Advisory Pricing Information Now Offered In Texas
NU Online News Service, Sept. 11, 1 :54 p.m. EDT? Insurance Services Office said a new Texas law now permits ISO and other advisory companies to offer the state's insurers loss-costs rules and standardized forms information on four lines: commercial and personal auto, homeowners, and dwelling fire.
Until the new law was signed last June by Gov. Rick Perry, Texas prohibited insurance companies from using advisory organizations' loss-costs information on personal auto, homeowners and dwelling fire, explained Dave Dasgupta, spokesman for the Jersey City, N.J.-based ISO.
Previously, Texas also restricted rates, rules and policy forms insurers could use in the regulated market for homeowners, dwelling, personal auto and commercial auto insurance.
But the passage of this new legislation, Mr. Dasgupta noted, brings the Texas insurance market in line with the rest of the country, and the advisory organizations can now provide insurers the full portfolio of multistate products, including loss costs, rules and policy forms for these lines of insurance. The legislative change also allows insurers to use their multistate programs more easily in Texas.
Mr. Dasgupta said ISO will host two seminars in Texas next month to review the impact of the new legislation on the Texas insurance market.
"The new legislation streamlines the way insurers do business in Texas," added Kevin Thompson, senior vice president at ISO. "Instead of maintaining a separate Texas-specific company program, insurers can now use the ISO multistate program, making their in-state operations easier and more efficient," Mr. Thompson said.
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