REGULATORY ACTIVITY:

• TDI posted a rule proposal that repeals and amends requirements for the delivery or renewal of named driver automobile policies. This rule implements legislation passed in 2019, which prohibits named driver automobile policies beginning January 1, 2020. To view the proposed rule, go to https://www.tdi.texas.gov/rules/2020/index.html.

REGULATORY ACTIVITY:

• On  March 13,  2020,  Governor Abbott issued a statewide disaster declaration due to the COVID-19 pandemic. As the governor noted, it is critical to take steps to prepare for, respond to, and mitigate the spread of COVID-19, particularly by increasing Texans'  access to treatment and testing.  Telemedicine has emerged as a vital tool in combating the spread of infectious diseases, in part because it limits physical contact between a  patient and their physician and other patients.  Limiting person-to-person contact is key to slowing the spread of this virus.  It is critical to preserve physician capacity during the  COVID-19  disaster, thus physicians'  exposure to the virus must be reduced to the greatest extent possible. Furthermore, the efficient use of telemedicine would allow physicians to focus more of their time on those in the greatest need for in-person care. Finally, telemedicine could allow those physicians who do become ill to continue treating patients in some circumstances.   Unfortunately,  limited reimbursement rates for telemedicine services serve as a barrier to the expanded use of such technology because physicians are reluctant to accept significantly reduced payment for such services. Some physicians may also be reluctant to engage in telemedicine because of health benefit plans' different documentation requirements for telemedicine services as opposed to in-person services.     The new rule is intended to reduce these barriers and expand telemedicine by implementing parity with payment and documentation requirements applicable to in- person services. Under the rule, services that are the same must be reimbursed at the same rate whether provided in-person or through telemedicine.  Similarly, the new rule does not permit health benefit plans to require documentation for telemedicine services beyond what the plan already requires for in-person services.    The new rule also reflects requirements from Texas Insurance Code Chapter 1455, including requirements that: (1)  require health benefit plans to provide coverage for covered services or procedures delivered by telemedicine on the same basis and to the same extent that the plan provides coverage for the same service or procedure in an in-person setting; and (2) prohibit health benefit plans from limiting, denying, or reducing coverage based on the telemedicine platform used by the physician,  with limited exceptions.

REGULATORY ACTIVITY:

• The insurance department issued Commissioner's Bulletin 2020-02 temporary vehicle coverage provisions in House Bill 3420.  Personal auto insurers will need to revise and file their policies to comply with the temporary vehicle coverage provisions in House Bill 3420, passed by the 2019 Texas Legislature. HB 3420 requires personal auto policies to provide primary liability coverage for temporary vehicles as defined in the law.  To view the bulletin, go to https://www.tdi.texas.gov/bulletins/index.html.

REGULATORY ACTIVITY:

• Issued bulletin B-0012-19 regarding Texas Automobile Insurance Association Rates. The Commissioner of Insurance has approved changes in the rates for private passenger and commercial automobile insurance for the Texas Automobile Insurance Plan Association (TAIPA). The changes are effective March 1, 2020, for new and renewal business by Commissioner’s Order No. 2019-6138. The new rates represent an overall increase of 4.9% in private passenger automobile rates and an overall increase of 4.8% in commercial automobile rates.  Specifically, for private passenger automobile insurance, the new rates represent increases of 5.0% for bodily injury liability, 4.9% for property damage liability, 4.0% for personal injury protection, 4.3% for uninsured/underinsured motorist bodily injury liability, and 1.7% for uninsured/underinsured motorist property damage liability.  For commercial automobile insurance, the new rates represent increases of 4.8% for bodily injury liability, 5.0% for property damage liability, 1.3% for personal injury protection, 3.6% for uninsured/underinsured motorist bodily injury liability, and 3.2% for uninsured/underinsured motorist property damage liability rates.  For questions about this bulletin, contact the Property and Casualty Actuarial Office by phone at 512-676-6700 or by email at pcactuarial@tdi.texas.gov.  To view the bulletin, go to https://www.tdi.texas.gov/bulletins/index.html. 
• Issued Commissioner's Bulletin Number B-0014-19 regarding disallowed expensed data call for calendar year 2018 experience.  The Texas Department of Insurance (TDI) issues the attached mandatory data call under Insurance Code Chapter 2251, Subchapters A and B. This call collects information about "disallowed expenses," which are defined in Insurance Code Section 2251.002(1-a). This data call applies to licensed companies that wrote premium in 2018 for any of the following lines of insurance in Texas: fire, allied lines, private crop, farm owners’ multiple peril, homeowners’ multiple peril, commercial multiple peril, inland marine, medical malpractice, other general liability, product liability, private passenger automobile, commercial automobile, fidelity, or surety. You must complete and return this data in accordance with the general instructions no later than January 31, 2020. TDI requests you keep all underlying data, individual source documents, and any information used to develop your data call response for a minimum of two years after your submission to TDI.  To view the bulletin, go to https://www.tdi.texas.gov/bulletins/index.html. 

REGULATORY ACTIVITY:

• The department of Insurance has adopted amendments to rules regarding the licensing and regulation of insurance professionals.  The Texas Department of Insurance adopts amendments to 28 TAC §§801, 19.1003, 19.1004, 19.1010, 19.1013, 19.1016, 19.1019, 19.1310, and new §§19.803 - 19.810, concerning licensing and continuing education requirements of insurance professionals, including agents, adjusters, public insurance adjusters, managing general agents, risk managers, and home office salaried employees. The amendments and new sections are adopted with changes to the proposed text published in the March 9, 2018, issue of the Texas Register (43 TexReg 1391). TDI adopts amended §§19.1003, 19.1010, 19.1013, 19.1016, 19.1019, 19.1310, and new §§19.805 - 19.809 without changes to the proposed text. TDI revised §§19.801, 19.804, and 19.810 in response to public comments. TDI revised typographical errors in §19.803 and §19.1004.  The rules become effective May 31, 2018.  To view a copy of the adopted rules, go to  http://www.sos.state.tx.us/texreg/archive/May252018/Adopted%20Rules/28.INSURANCE.html#111.

REGULATORY ACTIVITY:

• The Texas Department of Insurance proposes amendments to 28 TAC §§801, 19.1003, 19.1004, 19.1013, 19.1016, 19.1019, and 19.1310, and new §§19.803 - 19.810, concerning licensing and continuing education requirements of insurance professionals, including agents, adjusters, public insurance adjusters, managing general agents, risk managers, and home office salaried employees. The amendments and new sections are necessary to implement Senate Bill 876, 84th Legislature, Regular Session (2015), which amends Insurance Code Title 13, relating to licensing and continuing education requirements; and SB 807, 84th Legislature, Regular Session (2015) and SB 1307, 84th Legislature, Regular Session (2015), which amend Occupations Code Chapter 55, relating to licensing of military service members, military veterans, and military spouses. Additionally, TDI has proposed amendments to §§19.801, 19.1003, 19.1004, 19.1013, 19.1016, 19.1019, and 19.1310 to reflect current TDI style guidelines. Amendments to §§19.801, 19.1003, 19.1004, 19.1013, 19.1016, 19.1019, and 19.1310, and new §§19.804 - 19.810 implement changes made by SB 876 to the licensing and continuing education requirements of insurance professionals, including agents, adjusters, public insurance adjusters, managing general agents, risk managers, and home office salaried employees. Amendments to existing §§19.801, 19.1003, 19.1004, 19.1013, 19.1016, 19.1019, and 19.1310 also modernize existing requirements, including allowing for increased use of electronic payment transactions. The amendments also update statutory references resulting from the non-substantive revision of statutes enacted in SB 1324, 78th Legislature, Regular Session (2003).
• New §19.803 implements changes made by SB 807 and SB 1307 to Occupations Code Chapter 55, relating to licensing of military service members, military veterans, and military spouses. In accordance with Chapter 55 of the Occupations Code, §19.803 provides for extensions of time to complete continuing education, reciprocal licensing, and waiver of the examination requirement. To view the proposed rule, go to http://www.sos.state.tx.us/texreg/archive/March92018/Proposed%20Rules/28.INSURANCE.html#65.

REGULATORY ACTIVITY:

• On November 16, 2017, in accordance with Insurance Code §2151.2022, the commissioner of insurance issued Commissioner's Order No. 2017-5289. The order approves changes in the rates for private passenger and commercial automobile insurance provided through the Texas Automobile Insurance Plan Association (TAIPA), which is the state's assigned risk plan. The changes are effective March 1, 2018.

REGULATORY ACTIVITY:

• Issued Commissioner's Bulletin B-0022-17 regarding the processing of claims from counties affected by the hurricane.
• Issued bulletin B-0024-17 regarding suspension of certain licensing requirements and fees for certain persons and entities living in the areas affected by the Harvey disaster.
• Issued bulletin B-0025-17 regarding Hurricane Harvey - Restricting New Business for Personal Auto and Residential Property Insurance.  Governor Greg Abbott issued a proclamation declaring a disaster due to the effects of Hurricane Harvey. The proclamation directs that all necessary measures, both public and private, as authorized under §418.017 of the Texas Government Code, be implemented to meet that threat. President Donald Trump issued a major disaster declaration and ordered federal aid to supplement state and local recovery efforts in the area affected by Hurricane Harvey. TDI reminds insurers that before they may restrict writing new business in response to a catastrophic natural event, they must file a restriction plan with TDI and obtain prior approval under Insurance Code §827.008. Insurers file restriction plans with the Company Licensing and Registration Office by email at CLRFilings@tdi.texas.gov. Insurers that do not comply with statutory requirements are subject to enforcement action.  Questions regarding this bulletin should be directed to the Company Licensing and Registration Office by calling 512-676-6375, or by email at CompanyLicense@tdi.texas.gov.
• Issued bulletin B-0026-17 regarding Hurricane Harvey Policy Renewal:  Governor Greg Abbott issued a proclamation declaring a disaster due to the effects of Hurricane Harvey. The proclamation directs that all necessary measures, both public and private, as authorized under §418.017 of the Texas Government Code, be implemented to meet that threat. President Donald Trump issued a major disaster declaration and ordered federal aid to supplement state and local recovery efforts in the area affected by Hurricane Harvey.  TDI reminds insurers of their obligations under Insurance Code Chapter 551:
• Under Insurance Code 551.107 when nonrenewing a standard fire, homeowners, or farm or ranch owner’s policy due to a policyholder filing three or more claims under a policy in any three-year period, insurers may not consider:
• • losses caused by natural causes;
  • claims filed but not paid or payable; or
  • claims history for water damage under Insurance Code §544.353.

• Insurers may not consider a customer inquiry as a basis for non-renewal under Insurance Code §551.113.
• All insurers should remember to comply with the requirements of Insurance Code Chapter 551 as applicable to the lines of coverage they write.
• In addition, insurers should remember that practices related to non-renewal are subject to restrictions against unfair discrimination under Insurance Code Chapter 544, Subchapters A and B.
• Insurers that do not comply with statutory requirements are subject to enforcement action.
• Questions regarding this bulletin should be directed to the Property and Casualty Lines Office by calling (512) 676-6710, or by email at CommercialPC@tdi.texas.gov.
• For more information contact: CommercialPC@tdi.texas.gov.
• The Commissioner has issued bulletin B-0027-17 regarding flood damaged vehicles.
• The Commissioner has issued bulletin B-0031-17 regarding hurricane Harvey - withdrawal of business for personal auto and residential property insurance.

REGULATORY ACTIVITY:

• Issued Bulletin Number B-0011-17 regarding Hurricane Harvey - Claims Adjusting and Adjusters.
• Issued Bulletin Number B-0013-17 regarding Hurricane Harvey - Commercial Automobile insurance.