TEXAS INITIATES FAIR PLAN

Texas Insurance Commissioner Jose Montemayor has officially launched the Texas FAIR (Fair Access to Insurance Requirements) Plan Association’s homeowners insurance market-of-last-resort in Texas. As of Jan. 8, the FAIR Plan had 450 insurance agencies ready to sell policies to Texas consumers. All licensed property and casualty insurers writing residential property insurance are required to participate in the plan. Participation includes paying assessments as needed if the plan’s claims and other expenses exceed the premiums paid for coverage. Access to the FAIR Plan is available only to those consumers who have been rejected for coverage by at least two licensed insurance companies and the consumer has not received a valid offer of comparable insurance from any other licensed insurance company. Additionally, the consumer’s home must be insurable and is subject to inspection by the FAIR Plan if necessary to establish that it meets the plan’s standards for insurability.