SECTION 5.9700. Residential Property Declarations Pages and Deductible Disclosures

(a) All residential property insurance policy declarations pages must list and identify each type of deductible in the policy, including applicable endorsements, and state the exact dollar amount of each deductible. To identify a deductible, the insurer must provide a brief description, such as "Wind and Hail," "Earthquake," or "Jewelry."

(b) If a residential property insurance policy or endorsement contains a provision that may cause the exact dollar amount of a deductible under the policy to change, the declarations page or a separate disclosure page must identify or include a written disclosure that clearly identifies the applicable policy provision or endorsement. The policy provision or endorsement must explain how any change in the applicable deductible amount is determined. To identify the applicable policy provision or endorsement, the insurer must provide a brief description and reference, such as "Inflation Adjustments: See page 1, Section A.2.a."

(c) Insurers may provide disclosures under this section on a separate disclosure page. The separate disclosure page must follow immediately after the declarations page.

(d) A declarations page and a separate disclosure page may each consist of more than one page.

(e) Insurers must issue a declarations page at renewal if the dollar amount of a deductible changes on the declarations page or separate disclosure page. Alternatively, insurers may issue a renewal certificate that meets the requirements of this rule and Insurance Code §2301.056.

(f) Insurers and agents that provide separate disclosure pages must include them with the declarations page each time they provide a declarations page, as defined in §5.9327 of this title (relating to Residential Property Declarations Page Forms), to a policyholder.

Source Note: The provisions of this §5.9700 adopted to be effective September 1, 2016, 41 TexReg 1486; amended to be effective December 21, 2020, 45 TexReg 9225