Texas Register, Volume 44, Number 18, Pages 2199-2322, May 3, 2019 Page: 2,268
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(4) Insurer--An insurance company, reciprocal or interin-
surance exchange, mutual, capital stock company, county mutual insur-
ance company, farm mutual insurance company, association, Lloyd's
plan company, or other entity writing residential property insurance in
this state. The term includes an affiliate as described by Insurance Code
823.003 if that affiliate is authorized to write and is writing residen-
tial property insurance in Texas. The term does not include the Texas
Windstorm Insurance Association, the FAIR Plan, or an eligible sur-
plus lines insurer regulated under Insurance Code Chapter 981.
(5) Residential property insurance--Insurance against loss
to residential real property at a fixed location or tangible personal prop-
erty provided in a homeowners policy, including a tenant policy, a con-
dominium owners policy, or a residential fire and allied lines policy.
(6) Underwriting guideline--A rule, standard, guideline, or
practice, whether written, oral, or electronic, that is used by an insurer
or an agent of an insurer to decide to accept or reject an application for
a residential property insurance policy or to determine how to classify
risks that are accepted for the purpose of determining a rate.
(7) Water damage claim--A claim for a loss arising from
the discharge or leakage of water or steam that is the direct result of
the failure of a plumbing system or other system that contains water or
steam.
(c) Water damage claims - underwriting. An insurer may not
use an underwriting guideline based solely on a single previous water
damage claim either filed by the applicant or on the covered property.
This subsection does not affect the surcharge and renewal provisions
in Insurance Code 551.107 (concerning Renewal of Certain Policies;
Premium Surcharge Authorized; Notice).
(d) This subsection contains provisions related to underwriting
and rating based on a previous appliance-related claim.
(1) Except as provided in Insurance Code 544.353(e)
(concerning Restrictions on Use of Claims History for Water Dam-
age) an insurer must not use a previous appliance-related claim as
a basis for determining a rate to be paid or for determining whether
to issue, renew, or cancel a residential property insurance policy
if the consumer complies with the requirements in Insurance Code
544.353(c) and 544.353(d). It is the consumer's option whether
to have the appliance-related claim inspected and certified. The
consumer is responsible for the cost of the inspection and certification.
An appliance-related claim that is not inspected and certified is subject
to subsection (c) of this section.
(2) Nothing in this subsection exempts an insurer from the
notice provisions in Insurance Code 551.107(e). However, appliance-
related losses are a special class of non-weather-related losses. The
notice must be specific to the insured's appliance-related loss history.
(3) The following individuals are inspectors that may have
the knowledge and experience in water damage remediation to inspect
and certify the proper remediation of an appliance-related claim:
(A) inspectors licensed or certified through the Volun-
tary Inspection Program under Insurance Code Chapter 2003, Subchap-
ter C;
(B) persons licensed to perform real estate property in-
spections under the Real Estate Licensing Act;
(C) persons licensed as mold assessment consultants or
mold remediation contractors by the Department of Licensing and Reg-
ulation under Occupations Code Chapter 1958;
(D) engineers licensed by the Texas Board of Profes-
sional Engineers; and(E) persons authorized by an insurer to perform appli-
ance-related water damage remediation inspections.
(4) An insurer that maintains a list of authorized inspectors
must give verbal and written notice that a claimant has the right to
choose an inspector. The inspector does not have to be on the insurer's
list. The insurer must give verbal notice when the claimant calls to
report the claim. The insurer must send written notice within 15 days
after the insurer receives notice of the claim.
(5) If a consumer uses an inspector from an insurer's list,
the insurer may not reject or challenge the certification. If the con-
sumer uses an inspector who is not on the insurer's list, the insurer may
reject or challenge the certification by reinspecting the property. The
insurer must give the consumer a list of all reasons it will not accept
the certification. The insurer must keep all documentation of the rein-
spection.
(6) If an inspector physically inspects the property and de-
termines that the appliance-related water damage was properly remedi-
ated, the inspector must issue a water damage repair certificate (PC327
WDR-1) within 10 days of completing the inspection.
(7) Water damage repair certificate form (PC327 WDR-1).
An inspector must use the water damage repair certificate form (PC327
WDR-1) found on TDI's website at www.tdi.texas.gov, or by request-
ing the form from the Property and Casualty Lines Office, MC 104-
PC, Texas Department of Insurance, P.O. Box 149104, Austin, Texas,
78714-9104. TDI adopts by reference the water damage repair certifi-
cate form (PC327 WDR1) that an inspector must use, subject to the
provisions of this subchapter and Insurance Code Chapter 544. Per-
sons using the form should confirm that they are using the most recent
online version before giving a copy to the property owner.
(8) TDI has information about inspectors who may have
the knowledge and experience in water damage remediation to inspect
and certify the proper remediation of an appliance-related claim. A list
of inspectors can be obtained from TDI's website or by requesting it
from the TDI Property and Casualty Lines Office.
(e) This subsection contains provisions related to underwriting
based on previous mold damage or a previous mold damage claim.
(1) An insurer may not use an underwriting guideline based
on previous mold damage or a previous mold damage claim filed by the
applicant or on the covered property if:
(A) the property is eligible for residential property in-
surance coverage;
(B) the property had mold damage;
(C) mold remediation was performed on the property;
and
(D) the property was:
(i) remediated in accordance with the requirements
in Occupations Code Chapter 1958, Subchapter D and any applicable
rules adopted by the Department of Licensing and Regulation, and in-
spected by a licensed mold assessment consultant; and a mold dam-
age remediation certificate (PC326 MDR-1) was issued to the property
owner under Occupations Code @1958.154, certifying with reasonable
certainty that the underlying cause or causes of the mold at the property
were remediated; or
(ii) inspected by a licensed, independent mold as-
sessment consultant or a licensed adjuster; and a mold damage reme-
diation certificate (PC326 MDR-1) was issued to the property owner
under Occupations Code 1958.154, certifying that, based on the mold44 TexReg 2268 May 3, 2019 Texas Register
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Texas. Secretary of State. Texas Register, Volume 44, Number 18, Pages 2199-2322, May 3, 2019, periodical, May 3, 2019; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1157368/m1/70/: accessed June 13, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.