Texas. State Board of Insurance

The Board of Insurance regulates the state's insurance and fire prevention industries primarily under the provisions of the Texas Insurance Code, the basic objectives of which are to ensure the financial soundness of the insurance industry and to protect the insurance consumer. The board determines agency policy, sets rules, promulgates and approves rates in certain property/casualty lines of insurance, hears appeals of administrative rulings, and enforces statutory mandates. The board appoints, with the consent of the senate, the commissioner of insurance, who acts as the executive and administrative officer of the agency. The commissioner of insurance oversees four specialized units and four broad programs. Three of the specialized units are (1) Hearings, which conducts formal administrative hearings; (2) Conservation, which attempts to rehabilitate and conserve insurance entities with impaired financial conditions; and (3) Liquidation, which operates under court order to liquidate insolvent companies. The agency's four broad programs are the Regulated Lines and Licensing Program, the Financial Program, the Compliance Program and the Administrative Services Program. Regulated Lines and Licensing, with its property, casualty, life, and licensing sections, has jurisdiction for most of the statutory filings processed by the board. The Financial Program is responsible for monitoring the solvency and business affairs of insurance companies licensed in Texas. The Compliance Program enforces state law regarding unfair trade practices and unfair competition by an insurer or its representatives. The Administrative Services Program includes all of the agency's administrative and support activities.

The Texas State Board of Insurance regulates the state's insurance and fire prevention industries primarily under the provisions of the Texas Insurance Code, the basic objectives of which are to ensure the financial soundness of the insurance industry and to protect the insurance consumer. The board determines agency policy, sets rules, promulgates and approves rates in certain property/casualty lines of insurance, hears appeals of administrative rulings, and enforces statutory mandates. The board appoints, with the consent of the senate, the commissioner of insurance, who acts as the executive and administrative officer of the agency. The commissioner of insurance oversees four specialized units and four broad programs. Three of the specialized units are (1) Hearings, which conducts formal administrative hearings; (2) Conservation, which attempts to rehabilitate and conserve insurance entities with impaired financial conditions; and (3) Liquidation, which operates under court order to liquidate insolvent companies. The agency's four broad programs are the Regulated Lines and Licensing Program, the Financial Program, the Compliance Program and the Administrative Services Program. Regulated Lines and Licensing, with its property, casualty, life, and licensing sections, has jurisdiction for most of the statutory filings processed by the board. The Financial Program is responsible for monitoring the solvency and business affairs of insurance companies licensed in Texas. The Compliance Program enforces state law regarding unfair trade practices and unfair competition by an insurer or its representatives. The Administrative Services Program includes all of the agency's administrative and support activities.

From 1957 to 1993 the Texas State Board of Insurance was governed by a three-member Board of Insurance. The Board of Insurance's overall responsibilities were to license and regulate insurance companies, agents, and adjusters; to promulgate and approve uniform policies, rules, rates and endorsements in specified lines of insurance; to investigate claims and complaints of licensed entities; to conduct financial examinations and oversee corporate activities of insurance companies; to collect applicable taxes and fees; and to administer and enforce all laws, and board rules and regulations regarding the conduct of the business of insurance. The Board of Insurance appointed, with the consent of the Senate, a Commissioner of Insurance as its chief executive and administrative officer. The Commissioner had the primary responsibility of administering, enforcing, and carrying out the provisions of the Insurance Code. The three-member Board of Insurance had initial jurisdiction over policies, rules, and rates, and over appeals from the Commissioner of Insurance. In 1994, under authority of House Bill 1461, 73rd Legislature, the three-member Board of Insurance was eliminated and its management and regulatory duties became the responsibility of the Commissioner of Insurance.

Among its duties, the Texas State Board of Insurance licenses all insurance companies, files their charters, and issues a certificate of authority to do business in the state. The Board of Insurance, or one of its predecessors, has kept the charters of insurance companies since 1876.

The Texas State Board of Insurance regulates the state's insurance and fire prevention industries primarily under the provisions of the Texas Insurance Code, the basic objectives of which are to ensure the financial soundness of the insurance industry and to protect the insurance consumer. The board determines agency policy, sets rules, promulgates and approves rates in certain property / casualty lines of insurance, hears appeals of administrative rulings, and enforces statutory mandates. The board appoints, with the consent of the senate, the commissioner of insurance, who acts as the executive and administrative officer of the agency. Associate commissioners, under the direction of the commissioner, oversee operations of four of the agency's major programs: the Regulated Lines and Licensing Program, the Financial Program, the Compliance Program and the Administrative Services Program. Regulated Lines and Licensing, with its property, casualty, life, and licensing sections, has jurisdiction for most of the statutory filings processed by the board. The Property Activity is responsible for regulating all property insurance and also administers the state's windstorm inspection program. The Casualty Activity covers workers' compensation; liability insurance; and automobile, title, bond, burglary, plate glass, and miscellaneous casualty lines.

The Office of the State Fire Marshal is administered by the State Board of Insurance and the state fire marshal is appointed by the chair of the State Board of Insurance. The objective of the State Fire Marshal's Office is to reduce the number of fire deaths and injuries in Texas along with the incidence and severity of fires. The office provides coordination, training, and technical support to, among others, federal and state agencies with a need for, or interest in, fire safety.

The history of state regulation of insurance in Texas dates from the Texas Constitution of 1876 when a bill creating the Department of Insurance, Statistics and History was passed on August 21, 1876. The Department had the responsibility to file and maintain insurance company charters. During the twentieth century, there have been several major reorganizations of the state regulatory agency charged with the regulation of the insurance industry. In 1909, Senate Bill 291, 31st Legislature, required insurance companies to file financial and other information with the new Commissioner of Insurance and Banking. By 1923, a separate office of a Commissioner of Insurance was established. In 1927, the Commissioner of Insurance was consolidated with the Fire Insurance Commissioner to create the Board of Insurance Commissioners. This board was abolished in 1957 and replaced with the State Board of Insurance.

The State Board of Insurance was composed of three members, appointed by the Governor, with Senate approval. Members served six-year overlapping terms. The Board was governed by the Texas Insurance Code, which was first enacted in 1951 by S.B. 236 of the 52nd Legislature, Regular Session. From 1957-1991, the term State Board of Insurance was sometimes used to refer to the agency and all of its employees. At other times, it was used to designate only the three-member Board. The Board had initial jurisdiction over policies, rules, and rates, and over appeals from the Commissioner of Insurance. The Board appointed, with the consent of the Senate, the Commissioner of Insurance, who acted as the executive and administrative officer for the agency.

In 1991, the 72nd Legislature, 2nd Called Session, House Bill 62, revised the regulation of insurance and changed the agency's name to the Department of Insurance. The three-member State Board of Insurance was itself abolished by House Bill 1461 passed by the 73rd Legislature in 1993. The management and regulatory duties of the Board became the responsibility of the Commissioner of Insurance as of September 1, 1994. The Commissioner is now the overall authority in the enforcement of the Insurance Code and the regulation of the insurance industry in Texas.

The Texas State Board of Insurance regulates the state's insurance and fire prevention industries under the provisions of the Texas Insurance Code and other applicable statutes. The basic objectives of the code are to ensure the financial soundness of the insurance industry and to protect the insurance consumer. The board determines agency policy, sets rules, promulgates and approves rates in certain property/casualty lines of insurance, hears appeals of administrative rulings, and enforces statutory mandates. Five staff offices report directly to the board: the General Counsel, the Chief Clerk, Statistical and Rate Development, Statutory Implementation, and Information Services. The board appoints a commissioner of insurance, who is over all other activities of the agency with the exception of fire prevention functions. These are supervised by the state fire marshal, who is appointed by the board's chair and is responsible to the board.

The commissioner of insurance oversees four specialized units and four broad programs. Reporting to the commissioner are (1) Hearings, which conducts formal administrative hearings; (2) Conservation, which attempts to rehabilitate and conserve insurance entities with impaired financial conditions; (3) Liquidation, which operates under court order to liquidate insolvent companies; and (4) Internal Audit, which assists management with recommendations for improving the efficiency and effectiveness of agency resources. Associate commissioners, under the direction of the commissioner, oversee operations of the agency's four other major programs: the Regulated Lines and Licensing Program, the Financial Program, the Compliance Program, and the Administrative Services Program.