Texas Insurance (TX)

Texas Auto Insurance
As per the law in Texas, people driving motor vehicles are required to carry a liability Insurance. This liability Insurance takes the form of Property Damage Coverage and Bodily Injury Coverage. In those conditions, in which the driver is under a lien, the lender is required to have a Collision and Comprehensive Coverage. There is a minimum coverage, in Texas that is applicable for Bodily Injury Liability Coverage. As per the law in Texas, this rate is $ 20,000 for every person who is injured in an accident and, $ 40000 for all people injured in an accident. In case of Property Damage, the minimum coverage is $15000.

Optional Insurance includes the following:

• The Insurance for Collision Coverage usually takes responsibility, for repairing and replacing of vehicles, without taking into consideration the nature of the fault. However there is a limit, to the amount that can be paid.
• Comprehensive coverage usually pays for all kinds of accidents, except that which is caused by collision. There may be cases of natural calamities or even thefts, which are covered by this coverage.
• In case of Uninsured and Underinsured Motorist Coverage, there will be payment of medical bills of pains and sufferings, and also payment on condition of partial disability. In case it deals with property damage, there may be payments for repairs and rentals of cars, which are involved in accidents, but subject to a certain deductible amount.

Texas Department of Insurance -- Mike Geelin, Commissioner
The history of Insurance Law in Texas dates back to 1976, when the Constitution of Texas, authorized the creation of an office of the Insurance Commissioner. There was an effort made in the earlier years, to make a proper regulation of the Insurance business in Texas. It was necessary as the population of the state was growing, and many Insurance schemes were being formed. A law was passed, in the year 1874 that helped to make a regulation of the life and health Insurance business.

The insurance industry of Texas is regulated by The Texas Department of Insurance (TDI), where they strive to make insurance available and at affordable rates to people. They inform and educate the customers on various aspects of Insurance policies and how to choose them. They have a telephone guide, along with other informatory booklets, so that assistance can be provided at the website.

The law of Texas makes it mandatory for all those having an insurance business, to have a proper license before making sales of their products and services. License is provided to different health Insurance companies, health administrators and other premium finance companies, which are involved in the business of Insurance in Texas. The department of Insurance is also involved in issuing different rules and regulations, helps in the enforcing of Insurance Code, and is also involved in taking action against any company or any misconduct made by any agent.

It is very important to see that the Insurance Companies have adequate funds in order to pay claims and expenses. It is the task of the Texas Department of Insurance, to examine the financial status of the company, after which it can issue the standards for solvency. The department issues periodicals, in which we shall find the profiles of the company, along with complaint records, and related information, which is useful for users. Those who desire to receive copies of the documents can contact the consumer help line number.

Other Activities of the Texas Department Of Insurance, includes the investigation for Insurance Fraud. The following activities are considered to be fraudulent.

• Making sales of Insurance, without a proper license.
• Making illegal claims of Insurance
• Making misrepresentation of policies and coverages in order to increase gains.

The cases, which deal with civil prosecution, are referred to Texas Attorney General, and those, which involve criminal prosecution, are referred to the district attorneys. These can be contacted through telephone, by mails, through writings or even through the website.

Texas Department of Insurance
333 Guadalupe
Austin, Texas 78701
800-578-4677
tdi.state.tx.us

Homeowners Insurance In Texas
It was in the year 2003 that State wide reductions in Insurance rates were ordered, and most of the Insurance rates were brought under the Texas Department Of Insurance. In the following years, there was some more reduction in rates. It was at this time, that Texas became the only state in which the home Insurance rates declined. In today's scenario the residents of Texas, can save a lot of money by making an investment in the right Insurance policy, to meet the needs.

The most important reforms took place in the history of Texas Legislature, in the year 2003, when a new Senate Bill was passed. This bill made an exception, and many insurers could avoid the different TDI regulations over the rates of Insurance. There were more than $500 reductions made in rates, and by September 2003 there were much more reductions in rates made, through out the State.

Today the Homeowners Insurance Industry, in Texas is a $ 4.5 billion industry that is more expensive than in any other State. The insurance Industry is exposed to the severe weather conditions, such as the hailstorm and windstorms. As per the statistics the loss due to wind and hail accounts to 84% of the premiums that is paid by the Texans, and those who are situated in and around the United States.

Texas also had claims that were related to molds, in the time period of 1999-2002 that resulted in higher Insurance rates. It was in this period when the Lloyds companies that were totally exempt from the different types of rates and regulations wrote 95% of the homeowners markets of Insurance. It was in this period that the Texas Department of Insurance had no authority over what the homeowners paid as insurance.

After the reforms of 2003, the Insurance market in Texas has stabilized, with much reduction in the rates, and many more insurers entering markets of Insurance. Many changes in the law were made, that made things more flexible for the different insurers and consumers. Today the residents of Texas are able to purchase more Insurance policies, in order to meet their policy needs. However it is always suggested that proper search is made so that the best policy is adopted, that makes the best use of available resources.

Texas Fair Plan Association
Texas Insurance Code Article 21.49A established a new entity that is referred to as Texas Fair Plan Association. This was established specially to provide property Insurance for all those consumers who fulfilled eligibility criteria. This was specially established for those consumers, who had difficulty in getting coverage from the Insurance companies. Those consumers, whose application has been rejected by at least two Insurance companies, have got the right to the coverage in Texas. There can be another criteria that can be considered for eligibility, which states that the consumer may not have received a valid offer of Insurance, from a company that is licensed in Texas.

The Fair Plan Association in Texas is known to be providing limited coverage, for some family dwellings and townhouse units. There is also limited coverage in cases of rental dwellings along with the personal property of the tenants, who live in the rented premises.