Changes to Insurance Code

In addition to changes that affect only TWIA, several laws passed during the 86th Legislative Session authorize changes to the insurance industry as a whole. We have outlined below changes that also apply to the Texas Windstorm Insurance Association and the Texas FAIR Plan Association, effective September 1, 2019.

Updates to the Texas Insurance Code: 

  • Adjuster changes - A contractor may not act as a public adjuster for any property for which they are already providing or may provide contracting services. In addition, adjusters must not use a different name than the one on their adjuster license.
  • Deductibles
    • Payment requirements – Code was amended to explicitly require property insurance claimants to pay deductibles required under the terms of their policy.
    • Consumer education – The Texas Department of Insurance, in coordination with applicable state agencies and stakeholders, must develop and implement a consumer education program about property insurance deductibles which include information on prohibited conduct.
    • Proof of payment - An insurer may require proof of payment by a policyholder of any deductible applicable to their claim on a policy with replacement cost coverage before releasing withheld recoverable depreciation or a replacement cost holdback.
    • Update to the Business & Commerce Code - Code now stipulates contract language requirements related to deductible payments for claims of $1000 or more and outlines the offenses related to the payment of deductibles by a person other than a policyholder.

Should you wish to review the bills at the heart of these changes, the following links take you to a PDF of House Bill 2659, House Bill 2103, and House Bill 2102.

To help us communicate the many changes happening at TWIA, we launched a webpage dedicated to recent legislation. Be sure to check it out!