TX| The Texas Department of Insurance (TDI) issued guidance in response to the Hill Country flooding disaster, outlining expectations for insurers, HMOs, agents, and adjusters to support affected policyholders and ensure fair treatment during recovery efforts. Bulletin #B-0007-25 emphasizes cooperation, consumer education, flexibility in policy administration, and adherence to state laws regarding claims and renewals.
Key Points:
- Insurers should inform policyholders about FEMA assistance, disaster loans, and National Flood Insurance Program reporting requirements, including providing relevant contact information.
- Titles for vehicles damaged exclusively by flood must be properly labeled as “FLOOD DAMAGE,” and insurers must ensure accuracy in vehicle identification and title information.
- Insurers are expected to suspend vacancy provisions and provide grace periods for premium payments for those displaced, without forgiving premiums, and to minimize penalties for late payments.
- Claims adjusting can involve nonresident and emergency adjusters, but all public adjusters must be licensed, and strict rules govern advertising and solicitation during disasters.
- Insurers must avoid unfair claim settlement practices, follow legal requirements for nonrenewal, and seek TDI approval before restricting new business in affected areas; special provisions apply for medical services and prescription refills.