Extension of Term and Additional Premium

(a) If the insurer makes the decision that the insured failed or refused to cooperate when there are less than 17 days before the end of the policy term, one way the insurer may comply with §5.7104 and §5.7105(b) of this division (relating to Notice Timing, and Prohibited Nonrenewal and Cooperation Timeframe, respectively) is to extend the policy term. Extending the policy term gives the insurer time to send the Notice to the named insured within seven days and also gives the insured at least 10 days to cooperate.

(b) An insurer may charge additional premium for any extended term on a pro rata basis, based on the premium for the expiring term.

Source Note: The provisions of this §5.7106 adopted to be effective January 1, 2025, 49 TexReg 2533.