FAIR Plan Open to All Texas P/C Agencies

The Texas Department of Insurance announced that the Texas FAIR (Fair Access to Insurance Requirements) is now open to all licensed property and casualty insurance agencies in the state.

The FAIR plan, the state’s market of last resort for homeowners insurance, opened for business in December 2002 as a safety net for Texas consumers having difficulty obtaining homeowners insurance.

Insurance agencies were given access to the plan in phases, starting with 450 agencies in December. By March, the count was up to about 1,300 agencies. Now, in the final stage of the phase-in, the plan is open to any licensed property and casualty insurance agency that wishes to make the FAIR plan available to its customers who meet the plan’s eligibility criteria.

Any agencies that have not yet signed up may do so through the plan’s Web site, www.texasfairplan.org. After an insurance agency registers to become an authorized FAIR plan agency, it will be assigned to a servicing carrier and receive the information it needs to start writing FAIR plan policies.

The FAIR plan is available only to consumers who have been denied coverage by at least two licensed carriers in different insurer groups and have not received a valid offer of comparable insurance from any other licensed insurance company.

The plan had issued 4,800 policies so far.

Currently, the FAIR Plan writes only a limited homeowners policy (HO-A) that does not include coverage for water damage. However, the FAIR plan intends to expand its coverages to include condominium and tenant policies before June 1, 2003.