T-19.2 Guideline - Minerals and Surface Damage Endorsement

Underwriting Requirements:

The basic guidelines for these endorsement forms are found in Procedural Rule P-50.1.

P-50.1. Minerals and Surface Damage Endorsement (Form T-19.2), and Minerals and Surface Damage Endorsement (Form T-19.3)

Please also see R-29.1 for more information regarding this endorsement.

Any insured matter covered in the Minerals and Surface Damage Endorsement Form T-19.2 or Form T-19.3 may be insured only by the use of these endorsements, except that coverage regarding minerals may be insured by the use of the Form T-19 or Form T-19.1 endorsements as provided in P-50. When the policy includes an exclusion or an exception regarding minerals as provided in Procedural Rule P-50.1:

As to real property of one acre or less improved or intended to be improved for one-to-four family residential use, the Company upon request by the insured and if it meets the Company's underwriting standards may issue its Minerals and Surface Damage Endorsement (Form T-19.2) to an Owner’s or Loan Policy.

As to real property improved or intended to be improved for office, industrial, retail, mixed use retail/residential, or multifamily purposes, the Company upon request by the insured and if it meets the Company's underwriting standards may issue its Minerals and Surface Damage Endorsement (Form T-19.2) to an Owner's or Loan Policy.

As to other real property, the Company upon request by the insured and if it meets the Company's underwriting standards may issue its Minerals and Surface Damage Endorsement (Form T-19.3) to an Owner's or Loan Policy.

As to an Owner's or Loan Policy covering multiple parcels of real property that consist of a combination of real property described in paragraphs 1 or 2, and 3, the Company upon request by the insured and if it meets the Company's underwriting standards may issue for each parcel the applicable Minerals and Surface Damage Endorsement (Form T-19.2 or Form T-19.3) to the Owner's or Loan Policy.

If Paragraph 4(d) is deleted as to minerals in the T-19 or T-19.1, then you cannot issue the T-19.2 or T-19.3 without senior underwriter approval.

For further guidance, refer to the applicable subsections in Section 11.04 of the National Underwriting Manual on Virtual Underwriter http://www.vuwriter.com/vumanuals.jsp?displaykey=UM00000208

Please see the following Texas Bulletins:

TX2015002 - UNDERWRITING - HB 40 By Darby Relating to Exclusive Jurisdiction of the State to Regulate Oil and Gas Operations and Express Preemption of Local Regulations of These Operations (Effective May 18, 2015) 

TX2014006 - RATES AND/OR FORMS UPDATE - T-19 Series Endorsements (T-19.1 for Owner’s Policies and T-19 for Loan Policies after 2014 Revisions)

TX2012006 Mineral Exception

TX2012001 - T-19.2 and T-19.3 and Mineral Credits

TX2011001 - Writing Mineral Coverage after Commissioner's Order 10-0959 Order in 2008 Rate Case 

TX2009007 - Oil and Gas and Other Minerals Supplement 

TX2009005 - Resolution of Mineral Exception Issue; Commissioner's Order 09-0650

TX2024008 RATES AND/OR FORMS UPDATE - New Forms, Rules, and other amendments; Texas Department of Insurance Commissioner’s Order 2024

Additionally, see the Texas Underwriting Manual 12.16 Mineral Rights on Virtual Underwriter.