The Texas Department of Insurance Says It Discovered, Through Review of a Consumer Complaint, That a Data Loading Error Resulted in an Insurer Charging Rates Different Than Those on File

An order of the Texas Commissioner of Insurance, Official Order No. 2026-10013, dated July 8, 2026, is a consent order with an insurer that holds a certificate of authority to transact business in Texas. Under the order, the insurer agreed to pay an administrative penalty of $60,000 and restitution, with interest, to the affected policyholders. Parts of the order follow, not the whole.

Found Through a Complaint

"Through review of a consumer complaint," the order says, "the department discovered that a data loading error resulted in" the insurer "charging rates different than those on file."

The department received a complaint in July 2025 related to the insurer's rating of a homeowners renewal policy. In response, the insurer reported to the department that a rating issue affected certain renewal policies. The affected policies, the order says, renewed at an incorrect rate.

The insurer, the order says, represents that it completed a comprehensive review and determined that "a data translation error for insurance scores caused certain renewal policies to be charged a rate different than that on file with the department." The error affected certain homeowner policies renewed between April 1, 2024, and January 22, 2026, and over 1,100 Texas policyholders. It resulted in both overcharges and undercharges.

The Insurer's Representations, and What the Order Requires

The insurer represents, the order says, that upon discovering the data loading error through the complaint, it proactively initiated a broader internal investigation "beyond the scope of the individual complaint to determine whether additional policyholders were affected by the error." It also represents that it began a restitution program to identify and refund overcharged policyholders, undertaken voluntarily before the order.

The order concludes that the insurer violated a section of the Texas Insurance Code "by charging rates different than those on file with the department." It requires the insurer to identify all homeowners policies issued or renewed in Texas in the review period, and, for each, to "calculate the corrected premium using the correct insurance score inputs." Where the premium charged was higher, the difference is an overcharge, and restitution by company check or account credit must include it plus simple interest; the insurer must mail the checks or issue the credits on or before August 1, 2026. On or before October 1, 2026, the insurer must report the restitution paid to the department in a sortable electronic spreadsheet.