Frequently Asked Questions

The TPCIGA is a non-profit association created by the legislature to pay certain claims of Texas insurance consumers in the event that a property-casualty company becomes insolvent. TPCIGA is not an insurance company; it does not issue policies, collect premiums or make a profit, or otherwise stand in the shoes of an insolvent insurance company. We exist solely to pay claims when an insurer becomes insolvent. All insurance companies that are licensed to sell property and casualty insurance in Texas are required to be members of the association and to contribute to our fund. Our governing statute is found at Tex.Ins.Code chap. 462.

We are located in Austin, Texas. Please view our Contact Page.

TPCIGA has been set up by the legislature to protect you if your property or casualty carrier becomes insolvent. We can pay claims and provide a defense under a liability policy, so long as those obligations are “covered claims” under the TPCIGA Act.

We cover property and casualty lines of insurance, such as auto, homeowner’s, worker’s compensation, general liability and professional liability policies.

TPCIGA does not cover life, annuity, health or disability insurance - questions about those lines of insurance should be directed to the Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association, 1-800-982-6362, www.txlifega.org.
TPCIGA does not cover title insurance. Please refer to the Texas Title Insurance Guaranty Association, (512) 474-1587, www.ttiga.org.
We also do not cover surplus lines, credit insurance, financial or mortgage guaranty, fidelity or surety bonds, or ocean marine coverage. Please refer to § 462.007 for a more complete list of exceptions to coverage.

It’s similar to bankruptcy, except the process is managed by state courts and state insurance departments. When an insurance company has been found by a court to have insufficient funds to pay all of its claims, the court orders the company into liquidation, and the insurance department in the company’s home state becomes the Receiver or Liquidator of the company in order to liquidate its assets for the benefit of policyholders and claimants. Claims payments are usually stopped, and all of the company’s insurance policies are canceled. Existing claims are then referred to the appropriate state guaranty association for handling.

Our responsibilities are triggered when a court issues an order stating that the insurer is insolvent and the Texas Commissioner of Insurance issues an order designating the company as an "impaired insurer." To be considered for coverage by the TPCIGA, either the claimant or the insured must be a Texas resident, or the claim must arise from property permanently located in Texas. Insureds and claimants in other states may be covered by their own state guaranty associations.

If the company was licensed to write insurance in Texas and otherwise qualifies for membership in the association, the Texas Commissioner of Insurance will likely issue an order designating the company as an impaired insurer and trigger TPCIGA's duty to pay covered claims.

We will try to contact each person who had an open claim on file with the impaired insurer. As soon as possible after we receive the claim files from the company's receiver, we will mail out letters detailing your rights under the Guaranty Act and letting you know how to contact us. If you do not hear from us within a month from the date the company became impaired, feel free to contact us. However, we will be unable to give you specific information about your claim or to make any payments until we have received your claim file from the receiver.

Some delays are likely, since we must first obtain the files from the insolvent insurer and have time to review them. Oftentimes, the files are disorganized or in poor condition when we receive them. We will make every effort to quickly identify and expedite the handling of any hardship cases, such as when your auto is in the repair shop and can’t be released until your claim is paid. Be patient, and we will handle your claim as soon as practicable. We will make every effort to ensure that workers compensation periodic indemnity claims continue to be paid without interruption.

Refer to our Contact Page for our phone and fax numbers and email and mailing address.

Not necessarily. Because the guaranty association is designed to be a safety net and not a complete replacement for insurance coverage, there are limitations on the kinds and amounts of claims that TPCIGA can pay. With some exceptions, benefits are generally capped at $300,000 or the limits of the policy, whichever is less; however, TPCIGA will pay the full amount of a covered claim for statutory worker’s compensation benefits.

You must exhaust your rights under any other policy of insurance that might be available to pay your claim before obtaining coverage from the TPCIGA. TPCIGA is entitled to a credit for the full limits of that policy. For example, if you were in an automobile accident and you have uninsured motorists coverage with a solvent insurer, you must contact your agent to file a claim for your UM benefits. If you have a claim for policy benefits in excess of the amount payable by TPCIGA, you may present that claim to the receiver or the liquidator of the impaired insurer. Such claims will be payable only to the extent that there are sufficient company assets remaining to pay them.

Yes, unless you are a very large company -- TPCIGA does not handle non-workers’ compensation claims for insureds whose net worth equals or exceeds $50,000,000.00. TPCIGA handles the workers' compensation claims of such insureds, but it seeks reimbursement from the insured for all amounts paid on the claim.

For covered claims, TPCIGA pays up to policy limits or $300,000.00 in property damage, whichever is less. If you have uninsured motorists’ coverage with a solvent company, you should contact your agent to file a claim.

A. Covered claims for unearned premium are covered up to $25,000. TPCIGA will pay unearned premium claims after the Receiver processes the policy records and sends the unearned premium records to TPCIGA. This may take several weeks or several months, depending on the condition of the data at the insolvent insurance company.

So long as your claim appears in the company's records, TPCIGA will have notice of your claim and there is no need to file it again. However, if it has been more than a month since your insurer became impaired and you have not yet heard from TPCIGA, you should contact us to be sure we have a record of your claim.

Yes. Claims for statutory workers' compensation benefits must be timely filed in accordance with the procedures of the applicable workers' compensation act. For all other types of claims, the deadline is eighteen months after the date that the receivership court enters an order of liquidation. If you had already filed a claim with the insurer prior to receivership, TPCIGA considers your claim to have been filed prior to the deadline.

Proofs of Claim are sent by the receiver or liquidator of the insolvent insurer; they are not sent by the TPCIGA. Contact the receiver or liquidator if you have questions about whether to file a Proof of Claim. Information on contacting the receiver can be found on our Companies in Receivership page.

It is not necessary to file a Proof of Claim to assert a claim against the TPCIGA. However, you must file a Proof of Claim to protect your rights to share in any distribution from the receivership estate, particularly for claims that are not covered by TPCIGA or that exceed our “cap.”

You should immediately contact TPCIGA and send a copy of the claim and/or lawsuit to our office by facsimile and by certified mail.

If the lawsuit is within the coverage of the applicable policy, TPCIGA will continue to defend the insured to the extent of coverage under the policy and the Guaranty Act. TPCIGA may choose to retain the same attorney, or we may decide to have the case referred to a different attorney.

The law provides for an automatic stay of all proceedings pending in a court in Texas for six months from the date of impairment. If additional time is needed, the receivership court may extend the period of the stay.

First, consult your agent. Generally, it is in your best interest to replace coverage in an insolvent company as soon as possible, because the receivership court will cancel all policies, and the TPCIGA will only cover claims arising within the first 30 days after the company becomes impaired.

The Texas Department of Insurance (TDI) maintains complete and current records of all insurance companies licensed to do business in Texas. You can look up the company at the TDI website at https://apps.tdi.state.tx.us/pcci/pcci_search.jsp. You can also call TDI at (800) 252-3439. TPCIGA is comprised of authorized insurers writing association “covered” lines of business is Texas.

In compliance with the Medicare, Medicaid, and SCHIP Extension Act of 2007 (MMSEA), the TPCIGA will perform the appropriate CMS queries and serve as the Responsible Reporting Entity for any claim payments it makes that are subject to the MMSEA.

TPCIGA uses social security numbers only for certain claims-related activities, as set forth in our Privacy Policy. Beginning in 2011, the federal Medicare, Medicaid, and SCHIP Extension Act of 2007 (MMSEA) will require that we also determine whether a person receiving a payment for bodily injury is a Medicare beneficiary. To do so, we must obtain the claimant’s social security number. For more information on MMSEA, go to http://www.cms.gov/MandatoryInsRep.