additional endorsements filed by an individual insurer pursuant to Article 5.35 of the Insurance Code and approved by the Commissioner.

(c) Form rules. The rules governing the writing of the policies placed through the MAP shall be the same rules promulgated in the Texas Personal Lines Manual for each type of policy form adopted by the Commissioner of Insurance pursuant to Articles 5.35 and 5.35-3 of the Insurance Code except farm and ranch and farm and ranch owners policy forms.

(d) Types of coverage.

(1) Coverage may be provided by participating insurers through the MAP for residential risks, except coverage for the perils of windstorm and hail for those risks that are eligible for windstorm and hail coverage through the Texas Catastrophe Property Insurance Association pursuant to Article 21.49 of the Insurance Code.

(2) The types of coverage that may be provided in Class 1 designated underserved areas are:

(A) basic fire and extended coverage;

(B) named perils;

(C) broad form named perils;

(D) additional named perils, either separately or in combination;

(E) all risk coverage;

(F) any other coverage available under policy forms and endorsements promulgated pursuant to Articles 5.35 or 5.35-3 of the Insurance Code, except farm and ranch and farm and ranch owners policy forms or filed by an individual insurer pursuant to Article 5.35 and approved by the Commissioner.

(3) The types of coverage that may be provided in Class 2 designated underserved areas are:

(A) basic fire and extended coverage;

(B) named perils;

(C) broad form named perils;

(D) all risk coverage;

(E) any other coverage available under policy forms and endorsements promulgated pursuant to Article 5.35 of the Insurance Code or filed by an individual insurer pursuant to Article 5.35 and approved by the Commissioner.

Source Note: The provisions of this §5.9404 adopted to be effective October 1, 1996, 21 TexReg 8715; amended to be effective August 1, 1998, 23 TexReg 7587; transferred effective April 16, 1999, 24 TexReg 3092; amended to be effective June 26, 2000, 25 TexReg 6144