Notice of Material Change-Applicability and Examples

(a) A notice of material change is not a notice of cancellation or nonrenewal. Instead, it is a notice provided under:

(1) Insurance Code §551.1055;

(2) Insurance Code §2002.001; or

(3) Insurance Code §2002.102.

(b) This section, §5.9751 and §5.9752 of this title (relating to Notice of Material Change-Requirements and Notice of Material Change-Change from Replacement Cost to Actual Cash Value) apply to policies and insurers that are subject to Insurance Code Chapter 551, Subchapter C; and Chapter 2002.

(c) Examples of material changes include:

(1) changes from replacement cost to actual cash value;

(2) reductions in policy limits;

(3) increases in deductibles; or

(4) reductions in coverage, including:

(A) limiting the people or entities insured under the policy;

(B) removing an item or act that was previously covered under the policy; or

(C) limiting the types of coverage under the policy.

Source Note: The provisions of this §5.9750 adopted to be effective February 12, 2020, 45 TexReg 909.