Texas General Lines — Property and CasualtyTexas Laws and RegulationsHard
An insurance company licensed in Texas has decided to withdraw from writing all personal lines property insurance in the state. What is the minimum number of days' notice the insurer must provide to the Commissioner of Insurance before implementing this withdrawal?
- A120 days
- B90 days
- C30 days
- D60 days
Show answer & explanationAnswer & explanation
Correct answer: B. 90 days
When an insurer plans a mass non-renewal or withdrawal from a line of business in Texas, they must provide the Commissioner of Insurance with at least 90 days' advance written notice. This allows the Department of Insurance to monitor market stability and assist affected policyholders.
Why the other options are wrong
- A. 120 days is longer than the statutory minimum requirement.
- C. 30 days is typically for individual policy non-renewals or certain cancellations, not a full market withdrawal.
- D. 60 days is often associated with non-renewal notices to individual policyholders for some policy types, but not for a full company withdrawal.
Insurer Withdrawal Notice (Texas)
The minimum advance notice an insurer must provide to the Texas Commissioner of Insurance when withdrawing from a line of business or conducting a mass non-renewal.
- Applies to withdrawal from a market segment, not individual policies.
- Allows the TDI to manage market impact.
- Failure to comply can result in penalties.
Memory trick: Withdrawals need ample notice, so the market doesn't feel the shock.