Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 5 - PROPERTY AND CASUALTY INSURANCE
Subchapter N - RESIDENTIAL PROPERTY INSURANCE MARKET ASSISTANCE PROGRAM
Division 2 - PLAN OF OPERATION
Section 5.9409 - Operations
Universal Citation: 28 TX Admin Code § 5.9409
Current through Reg. 50, No. 26; June 27, 2025
(a) Application process.
(1) Applications will be accepted from a duly
licensed local recording agent or from a salaried representative for an insurer
whose plan of operation does not contemplate the use of local recording
agents.
(2) Agents submitting
applications to the MAP shall use the application form (TMAP-10) promulgated by
the Department for use with the MAP, shall submit a completed application
packet as specified in paragraph (4) of this subsection, and shall submit such
applications to the Department's MAP Division.
(3) Applicants may apply directly to the MAP
by contacting the Department to obtain the Department's assistance in
completing the MAP application form (TMAP-10). Applicants applying directly to
the MAP must meet the same eligibility requirements as provided in §5.9406 of
this plan of operation.
(4) For
applicants applying directly to the MAP, information will be requested by
Department staff from the applicant based on the same information elements
required in the MAP application form (TMAP-10) required of originating agents.
Information relating to the originating agent will be marked "not applicable"
or "N/A." In the applicant's signature box, the Department staff member will
indicate "call received by TDI on (date)" with staff member's
initials.
(5) The Department staff
will assist applicants applying directly to the MAP as specified in
subparagraphs (A)-(C) of this paragraph.
(A)
The Department staff member will request ZIP code information to verify that
the risk is located in a designated underserved area.
(B) The Department staff member will request
documentation as specified in subsection (e) of §5.9406 to verify that the
applicant has been unable to obtain residential property insurance within the
one year period preceding the date of application to the MAP. If requested, the
Department staff member will make a diligent effort to assist the applicant in
obtaining the required documentation concerning the applicant's inability to
obtain residential property insurance.
(C) Upon receipt of the documentation showing
the applicant's inability to obtain residential property insurance, the
Department staff member will determine if the applicant is eligible to
participate in the MAP.
(6) A completed application packet shall
consist of the following to be eligible for referral to participating insurers:
(A) a completed application form (TMAP-10)
signed by both the applicant and the originating agent; or if an applicant
applies directly to the Department, the application will be initialed and dated
by the staff member assisting with the completion of the application as
provided in paragraph (5) of this subsection.
(B) declination letter or letters or
non-eligibility letter or letters as provided in §5.9406 of this plan of
operation (also §
5.9406 of this title (relating to
Eligibility for Referral)); and
(C)
cancellation or non-renewal notices as provided in §5.9406 of this plan of
operation (also §
5.9406 of this title (relating to
Eligibility for Referral)).
(7) An application shall indicate if the
applicant has a voluntary inspection property condition evaluation report and
certificate of insurability, as specified in §5.9406 of this plan of operation
(also §
5.9406 of this title, relating to
Eligibility for Referral). The applicant may provide a copy of the report and
the certificate to the insurer at the time of the insurer's inspection of the
residential risk.
(b) Application review. The Department's MAP Division shall perform the application review and referral as specified in this subsection and subsection (c) of this section.
(1) If the application is submitted
by an originating agent, preliminary processing shall include review of the
application for signatures of the applicant and originating agent, logging in
of names and addresses of applicant and originating agent and notification of
the originating agent in writing or via electronic means of the receipt of the
application.
(2) If the applicant
has applied directly to the MAP, preliminary processing shall include logging
in name and address of the applicant.
(3) Applications, including the information
on the residential risks proposed to be insured, shall be verified by the
Department's MAP Division for compliance with the requirements specified in
this section and in §5.9406 of this plan of operation (also §
5.9406 of this title, relating to
Eligibility for Referral).
(4)
Applications submitted by an originating agent that are ineligible for referral
through the MAP will be returned to the originating agent within 14 calendar
days of receipt by the Department with written documentation stating the reason
or reasons for the ineligibility. A copy of the notice of ineligibility shall
be sent to the applicant.
(c) Referral of applications.
(1) Information from eligible MAP
applications as specified in paragraph (2) of this subsection shall be faxed or
provided electronically by the Department's MAP Division to all participating
insurers for selection for purposes of issuing a quote.
(A) If a policy has not been issued within 90
days from the date the application is entered on the Department's MAP
application data base, the Department's MAP Division shall notify the
originating agent, if the application was submitted by an originating agent, or
the applicant, if the applicant applied directly to the Department, in writing
or via electronic means.
(B) The
MAP application shall remain as an active MAP application available for
selection and quoting by an insurer until a policy is issued but for no longer
than one year from the date the application was either entered on the
electronic bulletin board or entered on the MAP application database.
(C) If a policy has not been issued within
one year from the date the application is entered on the MAP application
database and faxed to participating insurers, the application shall be
considered inactive, and the Department's MAP Division shall notify the
applicant in writing and the originating agent in writing or via electronic
means.
(2) The
information provided to participating insurers shall include the following:
(A) originating agent's name, mailing
address, telephone number, fax number, and agent's TDI identification number if
submitted by an originating agent;
(B) name of applicant and co-applicant,
mailing address, and phone number;
(C) applicant's military status;
(D) designated underserved area in which
property to be insured is located, including location zip code, whether in
Class 1 designated underserved area or Class 2 designated underserved area, and
the county where the property is located;
(E) location of property to be insured,
including if same as applicant's mailing address, and if not, street address
and city;
(F) rating information:
(i) public protection classification code
used;
(ii) type of
construction;
(iii) policy form
requested;
(iv) dwelling and
personal property coverage amounts;
(v) deductible;
(vi) year built;
(vii) structure type;
(viii) usage type;
(ix) owner or tenant occupancy;
(G) availability of Voluntary
Inspection Program certification.
(d) Insurers' processing of selected applications.
(1) Application review and
property inspection.
(A) An insurer may
select MAP applications for review based on criteria contained on the
application.
(B) Prior to issuing a
quote or writing a policy, an insurer should underwrite the risk in accordance
with the insurer's applicable underwriting procedures, including inspecting the
property and obtaining the insurer's own application for insurance. An insurer
shall evaluate each risk in accordance with the provisions set forth in
§§5.9404 and 5.9405 of this plan of operation (also §
5.9404 of this title, relating to
Policy Forms and Types of Coverage, and §
5.9405 of this title, relating to
Rates).
(2)
Determination of whether to issue premium quote.
(A) An insurer shall make its premium quote
or indicate the insurer's refusal to quote within 30 days after selecting the
application.
(B) If the insurer,
however, has not quoted or refused to quote by the 30th day after selecting an
application, the insurer shall be considered to have requested additional time
and shall have an additional 15 days to quote or to refuse to quote. Within 45
days after selecting an application, the insurer shall notify the Department's
MAP Division by mail or facsimile transmission that the insurer has quoted or
has refused to quote.
(C) An
insurer shall issue a premium quote as specified in paragraph (3) of this
subsection.
(3) Issuance
of premium quote. Insurers shall issue premium quotes in accordance with the
following provisions:
(A) An insurer shall
send its quote directly to the MAP applicant and simultaneously report the
required information as specified in subparagraph (C) of this paragraph to the
Department by mail or facsimile transmission.
(B) An insurer's quote shall be valid for at
least 30 days after the date the quote is issued. Within 35 days after issuance
of the quote, the insurer shall notify the Department's MAP Division by mail or
facsimile transmission that the quote has been accepted or rejected by the
applicant. If an applicant has not affirmatively rejected the quote by the
thirty-first day after the quote is issued, the insurer shall notify the
Department's MAP Division by mail or facsimile transmission that the quote has
been rejected.
(C) An insurer's
quote shall contain the following information:
(i) name and address of MAP
applicant;
(ii) MAP application TDI
reference number;
(iii) location of
the residential risk to be insured;
(iv) insurer's name, mailing address, and
phone number;
(v) type of policy
being quoted;
(vi) the amount of
premium due for the policy quoted, limits of liability, applicable deductible,
and term of the policy;
(vii)
issuance date and expiration date of the quote;
(viii) instructions for the applicant to
contact the issuing agent to accept the offered quote;
(ix) issuing agent's name, mailing address,
phone number, and fax number.
(4) Notification of issuance of policy. If
the application was submitted by an originating agent, within five business
days after the issuance date of the insurance policy, the insurer shall notify
the Department by mail or facsimile transmission and the originating agent in
writing or via electronic means that the insurance policy was issued. The
notification shall include the policy number and the name, address, telephone
number, and fax number of the issuing agent.
(5) Inactive application. An application
shall be considered inactive upon acceptance of a quote by the
applicant.
(e) MAP data collection and analysis.
(1) The Department
shall provide quarterly data analysis reports to the Executive Committee to
enable the Executive Committee to fully evaluate the operations of the
MAP.
(2) Upon the Executive
Committee's request, the Department shall provide additional data and analyses
of data for purposes of review of the MAP or for other purposes related to the
administration of the MAP as deemed appropriate by the Executive
Committee.
(f) Educational initiatives.
(1) The Department
may provide educational information to consumers, agents, and insurers through:
(A) the development and distribution of
educational materials outlining the operation of the MAP;
(B) seminars and workshops;
(C) the print and electronic media, including
public service announcements, press releases, TV and radio community programs,
and local TV access stations.
(D)
coordination of speaking and training programs with trade associations and
consumer organizations; and
(E) use
of the Internet System.
(2) Participating insurers may provide
information to their appointed agents for distribution to consumers.
(3) Participating insurers may include a
brief description of the MAP with any cancellation or non-renewal notice issued
on residential property insurance located in a designated underserved
area.
(g) Complaints procedures.
(1) Complaints relating to the
operation of the MAP shall be received and processed by the Department's MAP
Division.
(2) The complaints shall
be handled in accordance with the Department's standard complaints handling
procedures.
(3) Until final
disposition of the complaint, the complainant shall be notified quarterly by
the Department's MAP Division of the status of the complaint.
(4) The MAP Executive Committee shall be
notified as part of its review and monitoring of the MAP of all complaints
relating to the operation of the MAP.
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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