Texas Insurance Laws, Rules, and Regulations
The regulator and the rulebook
Texas insurance is governed by the Texas Insurance Code and Title 28 of the Texas Administrative Code, administered by the Texas Department of Insurance (TDI). The Commissioner of Insurance is appointed by the Governor, not elected, and serves a two-year term. Candidates routinely blur license and appointment: TDI licenses the individual agent, while each insurer separately appoints that agent to act on its behalf. A license without an appointment cannot be used to sell.
Agent conduct
Agents owe a fiduciary duty. Premiums belong to the insurer or the insured, must be held in a trust account, and may never be commingled with personal funds. Insurance Code Chapter 541 prohibits unfair trade practices: misrepresentation, false advertising, twisting (inducing a policyholder to lapse by misstatement), rebating (offering part of the premium or commission as an inducement), coercion, and unfair claim settlement practices. Continuing education is 24 hours every two years, and licenses renew biennially.
Claims timelines
The Prompt Payment of Claims Act is heavily tested: acknowledge the claim within 15 days, accept or deny within 15 days after proof of loss, and pay within 5 business days after acceptance. Unreasonable delay exposes the carrier to the claim, attorney fees, and 18% annual interest.
Residual markets
TWIA writes windstorm and hail on the coast; the Texas FAIR Plan writes basic property; TAIPA handles auto; the Texas Guaranty Association responds to insurer insolvency.
Rule of thumb: license = state, appointment = carrier; remember 15/15/5 and 24 hours.