Has the Texas Department of Insurance done anything to minimize “rate shock” for communities that benefited from fringing under the key rate system?
Return to Index Yes, when Commissioner Bomer set the benchmark rates that took effect February 1, 1998, he capped homeowners insurance benchmark rate changes attributable solely to the switch to PPC at ±1O percent for the first year and ±21 percent for the second year. Renters insurance rate changes were capped at ±20 percent the fiat year and ±44 percent the second year. This, in effect, gives local governments and volunteer fire departments in fringed areas until the year 2000 to make improvements and be inspected by ISO. In addition, TDI negotiated ISO’s agreement to improve from 9 to 7 the temporary ratings of 72 formerly fringed communities that returned ISO’s questionnaires but had not been inspected as of March 1, 1998. As a result, in these communities, rates for brick veneer houses will be 6.5 percent lower and rates for frame houses will be 29 percent lower than they would have been.
Related Questions
- Has the Texas Department of Insurance done anything to minimize "rate shock" for communities that benefited from fringing under the key rate system?
- Are SERFF (System for Electronic Rate & Form Filings) documents from the Texas Department of Insurance (TDI) acceptable?
- Are SERFF (System for Electronic Rate & Form Filing) documents from the Texas Department of Insurance (TDI) acceptable?
