SECTION 37.402. Definitions

In the liability insurance requirements, the terms "bodily injury" and "property damage" shall have the meanings given these terms by applicable state law. However, these terms do not include those liabilities which, consistent with standard industry practices, are excluded from coverage in liability policies for bodily injury and property damage. The agency intends the meanings of other terms used in the liability insurance requirements to be consistent with their common meanings within the insurance industry. The following definitions given of several of the terms are intended to assist in the understanding of these regulations and are not intended to limit their meanings in a way that conflicts with general insurance industry usage.

(1) Accidental occurrence - An accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured.

(2) Legal defense costs - Any expenses that an insurer incurs in defending against claims of third parties brought under the terms and conditions of an insurance policy.

(3) Nonsudden accidental occurrence - An occurrence which takes place over time and involves continuous or repeated exposure.

(4) Sudden accidental occurrence - An occurrence which is not continuous or repeated in nature.

Source Note: The provisions of this §37.402 adopted to be effective March 21, 2000, 25 TexReg 2347