Q. We have a carrier that is making a charge on a homeowners policy for “Recoupment Fee Volunteer Rural Fire Department Assistance Program.” What is this charge?
A. Section 2007.001 of the Texas Insurance Code provides for an assessment for rural fire protection which is applicable to an insurer that writes homeowners, fire, farm and ranch, private passenger physical damage, commercial auto physical damage and commercial multi-peril insurance.
An insurer may recover the assessment by reflecting the assessment as an expense in a rate filing or charging the policyholder. If the policyholder is being charged, the insurer has to provide a notice regarding the amount of the assessment being recovered. The notice may be included on the declarations page, renewal certificate or billing statement.