TX| Texas Department of Insurance Commissioner’s Bulletin #B-0007-19
The Texas Insurance Commissioner’s Office issues a bulletin warning all insurance agents and third party administrators (TPAs) about the strict liabilities involved in participating or assisting in the unauthorized business of insurance.
The bulletin goes on to underscore the recent influx of insurance-like products marketed to Texas consumers. These products include companies claiming to be health care sharing ministries or other innovative businesses that have not complied with the requirements to be exempt from state regulations.
The Texas Department of Insurance advises agents and TPA’s to check the NAIC website to verify and insurance company’s license.
“A person who in any manner assists directly or indirectly in the procurement of the unauthorized insurance contract could be held strictly liable to the insured for the full amount of a claim or loss under the terms of the contract if the unauthorized insurer fails to pay the claim or loss. “Texas Department of Insurance – Commissioner’s Bulletin #B-0007-19 – August 12, 2019
The bulletin continues to outline the actions that the commissioner’s office may take against and agent or TPA who becomes involved in or assisting in the business of unauthorized insurance. This involvement would be a violation of the Insurance Code, Chapter 101.
Agents are urged to call the TDI if they have questions about any insurance company or product, at 512-676-6500