In Texas, what must insurers do to policyholders regarding terrorism charges?

• A. List no terrorism charge separately
• B. State the estimated portion of the premium charged for acts of terrorism
• C. Include terrorism in the base premium without disclosure
• D. Refund terrorism charges upon request

Answer: (B)

In Texas, insurers must disclose to policyholders the portion of the premium that is charged for acts of terrorism. This must be stated as the estimated amount attributable to terrorism, usually shown as a separate line item or clearly noted in the premium disclosure. This transparency helps consumers understand exactly how much of their premium goes toward terrorism coverage.

So the best answer is the one that states the estimated portion of the premium charged for acts of terrorism. The other options conflict with this requirement: terrorism charges aren’t hidden in the base premium without disclosure, there isn’t a standard policy to refund terrorism charges merely on request, and there must be a separate disclosure rather than no separate line item.