FREQUENTLY ASKED QUESTIONS ABOUT TEXAS’ FINANCIAL RESPONSIBILITY VERIFICATION PROGRAM

• Is personal information of insureds protected? Yes, data from insurance companies is encrypted before it is sent to the vendor, and anytime the vendor sends information electronically it, too, is encrypted. “We put a lot of security measures and requirements in our bid, and we required a lot of our vendor to keep safe all this personal information that is collected,” Mallett said.
• What is required of insurance agents? An agent’s role in the process depends on the relationship between the agents and the companies. Basically the agent’s role is whatever the agent’s company says it is. The insurance companies have the ultimate responsibility for compliance, but they may ask agents to perform certain tasks, such as contacting their insureds and policyholders to confirm correct information. Now is the time make sure policyholder information is correct. “As an agent your company may dictate to you that you work with the policyholder to get that corrected. … Your company is going to let you know what role you should be playing,” Mallet said.
• What vehicles have to be reported to this program? In Texas, the registration database maintained by TXDoT does not distinguish a personal auto from one used for commercial purposes. So, while not currently required, the program is asking that commercial auto policies be reported in addition to personal auto policies. Any vehicle subject to on-road use must meet financial responsibility requirements and should be reported to the program. “Even things such as a golf cart could be modified for on-road use so they might need to be reported. … There’s a different answer for everybody unfortunately. That’s something we’ll be working hard on during the testing phase, getting all of that figured out,” Mallett said.
• Do you still need to provide proof of insurance cards to your clients? Yes. This program does not change the law that requires paper proof of insurance.
• Where is the money coming from to pay for this program? A portion of the $1 fee on vehicle registrations that goes to the state highway fund is used to support the verification program.

More information on the FRVP is available online at www.tdi.state.tx.us/company/frvp.html.