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Real property

property and casualty insurance

Property insurance and casualty insurance (also known as P&C insurance) are two broad categories of insurance coverage that are included in various insurance policies. In other words, there is no one P&C insurance policy—rather, there are a number of insurance policies that contain both property insurance and casualty insurance.

Property insurance insures against damage to your property—such as your home or your car. Casualty insurance insures against liability if someone claims you are responsible for causing bodily injury to them or their property—often based on your alleged negligence.

Property and casualty insurance are generally bundled together in one insurance policy such as:

• a homeowners insurance policy

• an automobile insurance policy

• a renters insurance policy

• landlord insurance

• condominium (condo) insurance

• powersports insurance (motorcycles, ATVs, RVs, off-road vehicles, boats)

Property and casualty insurance will defend you against such claims and pay settlements and court judgments against you that are covered by your insurance policy—including medical expenses, pain and suffering, and lost income for a person injured by your negligence.

In Texas, property and casualty insurance (P&C insurance) are regulated by the Texas Department of Insurance (TDI). These types of insurance cover a range of policies that protect individuals and businesses against loss of property, damage, or other liabilities. Property insurance covers the financial cost of repairing or replacing physical assets, such as homes, cars, and personal possessions, in the event of damage from causes like fire, theft, or natural disasters. Casualty insurance, on the other hand, provides liability coverage to protect against being held responsible for injuries to others or damage to their property, typically arising from accidents or negligence. Policies that commonly bundle property and casualty insurance in Texas include homeowners, auto, renters, landlord, condo, and powersports insurance. These policies not only cover the cost of damages but also provide legal defense and may cover settlements or court judgments up to the limits of the policy. It's important for policyholders to understand the terms, conditions, and exclusions of their insurance contracts, and they may consult with an attorney for legal advice specific to their situation.


Texas Statutes & Rules

Federal Statutes & Rules

McCarran-Ferguson Act (15 U.S.C. §§ 1011-1015)
This federal statute is relevant because it provides the framework for the regulation of insurance companies by state governments, which directly affects property and casualty insurance policies.

The McCarran-Ferguson Act, passed in 1945, declares that states should regulate the business of insurance and that federal antitrust laws should not apply to the insurance industry unless insurance is not regulated by state law. This act essentially gives states the primary authority to regulate and tax the business of insurance, including property and casualty insurance. The act also provides that federal legislation that does not specifically relate to the business of insurance does not preempt state laws or regulations that pertain to the business of insurance.

Gramm-Leach-Bliley Act (GLBA) (15 U.S.C. §§ 6801-6827)
This federal statute is relevant to property and casualty insurance because it governs the collection, disclosure, and protection of consumers' nonpublic personal information by financial institutions, which include insurance providers.

The Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act of 1999, requires financial institutions, which include insurance companies, to explain their information-sharing practices to their customers and to safeguard sensitive data. The act consists of three main sections: the Financial Privacy Rule, which governs the collection and disclosure of private financial information; the Safeguards Rule, which stipulates that financial institutions must implement security programs to protect such information; and the Pretexting Provisions, which prohibit the practice of pretexting (accessing private information using false pretenses). This act is particularly relevant to property and casualty insurance companies as they handle significant amounts of personal and financial data.

Fair Credit Reporting Act (FCRA) (15 U.S.C. § 1681)
This federal statute is relevant to property and casualty insurance because insurers often use credit information to determine insurance premiums and eligibility for coverage.

The Fair Credit Reporting Act is a federal law that regulates the collection, dissemination, and use of consumer information, including credit information. Under FCRA, consumers have the right to know what information is in their file, have access to their credit report, and dispute incomplete or inaccurate information. Insurers who use credit information for underwriting or rating must comply with FCRA, which includes providing notices to consumers when adverse actions are taken based on their credit information. This act ensures that personal information is reported accurately and used fairly by insurers offering property and casualty insurance.

Terrorism Risk Insurance Act (TRIA) (15 U.S.C. §§ 6701 note)
This federal statute is relevant to property and casualty insurance as it provides a federal backstop for insurance claims related to acts of terrorism.

The Terrorism Risk Insurance Act was enacted in response to the inability of insurance companies to underwrite risks associated with terrorism following the September 11, 2001 attacks. TRIA created a federal 'backstop' for insurance claims related to acts of terrorism, which is designed to ensure that adequate resources are available for businesses to recover and rebuild if they are the victims of a terrorist attack. The act requires insurers to offer terrorism risk insurance with the understanding that the federal government will share the losses in excess of certain thresholds. This partnership helps to stabilize the market for property and casualty insurance in the face of terrorism risks.