Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 5 - PROPERTY AND CASUALTY INSURANCE
Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION
Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES
Section 5.4182 - Method for Determining the Premium Surcharges

Universal Citation: 28 TX Admin Code § 5.4182

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

(a) The methods addressed in this section relating to contingent surcharges will apply to all:

(1) policies written and reported under the following annual statement lines of business: fire; allied lines; farm and ranch owners; homeowners; commercial multiple peril (nonliability portion); private passenger auto no fault (personal injury protection (PIP)), other private passenger auto liability, and private passenger auto physical damage; and commercial auto no fault (PIP), other commercial auto liability, and commercial auto physical damage; and

(2) personal and commercial risks assigned by TAIPA under Insurance Code Chapter 2151.

(b) The methods addressed in this section relating to association surcharges will apply to all association policies.

(c) The association surcharge will be determined by applying the association surcharge percentage to the policy premium determined in § 5.4181 of this division (relating to Premiums to be Surcharged), attributable to association-insured property located in the catastrophe area.

(d) The contingent surcharge will be determined by applying the contingent surcharge percentage to the policy premium determined in § 5.4181 of this division (relating to Premiums to be Surcharged), attributable to insured property located in the catastrophe area, including automobiles principally garaged in the catastrophe area.

(e) In cases where the policy is composite rated and the premium attributable to insured property located in the catastrophe area cannot be reasonably determined, the insurer must determine the contingent surcharge based on the insured address. If the insured address is within a designated catastrophe area, then the insurer must determine the contingent surcharge by applying the contingent surcharge percentage to the full policy premium determined in § 5.4181 of this division. If the insured address is not within a designated catastrophe area, then no premium surcharge applies to the policy.

Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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