Section 21.1005 - Prohibition of Underwriting Guidelines Based on the Purchase of Types or Amounts of Coverage in Excess of Minimum Limits Liability Coverage(a) Prohibition. Effective September 1, 1995, an insurer or agent may not use an underwriting guideline for private passenger automobile insurance based, in whole or in part, on whether an insured or applicant purchases types or amounts of coverage in excess of the minimum automobile liability coverage required to show proof of financial responsibility under the Motor Vehicle Safety Responsibility Act, Transportation Code, Chapter 601. The failure to comply with this section constitutes an unfair trade practice in the business of insurance in violation of Insurance Code Chapter 541, and is subject to the provisions thereof.(b) Definition of "Underwriting Guideline." For the purposes of this rule, an "underwriting guideline" is a rule, standard, marketing decision, guideline, or practice, whether written, oral or electronic, used by an insurer or its agent to examine, bind, accept, reject, renew, non-renew, cancel or limit coverages made available to classes of consumers.(c) Definition of "Private Passenger Automobile Insurance." For the purposes of this rule, "private passenger automobile insurance" is the insurance for which a personal auto policy is issued.28 Tex. Admin. Code § 21.1005
The provisions of this §21.1005 adopted to be effective February 9, 1995, 20 TexReg 478; amended to be effective September 1, 1995, 20 TexReg 3719; Amended by Texas Register, Volume 46, Number 44, October 29, 2021, TexReg 7416, eff. 11/7/2021