An insurer must follow the commissioner’s rules for water-damage underwriting guidelines, file those guidelines with the department, and may not use certain prior appliance-related claims against a person or property unless the subsection (e) exception applies.
Sec. 544.353. RESTRICTIONS ON USE OF CLAIMS HISTORY FOR WATER DAMAGE. (a) Underwriting guidelines relating to a water damage claim or claims used by an insurer shall be governed by rules adopted by the commissioner in accordance with the purpose of this subchapter. An insurer may not use an underwriting guideline relating to a water damage claim or claims that is not in accordance with the rules adopted by the commissioner under this subchapter. (b) An insurer shall file with the department its underwriting guidelines relating to a water damage claim or claims in accordance with the rules adopted by the commissioner. (c) Except as provided by Subsection (e), an insurer may not use a prior appliance-related claim filed by a person as a basis for determining the rate to be paid by the person for insurance coverage or for determining whether to issue, renew, or cancel an insurance policy to or for the person if the person: (1) properly remediated the prior appliance-related claim; and (2) had the remediation inspected and certified by a person or entity knowledgeable and experienced in the remediation of water damage. (d) Except as provided by Subsection (e), an insurer may not use a prior appliance-related claim filed regarding specific property as a basis for determining the rate to be paid by a person for insurance coverage for that property or for determining whether to issue, renew, or cancel an insurance policy to or for a person seeking insurance coverage for that property if the prior appliance-related claim was properly remediated and was inspected and certified by a person knowledgeable and experienced in remediation of water damage. (e) Subsections (c) and (d) do not apply to: (1) a person who has made and has received payment for three or more appliance-related claims within a three-year period; or (2) specific property that has been the subject of three or more appliance-related claims within a three-year period. Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.015(a), eff. September 1, 2005.