History and Purpose
The Texas Automobile Insurance Plan Association was established by law and is subject to regulatory supervision of the Texas Department of Insurance. The purpose of the Association is to make automobile coverages required by law available to eligible applicants, subject to the rules of the Association.
All insurance companies (except county mutuals) authorized to write motor vehicle liability policies in the State of Texas must be members of the Association and participate in its operation.
The Association has established procedures for the equitable distribution of applications for insurance to be assigned to insurance companies. The insurance company that is assigned the application issues the policy, collects the premium and pays any claims.
Where the Money Comes From
Association operating expenses are covered by assessments to member insurance companies.
The member companies keep all premiums for the policies they issue and pay claims arising from those policies, thus keeping any profits earned or suffering any excess losses incurred on those policies.