What it does
IL 01 68 adds to the Duties condition of Texas liability coverage parts. These include Commercial General Liability, Commercial Auto, Farm, Liquor, Medical Professional, Owners and Contractors Protective, Pollution, Products/Completed Operations and Railroad Protective. The insurer must notify the first Named Insured in writing of:
- An initial offer to settle a claim or suit against any insured, no later than the 10th day after the offer is made.
- Any settlement of a claim or suit against an insured, no later than the 30th day after the settlement.
Why it matters
Settlements affect loss history, experience rating and deductible or self-insured retention reimbursement. The notice requirement keeps Texas insureds informed about claims being resolved on their policies.
Quoting and selling notes
- Expect it on Texas liability policies, together with the Texas cancellation endorsement IL 02 75.
- Insureds with deductible programs should watch for these notices, since they trigger reimbursement obligations.
