Texas has several residual-market associations and other special markets. The exams ask who they serve, how someone qualifies and what the deadlines are. The national guides explain residual markets and FAIR plans in general. This guide covers the Texas versions: TWIA, the Texas FAIR Plan, TAIPA, the medical liability JUA, county mutuals and title insurance.

Texas Windstorm Insurance Association (TIC Chapter 2210)

• Purpose: the residual insurer of last resort for windstorm and hail in the seacoast territory. It isn't meant to compete with private insurers (2210.001).
• Membership: every insurer authorized to write property insurance in Texas is a member as a condition of its authority (2210.051).
• Where it applies: the 14 first-tier coastal counties (2210.003):
  • Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson
  • Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, Willacy
• Eligibility: one declination of wind coverage from an insurer writing in those counties. Renewals need one declination every 3 years (2210.202).
• Term: 1 year, renewable while the property stays insurable (2210.203).
• Flood: certain structures need proof of flood insurance to be issued or renewed, and agents must offer flood coverage (2210.203).
• Building code: structures built after the 2009 law need a certificate of compliance with the windstorm building code (2210.258).
• Claims: filed within 1 year of the damage. TWIA accepts or denies within 60 days unless the Commissioner extends the period (2210.573).
• An agent who sells TWIA policies isn't TWIA's agent (2210.016).

Texas FAIR Plan Association (TIC Chapter 2211)

• Provides residential property insurance in underserved areas. That includes homeowners, residential fire and allied lines, and farm and ranch owners (2211.001, 2211.051).
• Eligibility: two declinations from authorized insurers (2211.151).
• The association issues policies in its own name. Claims are brought only against the association (2211.055).

Texas Automobile Insurance Plan Association (TIC Chapter 2151)

• Assigns drivers who certify rejection by at least two insurers writing auto in Texas.
• Every authorized auto liability insurer is a member (2151.051, 2151.102).

Other special markets

• The Texas Medical Liability Insurance Joint Underwriting Association provides medical liability coverage, on a self-supporting basis, to providers the Commissioner designates (TIC Chapter 2203).
• County mutuals may write all lines of auto insurance (912.151).
• Title insurance rates are promulgated by the Commissioner. Insurers and agents can't charge a different rate (2703.151).
• The guaranty association doesn't cover surplus lines or title insurance (462.007, 462.201).

Common exam traps

• TWIA needs one declination. FAIR Plan and TAIPA need two.
• A TWIA claim must be filed within 1 year. TWIA decides within 60 days.
• TWIA covers 14 coastal counties. It may require proof of flood coverage and a windstorm code certificate.
• The FAIR Plan writes residential property only.