Commissioner’ s Bulletin B-0014-24
On July 18, 2024, the Texas Department of Insurance (TDI) published Commissioner’ s Bulletin B-0014-24, which focuses on the procedures for handling property and casualty claims following Hurricane Beryl.
Due to the large number of claims related to Hurricane Beryl, Insurance Code Section 542.059 gives insurers additional time to process some claims. TX INS s 542.059 extends the claim-handling deadlines for an additional 15 days in the event of a weather-related catastrophe or major natural disaster, such as Hurricane Beryl. Deadlines for processing those claims under Chapter 542, Subchapter B, are extended in 67 affected counties, listed below:
Anderson, Angelina, Aransas, Austin, Bowie, Brazoria, Brazos, Burleson, Calhoun, Cameron, Camp, Cass, Chambers, Cherokee, Colorado, Dewitt, Fayette, Fort Bend, Freestone, Galveston, Goliad, Gregg, Grimes, Hardin, Harris, Harrison, Hidalgo, Houston, Jackson, Jasper, Jefferson, Kenedy, Kleberg, Lavaca, Lee, Leon, Liberty, Madison, Marion, Matagorda, Milam, Montgomery, Morris, Nacogdoches, Newton, Nueces, Orange, Panola, Polk, Refugio, Robertson, Rusk, Sabine, San Augustine, San Jacinto, San Patricio, Shelby, Trinity, Tyler, Upshur, Victoria, Walker, Waller, Washington, Webb, Wharton, and Willacy.
TDI expects insurers to process claims promptly and accurately, ensuring clear communication with policyholders. TDI wants consumers to understand their rights in the insurance claims process and is here to help. Consumers with questions can get insurance tips after Hurricane Beryl or call the TDI Help Line at 800-252-3439.
TDI expects insurers to only utilize this extension as necessary. To meet these expectations, TDI encourages insurers to use tools already available to them such as emergency adjusters. Consumers should continue to get timely service and prompt claim payments. Insurers must continue to promptly:
- Identify, evaluate, and resolve claims.
- Acknowledge receipt of a claim.
- Make appropriate assignments for the investigation of a claim.
Commissioner’s Bulletin No. B-0007-24 - Hurricane Beryl - Property and Casualty Vacancy Provisions and Premium Payments:
Vacancy provisions:
- TDI expects insurers to work with policyholders temporarily displaced by Hurricane Beryl. Insurers should suspend policy vacancy provisions as long as reasonably necessary. This doesn't apply to a vacancy provision for policyholders who have moved permanently from their homes or businesses.
- For questions about vacancy provisions, call the Property and Casualty Lines Office at 512-676-6710 or email PropertyCasualty@tdi.texas.gov.
Grace period for premium payments:
- TDI expects insurers to work with policyholders affected by Hurricane Beryl who need more time to pay premiums to continue coverage. This may include minimizing penalties or charges for late payments, or temporarily suspending payment or repayment plans.
- TDI will work with insurers to minimize the effects of any suspension of premium payments, specifically regarding financial review requirements.
- This grace period doesn't mean the forgiveness of premium.
Commissioner’s Bulletin B-0008-24 - Hurricane Beryl - Adjusters and Repairs: The DOI reminds insurers about the option to use nonresident emergency adjusters to handle disaster-related claims. In addition, the DOI reminds insurers, contractors, and public insurance adjusters about their statutory duties with respect to fair and prompt claim settlement practices, accurate representation of the terms of a policy, illegal waivers of deductibles or rebate promises for all or part of a deductible, licensing, avoidance of conflicts of interest, and proper advertising of services.
Commissioner's Bulletin No. B-0009-24. Hurricane Beryl - Property and Casualty Underwriting, Rating, and Nonrenewing:
The TDI expects the following:
- Commercial auto: If commercial auto policyholders are helping with the relief effort for Hurricane Beryl, insurers shouldn't reclassify, rerate, cancel, nonrenew, or refuse to provide coverage solely because of that participation.
- Victims and evacuees: Insurers should not rerate, cancel, nonrenew, refuse to provide coverage, or change a policyholder's classification or premium solely because a policyholder is a victim or evacuee of Hurricane Beryl. An insurer extending coverage during a disaster declaration has the right to earn premium on that extended coverage.
- Credit scoring and information: Insurers must provide reasonable exceptions to an insurer's rates, rating classifications, or underwriting rules if consumer's credit information was harmed by:
- A catastrophic illness or injury;
- The death of a spouse, child, or parent;
- Temporary loss of employment;
- Divorce; or
- Identity theft.
- Insurers can also provide exceptions for other extraordinary events. The insurer may consider only credit information not affected by the event or must assign a neutral credit score. TDI expects insurers to avoid placing more burdens on victims or evacuees of Hurricane Beryl and encourages insurers to accept verbal requests in lieu of written. (Insurance Code Section 559.103 – PERSONAL LINES ONLY).
- Nonrenewal: Insurers nonrenewing a residential or farm or ranch owners policy because of three or more claims under a policy in any three-year period may not consider:
- Losses from natural causes.
- Claims filed but not paid or payable.
- Claims history for remediated water damage.
- Practices related to nonrenewal are also subject to restrictions against unfair discrimination. (Insurance Code Chapter 544, Subchapters A and B, and Sections 544.303, 544.353 – HOMEOWNERS ONLY; and 551.107- Commercial Property, Commercial Farmowners).
- Inquiries: Insurers may not nonrenew on the basis of a customer inquiry. An inquiry includes a question about how to file a claim and whether a policy will cover a loss, unless the question concerns specific damage that has occurred and that results in an investigation or claim. (Insurance Code Section 551.113- Personal Lines, Commercial Farmowners).
- Practices related to nonrenewal are also subject to restrictions against unfair discrimination.
Commissioner's Bulletin No. B-0010-24. Hurricane Beryl - Wind and Flood Losses:
The TDI expects the following:
- Wind losses - TDI expects insurers that deny coverage for wind losses to tell policyholders to check whether they have separate coverage from the Texas Windstorm Insurance Association (TWIA) or another windstorm insurer if the damage was in a coastal county.
- Flood losses - TDI expects insurers responding to flood loss questions and claims to provide information to their policyholders about possible help from the Federal Emergency Management Agency (FEMA). This should include FEMA contact information and a link to disasterassistance.gov.
- Flooded vehicles - A title for a salvage or nonrepairable vehicle with damage caused exclusively by flood must include a "FLOOD DAMAGE" notation. Titles for flood-damaged vehicles must comply with Transportation Code Chapter 501, Subchapter E. TDI expects insurers to take steps to make sure Vehicle Identification Numbers and other information is accurate. Get more information about salvage vehicle titles on the DMV website.