ICT's annual Texas Workers' Compensation Market Report for 2022-2023 reveals a thriving workers' compensation market in the state. With a stable regulatory environment, positive outcomes for injured workers, reasonable employer rates, and ample healthcare providers, the system remains strong. Additionally, the report covers the impact of COVID-19, updates on healthcare networks, Division of Workers' Compensation activities, and recent legislation that may impact the WC system in Texas.

To view the full report visit, ictworkerscompreport.org

A growing number of extreme weather events in Texas has made insurers in Dallas-Fort Worth more cautious about providing coverage to homes in the region.

Insurers have started pulling out of the high-risk states of Florida and California due to climate risks. While there are no clear signs that insurers will pull out of Texas entirely, homeowners and buyers are facing challenges in getting coverage that real estate industry veterans say are unusual compared to previous years.

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DWC requests comments on an informal working draft of amendments to 28 Texas Administrative Code Chapter 166 to improve the process insurance companies use to submit information on their accident prevention services to DWC.

More on the TDI website.

The Texas Department of Insurance (TDI) has issued the annual experience and workers' compensation deductible plans data call. Insurance companies licensed to write certain property and casualty lines of insurance in Texas must submit the required data by February 2, 2024. The data will be used for a report on market conditions that must be provided to state leaders by April 1, 2024.

View Bulletin # B-0014-23 for the form and instructions.

The Texas Windstorm Insurance Association (TWIA) expects policy count to continue to grow in 2024, the association’s Board of Directors said at an Oct. 31 meeting to review information related to the 2024 budget.

Policies in-force are projected to increase in 2024 to nearly 265,000 by year end, while direct written premiums are projected to grow to more than $815 million.

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On Nov. 6, ICT in collaboration with AFACT, submitted comments to TDI regarding proposed rules on mandatory non-renewal of private passenger auto insurance. 

TDI proposed amendments to 28 TAC Chapter 5 Subchapter H, §§5.7005, 5.7007, 5.7011, 5.7012, and 5.7013, and to adopt new §§5.7101 - 5.7110. The proposed amendments implement SB 1602 (87th legislature) and HB 2065 (88th legislature) relating to mandatory non-renewal of a private passenger automobile insurance policy for failure to cooperate; and HB 1900 (88th legislature), which changed the notice requirement time frames for nonrenewal and cancellation of private passenger automobile policies from 30 to 60 days. 

The proposal divided Subchapter H into two new divisions: Division 1 (Miscellaneous) and Division 2 (Mandatory Non-renewal of Private Passenger Automobile Insurance Policies). 

ICT and AFACT's comments outlined concerns over certain key provisions in Division 2 as proposed. These included general comments that the proposed rules exceeded statutory authority, concern with the definition of notice, as well as the timing and content of the notice. Due to the potential impact these proposed rules may have, ICT and AFACT also requested a public hearing before TDI adopts the proposed rules. 

You can find these comments in ICT's Info Hub.

The Texas Department Insurance (“TDI”) Commissioner Cassie Brown issued an order decreasing the surplus lines stamping fee from .075% to .04% of gross premium resulting from surplus lines insurance contracts. The decrease will apply to new or renewal surplus lines policies with an effective date on or after January 1, 2024.

Guidance from the Surplus Lines Stamping Office of Texas (“SLTX”) states that the new stamping fee rate will apply to each new or renewal surplus lines policy with an effective date on or after January 1, 2024. 

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More than half of the U.S. and parts of Canada, home to around 180 million people, could fall short of electricity during extreme cold again this winter due to lacking natural gas infrastructure, the North American Electric Reliability Corp (NERC) said on Wednesday.

In its 2023-24 winter outlook, the regulatory authority warned that prolonged, wide-area cold snaps threaten the reliability of bulk power generation and availability of fuel supplies for natural gas-fired generation.

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Matching requirements are a huge issue in insurance. When only part of the covered property is damaged, such as some of the tiles of a roof–and matching replacement tiles cannot be found, should the entire roof be replaced, or can the insurer repair only the damaged part of the roof using mismatched tiles? 

Florida is one of a few states with a matching statute codified in their law. Florida Statutes Chapter 626, Section 9744 states:

“Unless otherwise provided by the policy, when a homeowner’s insurance policy provides for the adjustment and settlement of first-party losses based on repair or replacement cost, the following requirements apply: 

(2) When a loss requires replacement of items and the replaced items do not match in quality, color, or size, the insurer shall make reasonable repairs or replacement of items in adjoining areas. In determining the extent of the repairs or replacement of items in adjoining areas, the insurer may consider the cost of repairing or replacing the undamaged portions of the property, the degree of uniformity that can be achieved without such cost, the remaining useful life of the undamaged portion, and other relevant factors.” 

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