28 TAC Chapter 5, Subchapter H (Cancellation, Denial, and Nonrenewal of Certain Property and Casualty Insurance Coverage), complete

What this document is

28 TAC Chapter 5, Subchapter H (Cancellation, Denial, and Nonrenewal of Certain Property and Casualty Insurance Coverage), complete: Divisions 1-2, Secs. 5.7001-5.7016, 5.7018 and 5.7101-5.7110 is a regulation published by Texas Secretary of State, Texas Administrative Code (texas-sos.appianportalsgov.com), rules of the Texas Department of Insurance. It is one of the Texas documents that insurance license exam questions are written from, including texas property & casualty, texas personal lines, texas claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 28 Tex. Admin. Code Sec. 5.7002(d) (Cancellations)

  “(d) An insurer may not date or send the notice of cancellation for nonpayment of premium until after the premium due date.”

• 28 Tex. Admin. Code Sec. 5.7006 (Discontinuing the writing of certain lines or classes, withdrawing from a geographical area, or withdrawing from an agency)

  “This section applies to all property and casualty insurance policies; it is not restricted to the types of policies specifically enumerated in §5.7001(a) of this title (relating to Applicability). No company may cancel any such policy if the decision to cancel is motivated to any extent whatsoever...”

• 28 Tex. Admin. Code Sec. 5.7013(b) (Notice requirements for cancellation and nonrenewal for general liability and certain automobile insurance policies)

  “(b) General liability insurance policies and automobile insurance policies to which this section applies must be renewed at expiration, at the option of the policyholder, unless the company has provided the written notice required by Insurance Code §551.054, concerning Written Notice of Nonrenewal...”

• 28 Tex. Admin. Code section 5.7016(a), (a)(1) (Prohibition of Nonrenewal for Not-at-Fault Accidents or Claims, Personal Auto Policy)

  “(a) None of the types of claims or accidents listed in paragraphs (1)-(4) of this subsection may be used by any insurer as the sole basis for a refusal to renew a personal auto policy: (1) claims involving damage from a weather-related incident that do not involve a collision, such as, but not...”

• 28 Tex. Admin. Code section 5.7012 (Reason for Declination, Cancellation, or Nonrenewal)

  “Insurers must provide to policyholders or applicants a written statement of the reason or reasons for the declination, cancellation, or nonrenewal of any policy regulated by TDI, upon request by the policyholder or applicant.”

• 28 Tex. Admin. Code Sec. 5.7015(b) (Refund of Unearned Premium; effective date of cancellation or termination)

  “(b) For purposes of this section and Insurance Code §558.002(d), the "effective date of cancellation or termination" means the date the insurer receives notice of the cancellation or termination, or the date of the cancellation or termination, whichever is later. This does not change the actual...”

• 28 Tex. Admin. Code § 5.7016(a) (Prohibition of Nonrenewal for Not-at-Fault Accidents or Claims, Personal Auto Policy)

  “(a) None of the types of claims or accidents listed in paragraphs (1)-(4) of this subsection may be used by any insurer as the sole basis for a refusal to renew a personal auto policy: (1) claims involving damage from a weather-related incident that do not involve a collision, such as, but not...”

• 28 Tex. Admin. Code § 5.7015 (Refund of Unearned Premium)

  “(a) Insurers must refund any unearned premium to the policyholder not later than the 15th business day after the effective date of cancellation or termination of a personal automobile or residential property insurance policy, as required by Insurance Code §558.002(d), concerning Applicability of...”

• 28 Tex. Admin. Code § 5.7011 (Violations)

  “In addition to all other remedies provided by law, any policy cancellation or restriction of coverage made in violation of this subchapter is deemed to be null and void and of no effect. Policies on which notice of nonrenewal is not given as required by this division must be renewed at the request of the insured.”

• 28 Tex. Admin. Code § 5.7004 (Certain Acts Regarded as Cancellation)

  “Any company that declines to recognize or put into effect additional coverage to which an insured is entitled under the provisions of an existing policy, or that attempts to reduce or restrict coverage under the provisions of an existing policy by endorsements or by any other means, is in violation...”

• 28 Tex. Admin. Code § 5.7018(a), (b) (Notice to Lienholders)

  “(a) For a personal automobile policy that includes comprehensive or collision physical damage coverage for an automobile that is subject to a purchase money lien, insurers must give written notice to the lienholder, if known, at least 10 days before the insurer: (1) cancels coverage; or (2)...”

• 28 Tex. Admin. Code § 5.7005(b), (c) (Special One-Year Rule Applicable Only to Personal Automobile Policies)

  “(b) Cancellation or nonrenewal. An insurer may cancel or nonrenew personal automobile policies for any legal reason, if the purpose is to terminate coverage concurrently with the expiration of any annual period, beginning with the original effective date of the policy. The prohibition in §5.7002 of...”

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