Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 5 - PROPERTY AND CASUALTY INSURANCE
Subchapter A - AUTOMOBILE INSURANCE
Division 7 - FINANCIAL RESPONSIBILITY VERIFICATION PROGRAM
Section 5.606 - Requirements for Insurers Using the Web Services Program

Universal Citation: 28 TX Admin Code § 5.606

Current through Reg. 50, No. 13; March 28, 2025

(a) Each web services insurer must meet the requirements of the web services program through both the event based process and the ongoing verification process.

(b) Each insurer electing to use the web services program for the event based and ongoing verification processes must provide written notice to the department. Written notice must name the insurer or each insurer in a group, be signed by an officer of the company or group, and be submitted to the Financial Responsibility Verification Program Coordinator, Property and Casualty Program, Mail Code 105-5C, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104, not later than 10 business days after the date this section is effective. All submissions to the department under this division must be made to the Financial Responsibility Verification Program Coordinator (coordinator) unless otherwise specified.

(c) Not later than 30 calendar days after the insurer notifies the department of its election to become a web services insurer, the insurer must submit to the coordinator for approval written documentation and specifications addressing § 5.607(a) - (e) of this subchapter (relating to Web Services Program System Requirements). Written documentation and specifications must include a detailed project plan including a timeline, a full description of the proposed web services solution, and other information necessary to establish compliance with the web services program requirements. If it is determined as specified in subsection (i) of this section that the insurer's submission does not propose a solution that will meet all system and performance requirements, the insurer must begin program development to meet requirements of the database program as detailed in § 5.604 and § 5.605 of this subchapter (relating to Reporting Requirements for Insurers Using the Database Program and Data Error Correction Requirements for Insurers Using the Database Program).

(d) If an insurer's web services documentation and specifications have been determined to meet the system requirements of subsection (c) of this section and the insurer has obtained the appropriate department approval, the insurer must within 90 calendar days after receiving written notice of department approval as required in subsection (c) of this section submit to the coordinator for approval documentation showing that the web services insurer is capable of meeting all system and performance requirements detailed in § 5.607 and § 5.608 of this subchapter (relating to Web Services Program Performance Requirements). Such documentation must include a detailed progress report in compliance with the submitted project plan and timeline, and other information necessary to establish compliance with the web services program requirements. If it is determined as specified in subsection (i) of this section that the insurer's submission does not meet all system and performance requirements, the insurer must begin program development to meet requirements of the database program as detailed in § 5.604 and § 5.605 of this subchapter.

(e) Each insurer that has met the system and performance requirements of subsection (d) of this section must within 180 calendar days after receiving written notice of department approval as required in subsection (c) of this section submit to the coordinator for approval documentation showing the insurer is able to meet all system and performance requirements detailed in § 5.607 and § 5.608 of this subchapter. Such documentation shall include testing methodology, testing data sets, testing results, and other information necessary to establish compliance with the web services program requirements. If it is determined as specified in subsection (i) of this section that the insurer's submission does not meet all system and performance requirements, the insurer shall have 30 calendar days to comply with the database program requirements in § 5.604 and § 5.605 of this subchapter and begin reporting data.

(f) Following department approval as required in subsection (e) of this section, each web services insurer shall begin a data clean-up phase. Required data clean-up procedures include:

(1) the web services insurer, and/or its delegated MGA, will receive a file of registered vehicles from TxDOT and must match insurance policy records to the file of registered vehicles;

(2) insurance policy records that cannot be matched to a registered vehicle will be required to undergo a data correction process, including for errors beyond the web services insurer's authority to correct;

(3) as necessary, the web services insurer must contact the policyholder to confirm or correct information as follows:
(A) within 10 calendar days of discovering the information indicated to be in error, request from the policyholder confirmation of the insurer's existing information or corrected information;

(B) request that the policyholder respond within 14 calendar days; however, the insurer shall not be subject to, nor shall the insurer subject the policyholder to, any penalty for the policyholder's non-compliance; and

(C) make any necessary correction within 15 calendar days after receipt of a response from the policyholder;

(4) while not required, the insurer may send additional notices concerning that non-match error to the policyholder if the insurer does not receive a correction response from the policyholder; however, the insurer shall not be subject to, nor shall the insurer subject the policyholder to, any penalty for the policyholder's non-compliance; and

(5) the web services insurer, and/or its delegated MGA, may request a reload of TxDOT data as needed during the data clean-up/correction process.

(g) Each web services insurer must achieve and maintain a 95 percent match rate by January 1, 2008 and a 98 percent match rate by January 1, 2010. The insurer and/or the vendor shall submit information and documentation to the coordinator on request indicating whether the insurer has achieved the required match rate. If it is determined as specified in subsection (i) of this section that the insurer has not met the match rate and all system and performance requirements, the insurer shall have 30 days to comply with the database program requirements in § 5.604 and § 5.605 of this subchapter and begin reporting data.

(h) Each insurer approved to use the web services program must maintain all web service requirements. The coordinator may request information from the vendor and/or the insurer to confirm that the web services insurer is maintaining all web service requirements. If it is determined as specified in subsection (i) of this section that a web services insurer that has previously met all web services requirements is unable to maintain the system and performance requirements as required in this section and § 5.607 and § 5.608 of this subchapter the web services insurer shall:

(1) no longer be allowed to operate as a web services insurer; and

(2) have 30 days to comply with the database program requirements in § 5.604 and § 5.605 of this subchapter and begin reporting data.

(i) The procedure for determining whether an insurer has met the requirements of this section shall be as follows:

(1) In computing any period of time prescribed or allowed by this division, the day of the act, event, or default after which the designated period of time begins to run shall not be included, but the last day of the period so computed shall be included, unless it be a Saturday, Sunday, or legal holiday, in which event the period runs until the end of the next day which is neither a Saturday, Sunday nor a legal holiday;

(2) On or before the date specified in subsections (c), (d), or (e) of this section, and as requested by the coordinator under subsections (g) or (h) of this section, the insurer shall submit all specifications, documentation, and other data to the coordinator;

(3) Within 14 calendar days of submission by the insurer, the coordinator shall review the submission and provide written notification to the insurer if the submission is determined to be in compliance or if it fails to meet the requirements;

(4) If the coordinator notifies the insurer that the submission fails to meet the requirements, the insurer may appeal to the commissioner for review of the coordinator's decision by making a written request to the coordinator within 20 calendar days of the date the insurer receives the coordinator's written decision. The written request for review must provide a rebuttal of the coordinator's written decision. If the insurer does not appeal the coordinator's written decision within the 20 calendar day period, the coordinator's written decision shall become final; and

(5) Within 14 calendar days of receiving the rebuttal, the commissioner, or the commissioner's authorized representative, shall make a written determination on the basis of the original submission, the coordinator's written decision, and the insurer's rebuttal.

(j) A decision under subsection (i)(5) of this section may be appealed under Texas Insurance Code § 36.201.

(k) An appeal to the commissioner under subsection (i) of this section does not stay or extend the period for compliance with the database program under subsections (c), (d), (e), (g), and (h) of this section.

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